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PA Bulletin, Doc. No. 03-1978

THE COURTS

Title 246--MINOR COURT CIVIL RULES

PART I.  GENERAL

[246 PA. CODE CH. 400]

Clarification Regarding Distribution of Proceeds of Sale

[33 Pa.B. 5076]

   The Minor Court Rules Committee is planning to recommend that the Supreme Court of Pennsylvania amend Rule 416 of the Rules of Conduct, Office Standards and Civil Procedure for District Justices to clarify that an executing officer shall distribute the proceeds of a sale directly to the party or parties entitled to receive the proceeds. The Committee has not submitted this proposal for review by the Supreme Court of Pennsylvania.

   The following explanatory Report highlights the Committee's considerations in formulating this proposal. The Committee's Report should not be confused with the Committee's Official Notes to the rules. The Supreme Court does not adopt the Committee's Official Notes or the contents of the explanatory reports.

   The text of the proposed changes precedes the Report. Additions are shown in bold; deletions are in bold and brackets.

   We request that interested persons submit suggestions, comments, or objections concerning this proposal to the Committee through counsel,

Michael F. Krimmel, Counsel
Supreme Court of Pennsylvania
Minor Court Rules Committee
5035 Ritter Road, Suite 700
Mechanicsburg, PA 17055
Fax 717-795-2175
or e-mail to: minorrules@pacourts.us

no later than Monday, November 17, 2003.

By the Minor Court Rules Committee

THOMAS E. MARTIN, Jr.,   
Chair

Annex A

TITLE 246.  MINOR COURT CIVIL RULES

PART I.  GENERAL

CHAPTER 400.  EXECUTION OF JUDGMENTS FOR THE PAYMENT OF MONEY

Rule 416.  Distribution of Proceeds. Priorities.

   A.  Not later than five [(5)] days after the sale of personal property the officer executing the order shall prepare a proposed schedule of [proposed] distribution of the proceeds of sale which shall be kept on file in the office of the district justice from which the order issued and shall be available for inspection. No schedule of distribution need be filed when the property is sold to the plaintiff for costs only.

   B.  When a receipt of the plaintiff has been accepted on account of the purchase price, the schedule shall set forth [his] the plaintiff's name and address, the amount of [his] the judgment and the amount of credit claimed or allowed upon the purchase price.

   C.  [The officer executing the order shall distribute the proceeds of the sale in accordance with the proposed schedule of distribution unless written exceptions are filed in the office of the district justice from which the order issued not later than ten (10) days after the filing of the proposed schedule.] Unless written exceptions are filed in the office of the district justice from which the order issued not later than ten days after the filing of the proposed schedule of distribution, the officer executing the order shall distribute the proceeds of the sale directly to the party or parties entitled to receive the proceeds in accordance with the proposed schedule.

*      *      *      *      *

REPORT

Proposed Amendment to Rule 416 of the Rules of Conduct, Office Standards and Civil Procedure for District Justices

CLARIFICATION REGARDING DISTRIBUTION OF PROCEEDS OF SALE

   The Minor Court Rules Committee (hereinafter the Committee) undertook a review of Pa. R.C.P.D.J. No. 416 (Distribution of Proceeds. Priorities.) in response to an inquiry about who is to distribute the proceeds of a sale of personal property held in accordance with an order of execution. The Committee learned that some executing officers (sheriffs and constables) are forwarding the proceeds of the sale to the district justice court for distribution. The Committee believes that the appropriate procedure, and the intent of Rule 416C, is for the executing officer to distribute the proceeds of the sale directly to the party or parties entitled to receive the proceeds. The Committee noted that the district justice has very limited direct involvement in the execution process beyond the issuance of the order of execution and the determination of property claims and disputes, if any.1 Importantly, the Committee believes that there is no specific accounting mechanism in the district justice courts to receive, account for, and distribute the proceeds of a sale.

   Accordingly, the Committee proposes that Rule 416C be amended to further clarify that ''the officer executing the order shall distribute the proceeds of the sale directly to the party or parties entitled to receive the proceeds.'' In addition, the Committee proposes minor technical or ''housekeeping'' amendments to the Rule to address gender neutrality and to conform to modern drafting style.

[Pa.B. Doc. No. 03-1978. Filed for public inspection October 10, 2003, 9:00 a.m.]

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1  See generally Pa.R.C.P.D.J. Nos. 401--482 (relating to execution of judgments for the payment of money).


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