Clark v. Cambria County Board of Assessment Appeals

747 A.2d 1242
CourtCommonwealth Court of Pennsylvania
DecidedFebruary 10, 2000
DocketNos. 605, 606, 607, 608, 609, 610 and 850 C.D. 1999
StatusPublished
Cited by8 cases

This text of 747 A.2d 1242 (Clark v. Cambria County Board of Assessment Appeals) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. Cambria County Board of Assessment Appeals, 747 A.2d 1242 (Pa. Ct. App. 2000).

Opinion

KELLEY, Judge.

Cambria County Board of Assessment Appeals (Board)1 appeals from the orders of the Court of Common Pleas of Cambria County (trial court) dated July 21, 1998 and February 4, 1999, which reduced the fair market and assessed values for six properties as entered by the Board and directed all taxing bodies to credit the appropriate amount of taxes paid as a result of the terms of the orders. The Board is not appealing from the merits of the orders, but from the trial court’s refusal to grant its Motion to Quash Assessment Appeals, and in the Alternative, Motion to Stay pending resolution of a Complaint in Equity in a separate but related matter. We vacate and dismiss with prejudice.

The facts of this case are as follows. Jacqueline Clark, H. Jay Clark, Elks BPOE, David and Jean Kulback, and UMWA Federal Credit Union (collectively, the property owners) filed a total of six tax assessment appeals relative to various properties they own on the grounds that the assessments were excessive. On October 13, 1997, the tax assessment appeals were heard by the Board and dismissed without reaching the merits. By formal decision dated October 20, 1997, the Board entered the assessments and dismissed the appeals. From the Board’s decision, the property owners filed separate appeals with the trial court.

On July 15, 1998, the Board filed with the trial court a Motion to Quash Assessment Appeal and in the Alternative, Motion to Stay (Motion to Quash/Motion to Stay or pre-trial motions) in the six tax assessment appeals. With the pre-trial motions, the Board sought to quash and dismiss the tax appeals with prejudice or in the alternative stay the appeals until the resolution of a Complaint in Equity in a collateral matter involving the same six tax assessment appeals.

The Complaint in Equity was filed against Larry Rodgers, d/b/a W.L. Rodgers Associates, (Rodgers) and Attorney Caram J. Abood,2 and sought to enjoin them from participating in tax assessment appeals, including the present appeals. The Board maintains that Rodgers is a non-aggrieved third party who solicited the property owners for the purposes of providing services in the preparation and filing of the tax assessment appeals. The Board contends that Rodgers’ business practices constitute the illegal activities of champerty,3 maintenance4 [1245]*1245and the unauthorized practice of law. The Board further contends that Rodgers, not the property owners, filed the present appeals under champertous agreements thereby rendering the present appeals void as they were not filed by the real parties in interest.

By orders dated July 21, 1998, the trial court denied the Board’s pre-trial motions. On January 14, 1999, hearings on the merits of the six tax assessment appeals were held.5 By final orders dated February 4, 1999, as modified by the orders of March 18, 1999,6 the trial court reduced the fair market and assessed values for the subject properties for the tax year 1998 and directed all taxing bodies to credit the appropriate amount of taxes paid as a result of the orders. This appeal now follows.7

The Board has presented the following issues for our review:

Whether the trial court erred by denying the Board’s Motion to Quash/Motion to Stay and thereafter rendering a decision on the merits of the six appeals when:
(a) no real case or controversy existed as the real parties in interest — the property owners — were not properly before the trial court as they had unlawfully contracted away their respective rights of appeal through champertous agreements;
(b) the alleged power-of-attorney lacked standing to file said appeals on behalf of the property owners; and
(c) the Complaint in Equity seeking a permanent injunction in the six tax appeals was and is still pending.

First, the Board contends that the trial court erred in denying the Motion to Quash/Motion to Stay as the underlying appeals were not filed by the real parties in interest — the property owners — but were prepared and filed by Rodgers, a non-aggrieved third party whose business activities constitute champerty, maintenance and the unauthorized practice of law. We agree.

As explained in Belfonte v. Miller, 212 Pa.Super. 508, 248 A.2d 150, 152 (1968), champerty is a “bargain by a stranger with a party to a suit, by which such third person undertakes to carry on the litigation at his own cost and risk, in consideration of receiving, if successful, a part of the proceeds or subject to be recovered.” See Richette v. Pennsylvania R.R., 410 Pa. 6, 187 A.2d 910 (1968) (A champertous agreement is “one in which a person having otherwise no interest in the subject matter of an action undertakes to carry on the suit at his own expense in consideration of receiving a share of what is recovered.”). A bargain to endeavor to enforce a claim in consideration of a promise of a share of the proceeds, or of any other fee contingent on success, is illegal, if it is also part of the bargain that the party seeking to enforce the claim shall pay the expenses incident thereto unless such party has or reasonably believes he has an interest recognized by law in the claim. Ames v. Hillside Coal and Iron Co., 314 Pa. 267, 272, 171 A. 610, 612 (1934); Belfonte.

In order for there to be champerty, three elements must be met. Belfonte. First, the party involved must be one who has no legitimate interest in the suit. Id. Second, the party must expend his own money in prosecuting the suit. Id. Third, the party must be entitled by the bargain to a share in the proceeds of the suit. Id.

The activity of champerty has long been considered repugnant to public policy against profiteering and speculating in litigation and grounds for denying the [1246]*1246aid of the court. Ames. The common law doctrine against champerty and maintenance continues to be a viable doctrine in Pennsylvania and can be raised as a defense. Kenrich Corp. v. Miller, 377 F.2d 312, 314 (3d Cir.1967); Westmoreland County v. Rodgers, 693 A.2d 996 (Pa.Cmwlth.1997).8 A plaintiff who sues on what would be another’s claim except for such champertous agreement will not be permitted to maintain an action (Kenrich) as such a plaintiff is not a “real party in interest” as required by Pa. R.C.P. No.20029 and would not have standing to maintain the action.10

In the case before us, the Board has raised serious allegations about whether the “real parties in interest” were before the trial court. In the pre-trial motions, the Board alleged that Rodgers, not the property owners, filed the appeals based upon champertous agreements. In support of these allegations, the Board presented evidence of an assessment appeal application submitted by Rodgers on behalf of the property owners. The Board also submitted evidence that Rodgers funded and directed the litigation. The Board also informed the trial court of prior acts of champerty committed by Rodgers.

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Clark v. CAMBRIA CTY. BD. OF ASSESS. APPEALS
747 A.2d 1242 (Commonwealth Court of Pennsylvania, 2000)

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Bluebook (online)
747 A.2d 1242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-cambria-county-board-of-assessment-appeals-pacommwct-2000.