Thursday, October 21, 2021

LT - security deposits - application of deposit to offset judgment - MDJ rules

Rules                          https://www.pacourts.us/assets/opinions/Supreme/out/Attachment%20-%20104930189149616719.pdf?cb=1


Adoption report       https://www.pacourts.us/assets/opinions/Supreme/out/Report%20-%20104930189149616914.pdf?cb=1


Order                         https://www.pacourts.us/assets/opinions/Supreme/out/Order%20Entered%20-%20104930189149616582.pdf?cb=1

 

Effective date January 1, 2022

 

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Editor’s note: The official note (below) covers many provisions of MDJ Rule 514, including the new ones about security deposits. It is definitely worth reading the entire note.


Official Note


Subdivision A of this rule requires that the landlord appear and give testimony to prove the complaint before the magisterial district judge can enter judgment against the tenant, even when the tenant fails to appear for the hearing. The magisterial district judge shall not enter a default judgment in a possessory action, including a judgment for money only. See Rule 512A and Note. The various issues that the magisterial district judge must determine at the hearing include: whether notice to quit was given to the tenant in accordance with law or that no notice was required under the terms of the lease; the amount or rent due, if any; damages to the leasehold premises, if any; the amount found to constitute the monthly rental; and, the amount of the security deposit held by the landlord, if any. 


As to the notice to quit requirement, see Section 501 of the Landlord and Tenant Act of 1951, 68 P.S. § 250.501. See also Patrycia Bros., Inc. v. McKeefrey, 38 Pa. D. & C.2d 149 (Delaware County C.P. 1966). 


The separate entries provided in subdivision A are made necessary as a result of the rental deposit provisions for appeal or certiorari contained in Rules 1008B and 1013B, as well as the wage attachment provisions contained in Section 8127 of the Judicial Code, 42 Pa.C.S. § 8127. 


If the magisterial district judge permits a security deposit held by the landlord to be used as an offset against a monetary judgment, the amount of the security deposit so applied must be identified as such on the judgment form. There are limited circumstances when application of the security deposit to offset a monetary judgment is appropriate, such as when the tenant has already left the property, the landlord has had the opportunity to inspect the property, both parties have appeared before the magisterial district judge, and the parties agree that the security deposit should be used to offset the judgment. For additional requirements regarding the return of a security deposit, including the provision of a list of damages and remission of the deposit less the cost of damages within 30 days of termination of the lease or upon surrender and acceptance of the leasehold premises, see Section 512 of the Landlord and Tenant Act of 1951, 68 P.S. § 250.512. 


Subdivision [B] C of this rule [makes provision] provides for a money judgment for the tenant if the tenant prevails in a greater amount on the tenant's cross-complaint. 


Subdivision [D] E of this rule provides for certain notices the magisterial district court shall include in the written notice of judgment or dismissal. 


Subdivision [D] E(2) reflects that the appeal period for a victim of domestic violence in a case arising out of a residential lease is 30 days. See Rule 1002B(2); see also 68 P.S. § 250.513. A tenant who is a victim of domestic violence may file a domestic violence affidavit with the magisterial district court to stay the execution of an order for possession until 30 days after the date of entry of the judgment, the filing of an appeal with the court of common pleas pursuant to Rule 1002, or by order of the court of common pleas, whichever is earlier. See Rule 514.1. 

As to subdivision [D(2)] E(3)see Rule 402D and Note. As to subdivision [D(3)] E(4)see Rule 341.