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PA Bulletin, Doc. No. 14-1192

THE COURTS

Title 246—MINOR
COURT CIVIL RULES

PART I. GENERAL

[ 246 PA. CODE CH. 300 ]

Order Adopting Rule 320 of the Rules of Civil Procedure Governing Actions and Proceedings before Magisterial District Judges; No. 368 Magisterial Doc.

[44 Pa.B. 3310]
[Saturday, June 7, 2014]

Order

Per Curiam

 And Now, this 19th day of May, 2014, upon the recommendation of the Minor Court Rules Committee; the proposal having been published for public comment at 43 Pa.B. 5701 (September 28, 2013):

 It Is Ordered pursuant to Article V, Section 10 of the Constitution of Pennsylvania that Rule 320 of the Pennsylvania Rules of Civil Procedure Governing Actions and Proceedings before Magisterial District Judges is adopted in the following form.

 This Order shall be processed in accordance with Pa.R.J.A. No. 103(b), and shall be effective July 20, 2014.

Annex A

TITLE 246. MINOR COURT CIVIL RULES

PART I. GENERAL

CHAPTER 300. CIVIL ACTION

Rule 320. Request to Withdraw Complaint; Settlement.

 A(1) A plaintiff may withdraw the complaint prior to the commencement of the hearing by filing a written notice of withdrawal with the magisterial district court. Upon receipt of such notice, the magisterial district court shall note the withdrawal of the complaint on the docket, cancel any scheduled hearing (except for a consolidated hearing on a cross-complaint pursuant to Rule 315B), and notify the parties in writing that the complaint has been withdrawn.

 (2) A withdrawal of the complaint filed prior to the commencement of the hearing shall be deemed to be without prejudice. The plaintiff may file a new complaint on the same cause of action upon payment of all applicable fees and costs.

 B(1) The parties may file a written notice of settlement of the complaint with the magisterial district court at any time prior to the entry of judgment. Upon receipt of such notice, the magisterial district court shall note the case settled on the docket, cancel any scheduled hearing (except for a consolidated hearing on a cross-complaint pursuant to Rule 315B), and notify the parties in writing that the complaint has been marked settled.

 (2) Where the parties have filed a notice of settlement with the magisterial district court and a subsequent breach of the settlement agreement occurs, a party may file a new complaint citing breach of the settlement agreement as the cause of action.

 C(1) The withdrawal or settlement of the plaintiff's complaint shall not affect the right of the defendant to proceed with a cross-complaint filed pursuant to Rule 315A.

 (2) The defendant may file a written notice of withdrawal of the cross-complaint in the manner set forth in subdivision A.

 (3) The parties may file a written notice of settlement of the cross-complaint in the manner set forth in subdivision B.

 Official Note: A complaint filed pursuant to subparagraph A(2) or B(2) shall not be treated as a ''reinstatement'' of the underlying action, and is subject to all prescribed fees and costs for filing and service of a complaint. Compare with Rule 314E, which provides for reinstatement of the complaint under the limited circumstance of failure to make timely service.

 This rule also applies to the withdrawal or settlement of a cross-complaint. Moreover, a cross-complaint will survive the withdrawal or settlement of the corresponding complaint.

 Prior Rule 320, addressing continuances, was rescinded by Order of December 16, 2004, effective July 1, 2005, and its provisions were added to Rule 209.

FINAL REPORT1

Recommendation 1-2014, Minor Court Rules Committee

Adoption of New Rule 320 of the Pennsylvania Rules of Civil Procedure before Magisterial District Judges

Procedures for Withdrawing the Complaint or Settling An Action

 On May 19, 2014, effective July 20, 2014, upon recommendation of the Minor Court Rules Committee2 , the Supreme Court of Pennsylvania adopted new Rule 3203 of the Pennsylvania Rules of Civil Procedure before Magisterial District Judges.

