Stevens, R. v. Johnson, W.

CourtSuperior Court of Pennsylvania
DecidedMay 18, 2016
Docket1935 MDA 2013
StatusUnpublished

This text of Stevens, R. v. Johnson, W. (Stevens, R. v. Johnson, W.) 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
Stevens, R. v. Johnson, W., (Pa. Ct. App. 2016).

Opinion

J. A06004/16

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

ROBERT A. STEVENS : IN THE SUPERIOR COURT OF : PENNSYLVANIA : : v. : : WILLIAM R. JOHNSON, PEGGY M. : HOUSEAL, CAPITAL CONSULTANTS, : INC., PBF ASSOCIATES, INC., PROFACE : BUSINESS SERVICES, INC. : : APPEAL OF: WILLIAM R. JOHNSON, : PEGGY M. HOUSEAL, PBF ASSOCIATES, : INC. : : : : No. 1935 MDA 2013

Appeal from the Order Entered October 22, 2013 In the Court of Common Pleas of York County Civil Division at No(s): 2012-SU-004044-86

BEFORE: LAZARUS,J., STABILE,J., and DUBOW, J.

MEMORANDUM BY DUBOW, J.: FILED MAY 18, 2016

Appellants, William R. Johnson, Peggy M. Houseal, and PBF Associates,

Inc., defendants below, appeal from the order entered on October 22, 2013,

in the York County Court of Common Pleas denying Appellants’

Petition/Motion of Defendants to Open and/or Strike Default Judgment. We

affirm.

On September 28, 2012, Appellee, Robert A. Stevens, plaintiff below,

filed a Complaint against individual defendants William R. Johnson and

Peggy M. Houseal, and three corporations: PBF Associates, Inc., a business J. A06004/16

in which Houseal was the sole owner and shareholder; Capital Consultants,

Inc.; and Proface Business Services, Inc., seeking to recover on a loan of

$100,000 he made to them. 1

The Sheriff served all defendants with the Complaint and a Request for

Production of Documents on October 10, 2012.

On January 24, 2013, Appellee mailed each Appellant and defendant

Capital Consultants, Inc. a Notice of Praecipe for Entry of Default Judgment

by Default for Failure to Plead pursuant to Pa.R.C.P. 237.1 (“Notice”). Six

weeks later, on March 8, 2013, upon Appellee’s praecipes, the Prothonotary

entered judgment by default against Appellants and Capital Consultants,

Inc.2

Although the court had already entered Default Judgments against

Appellants Johnson and Houseal, on April 17, 2013, they each filed Answers

to the Complaint and a “Response to Request for Production of Documents.”

On June 28, 2013, Appellee filed a Motion for Leave of Court to

Discontinue Action as to Proface Business Services, Inc. On July 9, 2013,

the trial court entered an order granting Appellee’s Motion. On July 11,

1 Appellee alleged in the Complaint that “the original loan was made to William R. Johnson and Peggy M. Houseal and they are jointly and severally liable to [Appellee] on that loan[,]” and that “Proface Business Services, Inc. has been an instrumentality of the individual defendants and has collaborated with them in a scheme to obtain money from [Appellee] to avoid repayment of the promised obligation.” Complaint, 9/28/12, at ¶ 23, 32. 2 Capital Consultants, Inc. is not a party to this appeal.

-2- J. A06004/16

2013, Appellee filed a Praecipe to Discontinue this action as to Proface

Business Services, Inc.

More than three months after the court entered Default Judgment

against the Appellants, on August 1, 2013, Appellants Johnson, Houseal, and

PBF Associates, Inc., filed a Petition/Motion of Defendants to Open and/or

Strike Default Judgment (“Motion”).

After a hearing on the Motion, the trial court denied the Motion on

October 22, 2013, concluding: (1) that Appellee gave notice of his intention

to enter judgment on January 24, 2013; and (2) that Appellants failed to

establish the requisites for opening or striking a default judgment. Trial Ct.

