Judgment2Justice v. Commonwealth Financial Systems, Inc.

45 Pa. D. & C.5th 475
CourtPennsylvania Court of Common Pleas, Monroe County
DecidedJanuary 28, 2015
DocketNo. 9737 CV 2010
StatusPublished

This text of 45 Pa. D. & C.5th 475 (Judgment2Justice v. Commonwealth Financial Systems, Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Monroe County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Judgment2Justice v. Commonwealth Financial Systems, Inc., 45 Pa. D. & C.5th 475 (Pa. Super. Ct. 2015).

Opinion

HARLACHER SIBUM, /.,

This matter comes before us on defendant’s petition to strike and/or vacate and/or open default judgment entered in Wisconsin [477]*477and transferred to Monroe County, Pennsylvania. The relevant facts and procedural history are summarized as follows: On March 26, 2010, A3 Global Solutions, LLC (hereinafter A3 Global) commenced an action in Wisconsin against defendant, Commonwealth Financial Systems, Inc. After defendant failed to timely defend the action, A3 Global filed amotion for default judgment on May 10, 2010. The Wisconsin Circuit Court of Dane County granted A3 Global’s motion and entered a default judgment against defendant on May 13, 2010. Thereafter, defendant filed a petition to open the default judgment on May 20, 2010. On June 8, 2010, the Wisconsin Circuit Court, after oral argument, denied defendant’s petition to open the judgment.

On October 8, 2010, A3 Global filed a praecipe for foreign judgment in the amount of $117,570.72 with the Monroe County Prothonotary and execution was issued thereon. Defendant then filed a petition to strike, vacate or stay the judgment entered in Wisconsin on October 18, 2010. In support thereof, defendant alleges that (1) Wisconsin lacked jurisdiction over defendant and enforcing the judgment would violate defendant’s due process rights; and (2) plaintiff has failed to comply with the mandate of 42 Pa.C.S. § 4306(c). On December 12, 2014, Judgment2Justice became A3 Global’s party successor pursuant to Pa.RX.P. 2352. Upon review of all pleadings in this matter and oral argument heard on January 5, 2015, we are now prepared to decide.

DISCUSSION

Under the full faith and credit clause of the United States Constitution, Pennsylvania courts must recognize and enforce the judgment of its sister states. U.S. CONST, art. IV, § 1. Fulfilling this constitutional mandate, Pennsylvania enacted the Pennsylvania Uniform Enforcement of [478]*478Foreign Judgments Act (UEFJA). 42 Pa.C.S. § 4306. The statute provides:

A copy of any foreign judgment including the docket entries incidental thereto authenticated in accordance with act of congress or this title may be filed in the office of the clerk of any court of common pleas of this Commonwealth. The clerk shall treat the foreign judgment in the same manner as a judgment of any court of common pleas of this Commonwealth. A judgment so filed shall be a lien as of the date of filing and shall have the same effect and be subject to the same procedures, defenses and proceedings for reopening, vacating, or staying as a judgment of any court of common pleas of this Commonwealth and may be enforced or satisfied in like manner.

42Pa.C.S. § 4306(b). While PennsylvaniaUEFJAprovides authority for common pleas courts to “reopen, vacate, or stay” foreign judgments, it should not be construed to override the constitutional prescription that full faith and credit be given to judicial proceedings in other states and the federal courts. U.S. CONST, art. IV, § 1; 28 U.S.C. § 1738; see also Tronagun Corp. v. Mizerock, 820 F.Supp. 225, 227 (W.D. Pa. 1993).

The Superior Court in Noetzel v. Glasgow, Inc., 487 A.2d 1372 (Pa. Super. 1985) has instructed that “[a] foreign judgment is entitled to full faith and credit in Pennsylvania so long as there was jurisdiction by the court which originally awarded the judgment, see Stambaugh v. Stambaugh, 458 Pa. 147, 329 A.2d 483 (1974), and the defendant had an opportunity to appear and defend, see Morris Lapidus Associates v. Airportels Inc., 240 Pa. Super. 80, 361 A.2d 660 (1970).” Further, the court in Noetzel explained that:

[479]*479When a court of competent jurisdiction has determined a litigated case on its merits, the judgment entered and not reversed on appeal, is forever and under all circumstances, final and conclusive as between the parties to the suit and their privies, in respect to every fact which might properly be considered in reaching a judicial determination of the controversy, and in respect to all points of law there adjudged, as those points relate directly to the cause of action in litigation.

