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                                                      PRINTER'S NO. 3183

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2356 Session of 1990


        INTRODUCED BY FLICK, NOYE, GEIST, BURD, YANDRISEVITS, SAURMAN,
           TRELLO, FARGO, MORRIS AND LANGTRY, MARCH 19, 1990

        REFERRED TO COMMITTEE ON JUDICIARY, MARCH 19, 1990

                                     AN ACT

     1  Amending Title 42 (Judiciary and Judicial Procedure) of the
     2     Pennsylvania Consolidated Statutes, further providing for
     3     wrongful use of civil proceedings.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Section 8351(b) of Title 42 of the Pennsylvania
     7  Consolidated Statutes is amended to read:
     8  § 8351.  Wrongful use of civil proceedings.
     9     * * *
    10     (b)  Arrest or seizure of person or property not required.--
    11  The arrest or seizure of the person or property of the
    12  [plaintiff] aggrieved party shall not be a necessary element for
    13  an action brought pursuant to this subchapter.
    14     Section 2.  The introductory paragraph of section 8353 of
    15  Title 42 is amended and the section is amended by adding a
    16  paragraph to read:
    17  § 8353.  Damages.
    18     When the essential elements of an action brought pursuant to

     1  this subchapter have been established as provided in section
     2  8351 (relating to wrongful use of civil proceedings), the
     3  [plaintiff] aggrieved party is entitled to recover for the
     4  following:
     5         * * *
     6         (7)  Court costs, including fees under section 8355(b)(5)
     7     (relating to procedure) and reasonable attorney fees for the
     8     maintenance of the action.
     9     Section 3.  Section 8354 of Title 42 is amended to read:
    10  § 8354.  Burden of proof.
    11     In an action brought pursuant to this subchapter the
    12  [plaintiff] aggrieved party has the burden of proving, when the
    13  issue is properly raised, that:
    14         (1)  The [defendant has] plaintiff in the original action
    15     procured, initiated or continued the civil proceedings
    16     against him.
    17         (2)  The proceedings were terminated in his favor.
    18         (3)  The [defendant] plaintiff in the original action did
    19     not have probable cause for his action.
    20         (4)  The primary purpose for which the proceedings were
    21     brought was not that of securing the proper discovery,
    22     joinder of parties or adjudication of the claim on which the
    23     proceedings were based.
    24         (5)  The [plaintiff] aggrieved party has suffered damages
    25     as set forth in section 8353 (relating to damages).
    26     Section 4.  Title 42 is amended by adding a section to read:
    27  § 8355.  Procedure.
    28     (a)  Commencement.--
    29         (1)  In actions before a district justice or arbitration
    30     panel, the aggrieved party may make an oral application for
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     1     wrongful use determination at the close of the trial in the
     2     presence of all parties and the tribunal. The district
     3     justice or panel shall note the application on an
     4     adjudication form bearing the decision in the aggrieved
     5     party's favor.
     6         (2)  In actions tried before a jury, the aggrieved party
     7     may make oral application after the rendering of the verdict
     8     in his favor and prior to the jury's dismissal. The
     9     application shall be made part of the record.
    10         (3)  In actions tried before a judge without a jury, the
    11     aggrieved party may make an oral application at the close of
    12     trial prior to adjournment. The application shall be made
    13     part of the record.
    14         (4)  In actions terminated in the aggrieved party's favor
    15     prior to an adjudication, an oral application may be made by
    16     the aggrieved party upon termination in his favor and shall
    17     be made part of the record.
    18         (5)  In actions terminated in the aggrieved party's favor
    19     prior to trial, the aggrieved party may make a written
    20     application to the court within five days of termination.
    21     (b)  Procedure after application.--
    22         (1)  The aggrieved party must file a written statement of
    23     claims in the original action against the plaintiff or other
    24     person involving the basis for initiation of wrongful use
    25     action and damages sustained within seven days of making
    26     application under subsection (a).
    27         (2)  Within seven days after service of the statement of
    28     claims under paragraph (1), the respondent must file a
    29     written answer.
    30         (3)  Within 14 days after service of answer under
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     1     paragraph (2), the parties must provide all information
     2     requested and discoverable under the Pennsylvania Rules of
     3     Civil Procedure, unless otherwise ordered by the court upon
     4     good cause shown.
     5         (4)  Unless otherwise ordered by the court for good cause
     6     shown, failure of a party to file a statement or answer or
     7     provide discovery within the time limits set forth in
     8     paragraphs (1) through (3) shall result in the entry of
     9     judgment for the nondefaulting party. If the defaulting party
    10     was not the plaintiff in the original action, the issue of
    11     damages sustained by the aggrieved party shall be heard by
    12     the tribunal that terminated the underlying suit in the
    13     aggrieved party's favor.
    14         (5)  Hearings under this subsection shall be conducted
    15     before the tribunal that terminated the underlying suit in
    16     the aggrieved party's favor within 45 days of termination
    17     unless extended by order of court upon good cause shown.
    18     Hearings shall follow the Pennsylvania Rules of Civil
    19     Procedure pertaining to trials to the extent possible:
    20             (i)  If the tribunal that terminated in the aggrieved
    21         party's favor utilizes a jury, the jury shall be
    22         reconstituted for the hearing under this paragraph. The
    23         court shall appoint a special master to preside over the
    24         conduct of the hearing and rule on evidentiary and
    25         procedural questions. Jurors shall be paid $35 per day
    26         for each day of the hearing. Special masters shall be
    27         paid $150 per day.
    28             (ii)  If the tribunal that terminated in the
    29         aggrieved party's favor was an arbitration panel, the
    30         panel shall be reconstituted for the hearing. Each
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     1         panelist shall be paid $100 per day for each day of
     2         hearing.
     3             (iii)  If the tribunal that terminated in the
     4         aggrieved party's favor was a judge or district justice,
     5         that judge or district justice shall conduct the hearing.
     6         An administrative fee of $300 shall be paid by the
     7         aggrieved party bringing the wrongful use action prior to
     8         the hearing.
     9         (6)  The tribunal shall submit a written determination on
    10     the issues before it within three days after completion of
    11     the hearing.
    12     (c)  Posthearing process.--
    13         (1)  Exceptions to written determinations by tribunals
    14     shall be taken in accordance with the Pennsylvania Rules of
    15     Civil Procedure pertaining to posttrial motions. Failure to
    16     file an exception in the nature of a posttrial motion within
    17     the time prescribed shall constitute a waiver of any right to
    18     posttrial relief.
    19         (2)  If no exceptions are taken, or when all posthearing
    20     issues are finally resolved, the prevailing party in the
    21     wrongful use action may have any determination entered as a
    22     judgment against the nonprevailing party.
    23         (3)  Execution on, and satisfaction of, a judgment under
    24     this paragraph shall be in accordance with the Pennsylvania
    25     Rules of Civil Procedure.
    26     Section 5.  This act shall apply to actions in which the
    27  underlying action is commenced on or after the effective date of
    28  this act.
    29     Section 6.  This act shall take effect immediately.

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