Reilly Associates v. Duryea Borough Sewer Authority

631 A.2d 621, 428 Pa. Super. 460, 1993 Pa. Super. LEXIS 2615
CourtSuperior Court of Pennsylvania
DecidedAugust 12, 1993
Docket22
StatusPublished
Cited by8 cases

This text of 631 A.2d 621 (Reilly Associates v. Duryea Borough Sewer Authority) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reilly Associates v. Duryea Borough Sewer Authority, 631 A.2d 621, 428 Pa. Super. 460, 1993 Pa. Super. LEXIS 2615 (Pa. Ct. App. 1993).

Opinion

ROWLEY, President Judge:

This appeal arises out of an action brought by plaintiff/appellee Reilly Associates (“Reilly”) against defendant/appellant Duryea Borough Sewer Authority (“the Authority”) to recover for the latter’s alleged nonpayment for services rendered. The Authority’s failure to file an answer to Reilly’s complaint resulted in the entry of a default judgment against the Authority. In an order entered November 19, 1992, the trial court denied the Authority’s petition to strike the default judgment. The sole issue raised by the Authority in this timely appeal of that order is whether the trial court erred in doing so. Having carefully considered the arguments of the parties in light of the relevant case law and the evidence of record, we affirm the order of November 19, 1992.

The requirements for obtaining a default judgment are set forth in Pa.R.C.P. 237.1(a):

*462 No judgment by default shall be entered by the prothonotary unless the praecipe for entry includes a certification that a written notice of intention to file the praecipe was mailed or delivered to the party against whom judgment is to be entered and to his attorney of record, if any, after the default occurred and at least ten days prior to the date of the filing of the praecipe. If a written agreement for an extension of time specifies a time within which the required action must be taken and a default occurs thereafter, judgment by default may be entered by the prothonotary without prior notice under this rule. A copy of the notice or agreement shall be attached to the praecipe.

Pa.R.C.P. 237.1(a) (emphasis added). The Authority asserts that Reilly failed in several respects to comply with the notice provisions set forth in the first sentence of this paragraph. Reilly maintains, however, that because a letter from the Authority’s solicitor constituted a written agreement for an extension of time, compliance with the notice provisions was unnecessary.

We will not disturb the trial court’s ruling in this matter absent a manifest abuse of discretion or an error of law. Marzullo v. Stop-N-Go Food Stores of Pittsburgh, Inc., 364 Pa.Super. 106, 110, 527 A.2d 550, 551, alloc. denied, 517 Pa. 599, 535 A.2d 1058 (1987). The trial court indicated its agreement with Reilly’s position by citing Johnson v. Southeastern Pennsylvania Transportation Authority, 524 Pa. 209, 570 A.2d 71 (1990), and Miller Block Company v. United States National Bank in Johnstown, 389 Pa.Super. 461, 567 A.2d 695 (1989), alloc. denied, 525 Pa. 658, 582 A.2d 324 (1990), discussed below, as the basis for denying the Authority’s petition to strike the judgment.

In Miller Block v. U.S. National Bank, the appellant Bank argued that even if there existed a written agreement for extension of time, it was still essential for the party seeking a default judgment to comply with the notice provisions of Rule 237.1(a). This Court held, however, that “[t]he express purpose of the written extension exception to the Rule 237.1 *463 notice is to obviate the need for the written notice of intent to take a default judgment.” Id. at 468, 567 A.2d at 699. In light of that holding, we consider whether a written extension agreement exists in the present case.

Reilly contends that the following letter of February 6, 1991, from the Authority’s counsel to Reilly’s counsel is such an agreement:

I am in receipt of a copy of the complaint filed in the above-captioned matter on behalf of the Plaintiff.
The purpose of this letter is to request an extension of thirty (30) days for the filing of an Answer on behalf of the Defendant, until March 8, 1991. If you have an objection to this arrangement, please advise me immediately. I will infer from silence that you consent to this arrangement.

Reilly did not respond to the Authority’s letter. The Authority did not file an answer on or before March 8, 1991. On March 20, 1991, still lacking an answer, counsel for Reilly praeciped for entry of a default judgment.

The Explanatory Note to Rule 237.1 advises that “[a] written agreement of extension need not be formal. An exchange of letters between counsel will suffice. But any agreement should be sufficiently specific to avoid argument over its terms.” In Johnson v. SEPTA, supra, our Supreme Court specified the necessary elements of a written extension agreement:

The requirements, basically, are the same as for any writing which purports to be a contract: the parties must be known; the terms (here the time period involved) must be definite; and the writing must, when plainly construed, indicate an agreement or meeting of the minds on the terms. In addition, an agreement written in the context of statutory or regulatory application must be read in the context of the statute or rule. Finally, although the agreement need not be formal, as the comment indicates, it does require at least “an exchange of letters.”

Id., 524 Pa. at 214-15, 570 A.2d at 73-74 (footnotes omitted).

In the letter of February 6,1991, the parties are known and the crucial term (i.e., the time period) is definite. Whether *464 there was a meeting of the minds depends, we think, on the significance of the “missing” letter: the Authority’s intent is plain from its letter, but there is no response from Reilly. The requirement of “an exchange of letters” is noted by the Supreme Court not only in the passage quoted above, but also in the following discussion:

[A]bsent an “exchange of letters ” manifesting a meeting of the minds, and absent an unambiguous statement of a definite time period for the extension, a separate ten day notice in a form substantially the same as that set out in Rule 287.1 would be required before a default judgment was permitted under the rule.

Id. at 217, 570 A.2d at 74-75 (emphasis in original). The issue before the Court, however, was not whether a single letter can ever indicate a written agreement for an extension, but whether the two letters involved in the case — one party requesting an open-ended extension, the other replying by granting a thirty-day extension — manifested such an agreement. The Court concluded that they did not.

The issue to be decided here, in contrast, is whether a single letter from defendant’s counsel to plaintiffs counsel, requesting a specific extension of time within which to file an answer and expressly stating that silence would be construed as consent to the proposal, constitutes a written agreement for extension. We conclude that this issue has yet to be decided, as it was not the issue before the Court in Johnson v. SEPTA and we have found no case directly on point.

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Bluebook (online)
631 A.2d 621, 428 Pa. Super. 460, 1993 Pa. Super. LEXIS 2615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reilly-associates-v-duryea-borough-sewer-authority-pasuperct-1993.