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Remedies Available to a Landlord Upon an Event of Default Under a Lease |
There are numerous remedies available to a landlord upon an event of default by a tenant under a lease. While a landlord's actual remedies will be dictated by the terms of the lease itself or generally determined by law, set forth below is a general discussion of some of those remedies. RECOVERY OF RENT BY ASSUMPSIT A suit to recover rent may be brought even when the lease in question is found to be invalid. In Pennsylvania, the statute of frauds requires that a lease for more than three years be in writing and signed by the party to be charged. See 68 P.S. §250.202. Nevertheless, under a lease of more than three years that has not been signed by the parties, the landlord may still maintain an action in assumpsit for the rental value of the premises while the lessee was in possession. See Folmar Corporation v. Logue, 418 Pa. 181 (1965). A judgment for unpaid rent will not bar a subsequent action for rent that accrues in arrears after the initial judgment. See Whitt v. Philadelphia Housing Authority, 325 Pa.Super. 135, 472 A.2d 684 (1984). B. Procedure The Complaint must include a notice to the defendant, much like the notice required by the Civil Procedure Rules. The notice is required by Rule 318 of the District Justice rules, and there is a form available at the District Justice offices. Although a different set of rules technically governs actions for possession and actions solely for unpaid rent, the complaint and notice forms are identical; having boxes in which to indicate which type of suit is being brought. Thus, the procedure found in Rules 501-582 applies whether a landlord seeks eviction or money damages only, even though the Rules are stated as governing actions for Possession of Property only. Once the Complaint is filed, the District Justice will set a tentative hearing date within 7 to 15 days. Following service of the Complaint, which is done by the District Justice's office, the tenant has the opportunity to bring a counterclaim against the landlord. If the tenant files a complaint, the hearing will be set within 7 to 15 days from that filing. If the tenant fails to file a complaint, the original hearing date given to the landlord will be the date of the hearing. See District Justice Rule 504. TRESPASS AND ASSUMPSIT It is a question of fact whether a landlord is treating a holdover tenant as a trespasser or as a tenant. Courts have found that landlords begin treating tenants as trespassers once a court enters a judgment in ejectment. See id. If a tenant is treated as a holdover tenant, and not as a trespasser, courts will impose upon the tenant a term of occupation similar to his original lease term, if the original term was less than one year. If the term was for a year or more, the tenancy will be from year to year. See Routman v. Bohm, 194 Pa.Super. 413, 168 A.2d 844 (1961). Should the landlord change his mind and attempt to eject the tenant in the middle of that holdover term he may recover rent during the possession up to the time of eviction, but may not recover rent after the eviction to the end of the term. See DeLong Hook and Eye Company v. Vogue Silk Hosiery Company, 108 Pa.Super. 369, 164 A. 848 (1933). Courts also look at whether or not a landlord elects to collect rent during the time the tenant is a holdover to determine whether or not he is being treated as a trespasser. See Mack v. Fennell, 195 Pa. Super. 501 (1961). See also Taylor v. Kaufhold, 368 Pa. 538 (1951) (holding that the measure of damages in a case of trespass is pecuniary loss, and not the rental value of the premises for the time of possession). B. Procedure The procedure in an action for rent against a trespasser or tenant at sufferance is identical to the procedure involved in actions to recover rent under a lease. ACTION IN EJECTMENT A Substantive Law The Pennsylvania Landlord Tenant Act in Section 250.501 allows a landlord the means to dispossess a tenant from the leasehold for three reasons, (i) the termination of the lease term, (ii) forfeiture of the lease, or (iii) failure of the tenant to satisfy rent payments. Substantively, the action in ejectment has been expressly acknowledged in Pennsylvania caselaw as the general method of recovering real property. See Soffer v. Beech, 487 Pa. 255, 409 A.2d 337 (1979). Section 250.511 specifically allows a landlord to recover possession by action of ejectment or by confessing judgment in accordance with the terms of the lease. See Commonwealth by Creamer v. Monumental Properties, Inc., 314 A.2d 333, 10 Pa. Comm. 596 (1974) (affirmed in part, reversed in part on other grounds) 329 A.2d 812, 459 Pa. 450, on remand 365 A.2d 442, 26 Pa. Comm. 399. See also Federman v. Pozsonyi, 529 A.2d 530, 365 Pa. Super. 324 (1987). See also Confession of Judgment, supra. 1. Expiration of a lease term. The notice to quit must be served by posting on the property or by personal service. See Section 250.501. Service by mail has been found to be ineffective. See Pakyz v. Weiser, 15 Adams L. J. 196 (1969). The notice may be waived through a provision in the lease. Once the tenant is notified of the landlord's desire to eject him, and he does not vacate in the allotted time, the landlord must file the action with the District Justice in which the leased premises are located. The form used is the Landlord-Tenant Complaint, and it contains the same allegations as used in an action to collect unpaid rent. The Complaint must aver that notice was correctly given, otherwise, the landlord may face reversal of any judgment. See Patrzcia Broz. v. McKeefry, 38 D.