Lowest Court “Judgment” to Execute on Real Property?

Pittsburgh lawyerOur Pittsburgh attorneys often get asked:  I won in small claims court (before a magisterial district judge), so now how do I enforce it against the defendant’s real property?  First of all, before you can do anything, the opposing party has thirty days to appeal.  Then, the local magistrate’s decision — or award (if money had been awarded) — becomes unappealable, but it’s not a “judgment.”  In fact, there’s no such thing as a “judgment” in small claims court.  Forget what the “forms” say.  

The Small Claims Court Decisions Mean (Next to) Nothing

At this level, the decision — by itself — is merely an “award,” which has little “teeth.” For example, “No execution against real estate shall be issued by a magisterial district judge.” See title 42 § 1516 (Lien of judgment). In theory, a small claims court award could be used execute on personal property, such as clothing or a vehicle. However, for the award to trigger the power of the County Sheriff — to seize property — the award must be entered on the county docket to have any real effect, which is simply a matter of paperwork, but you have to get the paperwork right. Here’s the rule:    

§ 1516.  Lien of judgment.

A judgment of a magisterial district judge shall not operate as a lien on real property until a transcript of the record showing a final judgment of a magisterial district judge has been filed in the manner prescribed by general rules in the office of the clerk of the court of common pleas of the county where the property is situated, or in the office of the clerk of the branch of the court of common pleas embracing such county.

What Does All That Mean? 

It means you should have a brief consultation with an attorney.  Seriously, you need to make sure you’re entering the judgment correctly. It’s not labor intensive. For lawyers, it’s mostly “forms.” But it gives you substantial leverage to collect on the judgment:    

After such entry the judgment shall, from the date of such entry, be a lien upon real property to the same extent that judgment recovered in the court of common pleas is a lien. No such transcript shall be filed until after 30 days after the entry of final judgment by the magisterial district judge. (Nov. 30, 2004, P.L.1618, No.207, eff. 60 days; Aug. 11, 2009, P.L.147, No.33, eff. 60 days)

Just think about that: entering a judgment in the county where the defendant owns properly automatically operates as a lien on real property.  In fact, in Allegheny County, the sheriff will contact if you the property becomes executed upon by someone else, meaning, if the property is up for a sheriff sale.

The Power of a Judgment Lien 

This is a powerful lien.  It can be used to force the sale of property against the owner’s will.  It’s unlike a mere “mechanic’s lien,” such as when a property owner fails to pay a contractor who takes a “mechanic’s lien” against the property for the value of his improvement. There, the lien merely rides with the property until it’s sold by the owner, but it cannot be used to force the sale of it.  

Defenses to Enforcement of a County Judgment 

Our Pittsburgh attorneys have written about the numerous defenses to enforcement of a judgment in Pennsylvania. But one of the common pitfalls to enforcement — which we have not discussed — involves naming the incorrect party on your judgment. 

Granted, the courts will often let you amend your judgment. Let’s say you misspelled the judgment debtor’s name “Smith” as “Smth.”  Or, you utilized the Defendant’s wrong middle initial: a “P” instead of “F.”  No problem.

However, it’s a different story if your judgment is against the wrong person or entity. For example, let’s say you’re suing a home improvement contractor:  Smith Contracting. His assets are owned by “Smith Contracting LLC,” but you sued “Smith Contracting Incorporated” — a separate and different entity. There, a court may not permit the amendment of your judgment, because it would bring a new and different party into the case, post-judgment, depriving it of its due process rights.    

Debt Collectors Beware 

Our Pittsburgh lawyers often defend debt collection matters filed at the lowest level.  For example, if our client is sued at this level for non-payment of credit card debt, we tell them to not even show up!  Just plan to appeal.  This is especially true when the Bank or Credit Card company sued “John Smith, Jr.,” intending to have sued “John Smith, Sr.” 

We defend the case through the appeals, regardless, making sure we file a timely appeal, but even if we lose in the end, so what?  It will be the assets of the son, not the father, that are in jeopardy.  This may prove to be important later, if, for example, the son is married, holding his assets jointly.  There, he’s judgment proof, unless the judgment is against both husband and having jointly held assets, making him judgment proof.    

 

Contact Us Today! 

412.342.0992

A Pittsburgh lawyer at our firm is available to speak with you at your convenience! 

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