Op., 10/22/2013, at 4. Appellants timely appealed on October 28, 2013.

Appellants’ Notice of Appeal contained a “Concise Statement of Issues

Raised,” so the trial court did not order Appellants to comply with Pa.R.A.P.

1925. The trial court filed a Rule 1925(a) opinion.

Issues on Appeal

Appellant raises the following issues on appeal:

1. Whether the trial court erred in construing the law, specifically Pa.R.C.P. 237.1(a)(2)(i) and (ii), or abused its discretion by denying [A]ppellants[’] petition to strike or open the judgment by default when [ ] counsel for [A]ppellee gave only 8 (eight) days written Notice of Intention to file Praecipe and enter Judgment instead of the mandatory 10 (ten) days that the Rule requires.

2. Whether the trial court abused its discretion by denying [A]ppellants[’] petition to open judgment by default when [A]ppellants established overwhelming evidence of a meritorious defense to plaintiff’s complaint, reasonable

-3- J. A06004/16

explanations for its failure to respond, and timely filing of their petition.

Appellants’ Brief at 5.

Legal Analysis

In Appellants’ first issue, they claim that the trial court erred in

denying their Motion in light of the fact that they did not receive adequate

notice of Appellee’s intent to enter default judgment against them. In

support of this claim, Appellants note that on February 28, 2013, eight days

before filing a Praecipe to Enter Default Judgment, counsel for Appellee sent

Appellant Houseal a letter (“Letter”), which Appellants characterize as clearly

intending to put Appellants on ten-day notice of Appellee’s intention to take

a default judgment pursuant to Pa.R.C.P. 237.1. Id. at 12. We disagree,

and agree with the trial court that Appellee properly gave Appellants notice

of his intent to enter a default judgment more than ten days before so

doing.

The interpretation and application of a Rule of Civil Procedure is a

question of law, for which our standard of review is de novo and our scope of

review is plenary. Roth v. Ross, 85 A.3d 590, 592 (Pa. Super. 2014).

Pa.R.C.P. 237.1 prohibits the entry of judgment of non pros for failure

to plead “unless the praecipe for entry includes a certification that a written

notice of intention to file the praecipe was mailed or delivered . . . at least

ten days prior to the date of the filing of the praecipe to the party against

-4- J. A06004/16

whom judgment is to be entered and to the party’s attorney of record, if

any.” Pa.R.C.P. 237.1(a)(2)(ii).

In the instant matter, our review of the record indicates that Appellee

certified in the March 8, 2013 Praecipe to Enter Judgment by Default

(“Praecipe”) that he mailed Appellants the Notice on January 24, 2013, and

that Appellee annexed a copy of the Notice to the Praecipe. The Notice is in

the form required by Pa.R.C.P. 237.5, Form of Notice of Praecipe to Enter

Judgment by Default.

Notwithstanding the propriety of Appellee’s Notice and Praecipe,

Appellants claim that the trial court erred in calculating the date they

received notice of Appellee’s intent to enter default judgment from the date

Appellee mailed the Notice (January 24, 2013), rather than from the date of

Appellee’s counsel’s Letter to Appellants (February 28, 2013). Appellants

baldly assert, that, “once a subsequent ten day letter is given under the

rule, [ ] it should be complied with, irrespective if a prior one had been

sent.” Appellants’ Brief at 13.

This claim of error fails for two reasons. First, we disagree with

Appellants’ characterization of counsel’s February 28, 2013 Letter as

constituting a subsequent Notice of Praecipe for Entry of Judgment by

Default for Failure to Plead. The Letter is not in the form required by Rule

237.5. Rather, it appears to be merely a courtesy letter reminding

Appellants that entry of default judgment, pursuant to the Notice mailed on

-5- J.

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Bluebook (online)
Stevens, R. v. Johnson, W., Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-r-v-johnson-w-pasuperct-2016.