813 EDA 2023
Pa. Super. Ct.Dec 7, 2023Background
- 535 Penn Investments, LLC filed a Complaint for Confession of Judgment against Delaware Steel for unpaid rent under a commercial lease; judgment of $175,370.36 was entered by the Prothonotary.
- The complaint relied on the Lease and attached a Notice of Default dated September 3, 2020, sent "via email and regular U.S. mail" to Lisa Goldberg and an email address.
- The Lease required written notices to be sent by certified/registered mail (return receipt requested) or by commercial overnight carrier and to be addressed to a specified addressee (Attention: Jerald Brownstein).
- Delaware Steel filed a Verified Petition to Strike (alternatively to Open) the confessed judgment, arguing the Notice of Default failed to comply with the Lease’s notice provisions (wrong delivery method and wrong addressee).
- The trial court found the notice defective on the face of the record, struck the confessed judgment, and denied 535 Penn’s reconsideration; 535 Penn appealed.
- On appeal 535 Penn focused on holdover rent arguments but did not contest the notice defect; the Superior Court affirmed the order striking the confessed judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Appealability of order striking judgment | Not directly argued | Order ends the litigation and is appealable | Order was final and appealable as of right |
| Compliance with Lease notice requirements | Notice sent via email and regular mail (and plaintiff emphasized holdover liability) | Notice failed Lease: not sent by certified/registered mail or overnight carrier and wrong addressee | Notice was defective; fatal defect on face of record; judgment stricken |
| Standard for reviewing petition to strike confessed judgment | (implicit) judgment should stand absent meritless defense | Confessions are disfavored; strict review; court may only examine original record | Court applied strict standard and struck judgment for facial defect |
Key Cases Cited
- Cintas Corp. v. Lee’s Cleaning Servs., Inc., 700 A.2d 915 (Pa. 1997) (on motion to strike, court may only look at what was in the record when judgment was entered)
- Resolution Trust Corp. v. Copley Qu-Wayne Assocs., 683 A.2d 269 (Pa. 1996) (petition to strike operates as a demurrer; only fatal defects or irregularities on the face of the record justify striking)
- Dominic’s Inc. v. Tony’s Famous Tomato Pie Bar & Restaurant, Inc., 214 A.3d 259 (Pa.Super. 2019) (confession-of-judgment provisions are disfavored and reviewed strictly)
- Neducsin v. Caplan, 121 A.3d 498 (Pa.Super. 2015) (original record for review consists of complaint and attached exhibits)
- Beckett v. Laux, 577 A.2d 1341 (Pa.Super. 1990) (law does not favor confession of judgment provisions)
- Ferrick v. Bianchini, 69 A.3d 642 (Pa.Super. 2013) (standard of review for petition to strike: abuse of discretion or error of law)
- UPS v. Hohider, 954 A.2d 13 (Pa.Super. 2008) (order striking a judgment is appealable when it ends the existing litigation)
- Bailey v. RAS Auto Body, Inc., 85 A.3d 1064 (Pa.Super. 2014) (court may inquire sua sponte into appealability)