In Re Chandler

76 B.R. 460, 1987 Bankr. LEXIS 1144
CourtUnited States Bankruptcy Court, E.D. Pennsylvania
DecidedJuly 24, 1987
Docket19-11472
StatusPublished
Cited by9 cases

This text of 76 B.R. 460 (In Re Chandler) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Chandler, 76 B.R. 460, 1987 Bankr. LEXIS 1144 (Pa. 1987).

Opinion

MEMORANDUM OPINION

DAVID A. SCHOLL, Bankruptcy Judge.

We are herein presented with Motions pursuant to 11 U.S.C. § 522(f)(1) to avoid certain judicial liens of the Commonwealth of Pennsylvania, Department of Public Welfare (hereinafter referred to as “DPW”) filed by the Debtors in the above-entitled cases, brothers who are co-owners of a premises situated at 5904 West Chew Avenue, Philadelphia, Pennsylvania 19138 (hereinafter referred to as “the premises”). Also pending in both cases and scheduled for hearings on August 11, 1987, are § 522(f)(1) Motions involving another judgment lienholder, First Mercantile Consumer Discount Co. (hereinafter referred to as “1st Merc.”). In recognition of the interest of economy served by so doing, we entered an Order on June 25, 1987, assigning the disposition of the instant Motions to the undersigned. Earlier, the disposition of the § 522(f)(1) Motions relating to 1st Merc, in both of these cases were also assigned to the undersigned. In all other respects, Eric’s bankruptcy case is and remains assigned to our judicial brother, the Honorable Bruce Fox.

The parties have submitted these matters on two sets of stipulated facts. The judgment liens of the premises in issue, the value of which was stipulated to be $19,-500.00, were inherited by the Debtors when their mother, Thelma L. Chandler, deeded it to them on September 30, 1982. The following quotation from the Debtors’ Brief, altered only to reflect our designated abbreviations of the names of the parties, accurately summarizes the pertinent aspects of these Stipulations:

1. The Premises is subject to a first mortgage held by United Brokers Mortgage Co. (“United”) in the principal amount of $1,500.00.
2. The Debtors are entitled to an exemption in said property in the amount of $15,000.00.
3. 1st Merc, holds a judgment lien in the amount of at least $8,607.00 entered in the Court of Common Pleas of Philadelphia County, November term, 1973, no. 3418, entered on March 14, 1980.
4. DPW has three judgment liens, revived or attempted to be revived as indicated in the chronological breakdown below, arising from Court of Common Pleas of Philadelphia County, March term, 1971, no. 3661, entered March 22, 1971 (“judgment no. 3661”); April term, 1975, no. 7184 (“judgment no. 7184”); April term, 1975, no. 7185 (“judgment no 7185”).
5. Each of DPW’s three judgments are for the amounts of $2,690.00.
The following is a chronological breakdown of judgment and revival activity as regards the subject real estate:
*462 [[Image here]]
DPW has stipulated that the revival of judgment no. 3661 on April 3, 1981 was outside the five-year statutory period [see 42 Pa.C.S.A. § 5526(1)] and, therefore, 1st Merc.’s judgment has priority over DPW’s judgment no. 3661. DPW has further stipulated that the revivals of judgments nos. 7184 and 7185 on December 18, 1984' do not appear on the Court of Common Pleas’ docket. Debtors’ Memorandum of law in Support of Motion to Avoid Liens, at 1-2.

In addition to the foregoing, the parties also stipulated that, although the revivals of judgment nos. 7184 and 7185 do not appear on the dockets, they were in fact noted as duly filed and revived on the judgment indices. The crux of the issue before us is whether the failure of the revivals to appear on the dockets is fatal to their priority. The parties further stipulated that, if DPW lost its priority as to 1st Merc, on judgment nos. 7184 and 7185 because of the absence of docketing, all of the DPW liens would be avoidable because the United Mortgage and 1st Merc, judgments would exhaust all of the Debtors’ equity which was not exempt. Meanwhile, if we determine that judgment nos. 7184 and 7185 were properly revived, the parties agree that DPW would have liens which could not totally be avoided, as $3,000.00 in non-exempt equity would remain. These Stipulations and calculations are totally consistent with the formula for applying § 522(f)(1) which we set forth in In re Magosin, 75 B.R. 545, 547 (Bankr.E.D.Pa.1987).

The Debtors’ argument that improper docketing renders the revivals ineffective is based solely upon 42 Pa.C.S.A. § 4303(a), which provides as follows:

§ 4303. Effect of judgments and orders as liens
(a) Real property. — Any judgment or other order of a court of common pleas for the payment of money shall be a lien upon real property on the conditions, to the extent and with the priority provided by statute or prescribed by general rule adopted pursuant to section 1722(b) (relating to enforcement and effect of orders and process) when it is entered of record and indexed in the office of the clerk of the court of common pleas of the county where the real property is situated, or in the office of the clerk of the *463 branch of the court of common pleas embracing such county.

The responses of DPW are as follows: (1) The recording of the revivals in the respective judgment indices is sufficient enough to furnish constructive notice to other lienholders and hence suffices to render the revivals perfected; and (2) The Commonwealth is granted a special dispensation in effecting revivals, requiring it to only file a “suggestion of non-payment” to do so. Although DPW recognizes that the statutory basis for this dispensation, 12 P.S. § 885, was repealed by the Judiciary Act Repealer Act (hereinafter referred to as “JARA”), it contends that 42 Pa.C.S.A. § 20003(b) continues the practice through its general proviso that, if no general rules are in effect with respect to any laws repealed by JARA, such laws become part of the common law of the Commonwealth. 1

We believe that DPW is entitled to prevail for a reason which it has not articulated, although our result is also supported by the policies expressed in both of DPW’s articulated responses. We believe that 42 Pa.C.S.A. § 4303(a) applies only to initial entries of judgments, not revivals of judgments. We note that none of the cases cited by the Debtors which evoke 42 Pa.C.S.A. § 4303(a) involve revivals. E.g., Trestrail v. Johnson, 297 Pa. 49, 146 A. 150 (1929); Jaczyszyn v. Paslawski, 147 Pa.Super. 97, 24 A.2d 116 (1942); and Penn Title Ins. Co. v. Intercounty Abstract, Ltd., 31 D. & C.3d 635 (Montg. Co.C.P.1984). Nor could we locate any other cases that did apply this statutory provision to revivals.

We believe that there is a reason for treating initial entry of judgments different from revivals. The entry of the judgment on the docket in the first place in itself provides a degree of constructive notice that the judgment exists and that it possibly could have been revived. If there is no initial docket entry of judgment, there is no constructive notice of the entry of the judgment at all.

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Bluebook (online)
76 B.R. 460, 1987 Bankr. LEXIS 1144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-chandler-paeb-1987.