Id., 487 A.2d at 1376. Therefore, the “validity” of a foreign judgment is established in the transferor court, and may not be examined or retried in Pennsylvania, except for the limited purposes of determining whether the transferor court had jurisdiction to enter the judgment, and whether the judgment was obtained without derogating the judgment debtor’s due process rights. Nobel Well Service, Inc. v. Penn Energy, 502 A.2d 200, 205-206 (Pa. Super. 1985).

In the instant case, defendant raises two arguments in support of its petition. First, defendant argues that the foreign judgment must be vacated and/or opened for lack of subject matter jurisdiction and lack of due process. Second, defendant argues that plaintiff has failed to comply with the strict mandates of 42 Pa.C.S. § 4306(c) by failing to attach an affidavit bearing defendant’s name and address. We will now address each of defendant’s arguments in turn.

a. Wisconsin’s Lack of Jurisdiction and Due Process

Defendant primarily contends that the Wisconsin judgment is void on its face because adequate notice of the motion for default judgment was not provided. Defendant cites to Wis. Stat. § 806.02(1), which provides that “[a] default judgment may be rendered...if no issue of law [480]*480or fact has been joined and if the time for joining issue has expired. Any defendant appearing in an action shall be entitled to notice of motion for judgment.” Defendant further argues that by operation of Wis. Stat. § 801.15(5) (a) and Wis. Stat. § 801.15(l)(b)1, defendant should have been given 3-days notice of the default judgment, and that the judgment could not have been entered before May 14, 2010. Thus, defendant argues that they did not receive adequate notice of the motion for judgment thereby rendering the entry of default judgment void.

Upon further review, we find that defendant’s reliance on Wisconsin’s default judgment and timing statutes is misplaced. The statute governing default judgments in argument is more properly raised as a personal jurisdiction challenge. Upon review of the record, we agree with A3 Global’s argument.

In response to the default judgment, defendant filed a motion to reopen and extend the time to answer plaintiffs complaint on June 1, 2010 in the Wisconsin Court. By doing so, defendant has effectively entered their appearance before the Wisconsin court, and voluntarily submitted themselves to the court’s jurisdiction. “[Wjhere an appearance is made and relief is sought on [481]

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Related

Stambaugh v. Stambaugh
329 A.2d 483 (Supreme Court of Pennsylvania, 1974)
Tronagun Corp. v. Mizerock
820 F. Supp. 225 (W.D. Pennsylvania, 1993)
Nobel Well Service, Inc. v. Penn Energy, Inc.
502 A.2d 200 (Supreme Court of Pennsylvania, 1985)
Lees v. Department of Industry, Labor & Human Relations
182 N.W.2d 245 (Wisconsin Supreme Court, 1971)
U.K. LaSalle, Inc. v. Lawless
618 A.2d 447 (Superior Court of Pennsylvania, 1992)
Monaco v. Montgomery Cab Co.
208 A.2d 252 (Supreme Court of Pennsylvania, 1965)
Noetzel v. Glasgow, Inc.
487 A.2d 1372 (Supreme Court of Pennsylvania, 1985)
Ward v. Price
814 A.2d 262 (Superior Court of Pennsylvania, 2002)
Yentzer v. Taylor Wine Co.
186 A.2d 396 (Supreme Court of Pennsylvania, 1962)
Morris Lapidus Associates v. Airportels, Inc.
361 A.2d 660 (Superior Court of Pennsylvania, 1976)
Gulf Mortgage & Realty Investments v. Alten
7 Pa. D. & C.3d 709 (Montgomery County Court of Common Pleas, 1977)

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Bluebook (online)
45 Pa. D. & C.5th 475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/judgment2justice-v-commonwealth-financial-systems-inc-pactcomplmonroe-2015.