City of Philadelphia v. David J. Lane Advertising, Inc.
2011 Pa. Commw. LEXIS 510
| Pa. Commw. Ct. | 2011Background
- City of Philadelphia sued Lane Advertising, Inc. and Lane personally for unpaid wage taxes for 1988–1989 under the Philadelphia Wage and Net Profits Tax Ordinance.
- Defendants were served in May 1999 but did not plead within 20 days, and a 10‑Day Notice regarding default was sent November 17, 1999.
- Default judgment was entered December 2, 1999, prior to the arbitration hearing scheduled for December 24, 1999.
- In 2009 the City began collection efforts; Lane and counsel moved to strike the default judgment in November 2009.
- Lane argued multiple defects, including flawed 10‑Day Notice, misleading notices, laches, and lack of personal liability allegations.
- Common Pleas Court denied the petition; Lane appealed, and the Superior Court transferred for disposition.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 10‑Day Notice complied with Rule 237.5 substantially. | Lane contends notice was not substantially in form; it lacked specific reasons for default. | City maintains the notice was substantially in the old form and adequate to trigger action. | The City's notice failed to include the specific reasons for default required by Rule 237.5; defect fatal, default struck. |
| Whether other defects (misleading notices, laches, personal liability, arbitration) sustain relief. | Lane raises additional defects in notices and claims. | City argues defects are not fatal beyond Rule 237.1/237.5 failure. | Additional grounds not necessary to address; court relies on fatal Rule 237.1/237.5 defect to strike the judgment. |
Key Cases Cited
- Erie Ins. Co. v. Bullard, 839 A.2d 383 (Pa. Super. 2003) (facial defect in Rule 237.1 notice voids default judgment)
- PennWest Farm Credit, ACA v. Hare, 600 A.2d 213 (Pa. Super. 1991) (strict compliance required for default judgments)
- Cintas Corp. v. Lee's Cleaning Servs., Inc., 700 A.2d 915 (Pa. 1997) (service defects to default judgments evaluated for fatality)
- Franklin Interiors, Inc. v. Browns Lane, Inc., 323 A.2d 226 (Pa. Super. 1974) (default judgment entered with lack of strict procedural compliance is void)
- Township of Chester v. Steuber, 456 A.2d 669 (Pa. Cmwlth. 1983) (Old Form 10‑Day Notice substantial compliance analysis pre‑amendment)
- Kennedy v. Black, 492 Pa. 397 (Pa. 1981) (default judgments generally disfavored; standards for relief)