& C. 2d 149 (1966). If the claim includes damages for unpaid rent, the amount must be under the jurisdictional limit of the District Justice. See Ryder v. Prospect Park Realty Co., 206 Pa.Super. 108, 211 A/2d 53 (1965). If the claim for damages is over the limit, a separate action must be brought in Common Pleas court. 42 Pa.C.S.A. § 1515(3). The value of the residence in question is irrelevant to jurisdiction. RECOVERY FOR INJURY TO REVERSION ASSUMPSIT AFTER ABANDONMENT Some Federal Court opinions have held the entire section of the statute regarding the distraint provisions unconstitutional as a whole, because of the landlord's mere ability to levy the tenant's property without any notice or hearing. See Gross v. Fox, 349 F. Supp. 1164 (E.D.Pa. 1972) vacated 496 F. 2d. 11 53 (3rd Cir. 1974). Contrarily, other decisions have upheld the constitutionality of the entire section. See In Re Egg crate Incorporated Bankruptcy (W.D. Pa. 1989) 105 BR 283. Most of the cases upholding the constitutionality rely on the fact that distraint has been a common law remedy in Pennsylvania long before the enactment of the 14th Amendment. Therefore, the Landlord and Tenant Act does not delegate to private parties sovereign powers, but merely regulates how those powers are to be used. See SMI Industries, Inc. v. Lanard & Axilbund, Inc., 481 F. Supp 459 (D.C. 1979). Because of the unsettled nature of the question of the distraint provisions' constitutionality, it can only be assured that a posting of a notice of levy may be the sole constitutional provision of the distraint statute. See McCumber, 17 D. &. C. 3d at 12. Section 250.309 requires five days' notice be given to the tenant by mail or by posting upon the premises before the distrained property is sold. The notice must contain the cause of the taking and specify the date of levy and what personal property has been distrained. The landlord must also inform the tenant of the amount of rent in arrears. Sections 250.401 through 250.404 exempt certain pieces of personal property from the distress and distrain provisions under certain circumstances. CONFESSION OF JUDGMENT A. Substantive Law B. Procedure In order to confess judgment for money, the landlord must either file the original instrument authorizing confession with the Prothonotary, or file a complaint with the Common Pleas Court, in the form prescribed by Rule 2952. See Pa.R.C.P. 2951(b). If the original instrument is filed, it is usually accompanied by a praecipe allowing the Prothonotary to enter judgment immediately. This method may only be used when the amount due is evident on the face of the instrument. If a complaint must be used, it must contain a copy of the lease, or a reason why one cannot be attached, the grounds for confession, and an itemization of damages. Judgment may be entered without giving the defendant opportunity to answer. See Penn State Mutual Ins. Co. v. Burglar's Enemy, Inc., 263 Pa.Super. 89, 397 A.2d 10 (1979). If the confession is for possession, and not money, the complaint must contain a description of the property and demand for ejectment. See Pa.R.C.P. 2952, 2970-74. A form of confession of judgment must be filed in accordance with Rule 2955, after which the Prothonotary shall enter judgment. After judgment has been entered, the Prothonotary gives written notice to the defendant, according to Rule 236. The tenant then has the opportunity to open or strike the judgment, following the procedures listed in Rule 2959. Execution upon the judgment is allowed by Rule 3101, et. seq, which is commenced by filing a praecipe and a writ of execution with the Prothonotary in the county in which the judgment has been entered. Then, the sheriff to satisfy the judgment sells the property in the premises, or the sheriff forcibly ejects the tenant. Notice must be provided to the tenant at least six days prior to the sheriff's action. The confession may be for both money and possession, but the landlord may not recover both accelerated rent to the end of the term and possession. See Greco v. Woodlawn Furniture Co., 99 Pa.Super. 290 (1930). SELF-HELP Yet, courts and treatises have shown disapproval of self-help in recent years. The Restatement (Second) of Property generally disapproves of self-help repossession; especially when there is a statutory speedy judicial remedy. Some courts have held that self-help disturbs the public peace, and is therefore discouraged. See Wofford v. Vavreck, 22 D. & C. 3d 444 (Craw. Cty. 1981). Several common pleas courts have granted injunctions to tenants who were evicted by self-help methods. See Wofford, 22 D. & C. 3d 444, citing Perine v. Novay, (Alleg. Co. 1975), Ebersole v. Narehood, (Perry Cty. 1975), Buffington v. Ballester (Chest. Cty. 1976), Venezia v. Stake (Frank. Cty. 1977), Bentzel v. Pennebaker, (Dauph Cty. 1975), Morrison v. Brungard (Lyc. Cty. 1974). Additionally, with the advent of the implied warranty of habitability in residential leases, following Pugh v. Holmes, 486 Pa. 272, 405 A.2d 897 (1979), tenants may have very real defenses to eviction, which can be denied them in situations of landlord self-help. See also Wofford, 22 D. & C. 3d at 445. B. Procedure A successful landlord may also execute a judgment against the personal property of the tenant separate from wages, such as that remaining in the residence. The procedure governing execution of a judgment in Common Pleas court is found in Pa.R.C.P. 3101 et.seq., and is similar to the wage garnishment procedure. APPEALS |