PRIOR PRINTER'S NO. 1199 PRINTER'S NO. 1324
No. 1076 Session of 1995
INTRODUCED BY MERRY, SCHRODER, PISTELLA, BARD, HENNESSEY, CURRY,
SANTONI, WOZNIAK, PETTIT, FEESE AND WALKO, MARCH 8, 1995
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 15, 1995
AN ACT
1 Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An
2 act providing when, how, upon what property, and to what
3 extent, liens shall be allowed for taxes and for municipal
4 improvements, for the removal of nuisances, and for water
5 rents or rates, sewer rates, and lighting rates; for the
6 procedure upon claims filed therefor; the methods for
7 preserving such liens and enforcing payment of such claims;
8 the effect of judicial sales of the properties liened; the
9 distribution of the proceeds of such sales, and the
10 redemption of the property therefrom; for the lien and
11 collection of certain taxes heretofore assessed, and of
12 claims for municipal improvements made and nuisances removed,
13 within six months before the passage of this act; and for the
14 procedure on tax and municipal claims filed under other and
15 prior acts of Assembly," providing for attorney fees in
16 actions involving municipal claims.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Section 3(a) of the act of May 16, 1923 (P.L.207,
20 No.153), referred to as the Municipal Claim and Tax Lien Law,
21 amended December 19, 1990 (P.L.1092, No.199), is amended and the
22 section is amended by adding subsections to read:
23 Section 3. (a) All municipal claims which may hereafter be
24 lawfully imposed or assessed on any property in this
1 Commonwealth, and all such claims heretofore lawfully imposed or
2 assessed within six months before the passage of this act and
3 not yet liened, in the manner and to the extent hereinafter set
4 forth, shall be and they are hereby declared to be a lien on
5 said property, together with all charges, expenses, and fees
6 incurred in the collection of any delinquent account, including
7 reasonable attorney fees, added thereto for failure to pay
8 promptly; and said liens shall arise when lawfully imposed and
9 assessed and shall have priority to and be fully paid and
10 satisfied out of the proceeds of any judicial sale of said
11 property, before any other obligation, judgment, claim, lien, or
12 estate with which the said property may become charged, or for
13 which it may become liable, save and except only the costs of
14 the sale and of the writ upon which it is made, and the taxes
15 imposed or assessed upon said property.
16 (a.1) The award of attorney fees shall be in an amount <--
17 sufficient to compensate attorneys undertaking collection and
18 representing a municipality in actions arising under this act as
19 provided in subsection (a). In determining the amount of the
20 fee, the court may consider:
21 (1) The time and labor required, the novelty and difficulty
22 of the questions involved and the skill requisite to properly
23 conduct the case.
24 (A.1) ATTORNEY FEES INCURRED IN THE COLLECTION OF ANY <--
25 DELINQUENT ACCOUNT SHALL BE IN AN AMOUNT SUFFICIENT TO
26 COMPENSATE ATTORNEYS UNDERTAKING COLLECTION AND REPRESENTATION
27 OF A MUNICIPALITY IN ACTIONS INVOLVING CLAIMS ARISING UNDER THIS
28 ACT AS PROVIDED IN SUBSECTION (A). IN THE EVENT A DELINQUENT
29 PROPERTY OWNER CHALLENGES THE AMOUNT OF THE ATTORNEY FEE, THE
30 COURT SHALL CONSIDER, BUT NOT BE LIMITED TO, THE FOLLOWING:
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1 (1) THE TIME AND LABOR REQUIRED, THE NOVELTY AND DIFFICULTY
2 OF THE QUESTIONS INVOLVED AND THE SKILL REQUISITE TO PROPERLY
3 UNDERTAKE COLLECTION AND REPRESENTATION OF A MUNICIPALITY IN
4 ACTIONS ARISING UNDER SUBSECTION (A).
5 (2) The customary charges of the members of the bar for
6 similar services.
7 (3) The amount involved in the controversy and the benefits
8 resulting to the client or clients from the services.
9 (4) The contingency or the certainty of the compensation.
10 (a.2) Any time attorney fees are awarded pursuant to any
11 provision of law, the municipality shall not be entitled to
12 duplicate recovery of attorney fees under this section.
13 (a.3) At least thirty days prior to any imposition or
14 assessment of attorney fees in accordance with this section, the
15 municipality shall notify the owner by first class mail of:
16 (1) The municipality's intent to impose or assess attorney
17 fees.
18 (2) The manner in which the imposition or assessment of
19 attorney fees may be avoided by payment of the delinquent
20 account.
21 (3) A statement of the fixed fees and hourly rate or rates
22 to be applied in computing the amount of attorney fees which may
23 be imposed or assessed.
24 * * *
25 Section 2. Section 8 of the act, amended July 28, 1953 <--
26 (P.L.678, No.212), is amended to read:
27 Section 8. Where claims are to be filed to use, or in any
28 case where a municipality will seek to recover attorney fees in
29 accordance with section 3, the claimant, at least one month
30 before the claim is filed, shall serve a written notice of his
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1 intention to file it unless the amount due is paid. Service of
2 such notice may be made personally on the owner wherever found,
3 but if he cannot be served in the county where the property is
4 situated, such notice may be served on his agent or the party in
5 possession of the property; and if there be no agent or party in
6 possession, it may be posted on the most public part of the
7 property.
8 The provisions of this section shall not apply if the use-
9 plaintiff is a city, borough, or township to which a municipal
10 claim of a municipal authority organized by a city of the second
11 class, by a county of the second class or by a city of the third
12 class has been assigned or sold, as provided in section four of
13 this act, and the procedure for filing, reviving and enforcing
14 liens for such assigned claim shall be the same as is provided
15 in this act for filing, reviving and enforcing liens based on
16 such use-plaintiff's own municipal claims.
17 Section 3 2. Sections 19 and 20 of the act are amended to <--
18 read:
19 Section 19. If no affidavit of defense be filed within the
20 time designated, judgment may be entered and damages assessed by
21 the prothonotary by default, for want thereof. Such assessment
22 shall include a [five per cent] fee for collection to
23 plaintiff's attorney in accordance with section 3.
24 If an affidavit of defense be filed, a rule may be taken for
25 judgment for want of sufficient affidavit of defense, or for so
26 much of the claim as is insufficiently denied, with leave to
27 proceed for the residue.
28 The defendant may, by rule, require the plaintiff to reply,
29 under oath or affirmation, to the statements set forth in the
30 affidavit of defense, and after the replication has been filed
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1 may move for judgment on the whole record.
2 Section 20. Tax claims and municipal claims shall be prima
3 facie evidence of the facts averred therein in all cases; and
4 the averments in both tax and municipal claims shall be
5 conclusive evidence of the facts averred therein, except in the
6 particulars in which those averments shall be specifically
7 denied by the affidavit of defense, or amendment thereof duly
8 allowed. A compulsory nonsuit, upon trial, shall be equivalent
9 to a verdict for defendant, whether the plaintiff appeared or
10 not. If plaintiff recovers a verdict, upon trial, in excess of
11 the amount admitted by the defendant in his affidavit of defense
12 or pleadings, he shall be entitled to [an attorney's fee]
13 attorney fees for collection[, equal to five per centum of such
14 excess, but not exceeding fifty dollars] in accordance with
15 section 3.
16 Section 4 3. This act shall take effect in 60 days. <--
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