I. Background and Discussion

 The Minor Court Rules Committee (''Committee'') recommended adoption of new Rule 320 of the Pennsylvania Rules of Civil Procedure before Magisterial District Judges (''Rules''). The goal of this new rule is to establish procedures for the withdrawal of complaints by plaintiffs, for recording the settlement of actions by the parties, and to clarify the effect of withdrawals and settlements on the action and any cross-complaint filed pursuant to Rule 315A.

 The Committee was advised of inconsistencies in statewide practice and uncertainty for litigants resulting from the absence of a rule based practice in the magisterial district courts for withdrawal of the complaint and recording of a settlement of the action. The Committee agreed that there should be a rule or rules providing for the withdrawal of complaints and settlement of actions. Additionally, the Committee thought it would be helpful to clarify that civil actions ended by withdrawal of the complaint or settlement by the parties are not eligible for ''reinstatement'', as that term is used in Rule 314E.4 The Committee published a proposal at Volume 43, Pennsylvania Bulletin, p. 5701 (43 Pa.B. 5701, September 28, 2013) that included such procedures.

II. Approved Rule Changes

 New Rule 320 establishes procedures for the withdrawal of complaints by plaintiffs, and settlement of actions by the parties. Rule 320A permits a plaintiff to withdraw a complaint prior to the start of the hearing upon written notice to the magisterial district court. Upon receipt of such notice, the magisterial district court notes the withdrawal on the docket, cancels the scheduled hearing (if the defendant has not filed a cross-complaint), and notifies the parties in writing. With respect to the future rights of the parties, the withdrawal of a complaint is deemed to be without prejudice, and a plaintiff may file a new complaint upon payment of all applicable fees and costs. Under no circumstances should a new complaint filed pursuant to this rule be treated as a ''reinstatement'', as that term is used in Rule 314E (i.e., the limited circumstance of failure to make timely service of the complaint).

 Similarly, Rule 320B permits the parties to file a notice of settlement with the magisterial district court at any time prior to the entry of judgment. Upon receipt of such notice, the magisterial district court notes the case settled on the docket, cancels the scheduled hearing (if the defendant has not filed a cross-complaint), and notifies the parties in writing. If a subsequent breach of the settlement agreement occurs, the party should file a new complaint citing breach of the settlement agreement as the cause of action, subject to all applicable fees and costs. Under Rule 320B(2), the original complaint may not be ''reinstated.''

 Finally, Rule 320C addresses the effect of a withdrawal or settlement of the complaint on a cross-complaint filed by the defendant, and provides instruction on the method of having a cross-complaint marked withdrawn or settled. A cross-complaint filed pursuant to Rule 315A may be ''any claim against the plaintiff that is within the jurisdiction of a magisterial district judge.'' Further, ''[s]uch a claim need not arise from the same transaction or occurrence from which the plaintiff's claim arose, nor need it be the same type of claim.'' See Rule 315A. Therefore, the withdrawal or settlement of the underlying complaint does not automatically terminate the cross-complaint. Any scheduled hearing on a cross-complaint should proceed, unless the defendant takes affirmative action to withdraw the cross-complaint, or the court is notified that the cross-complaint has been settled.

[Pa.B. Doc. No. 14-1192. Filed for public inspection June 6, 2014, 9:00 a.m.]

_______

1  The Committee's Final Report should not be confused with the Official Notes to the Rules. Also, the Supreme Court of Pennsylvania does not adopt the Committee's Official Notes or the contents of the explanatory Final Reports.

2  Minor Court Rules Committee Recommendation 1-2014.

3  A prior Rule 320, addressing continuances, was rescinded by Order of December 16, 2004, effective July 1, 2005. The provisions of prior Rule 320 were added to Rule 209 in order to have one rule containing all provisions related to continuances. The Committee recommended using number 320 for this new rule because it places the new rule in the logical procedural sequence.

4  Rule 314E provides that ''a complaint that has been dismissed without prejudice for failure to make service pursuant to subdivision D of this rule may be reinstated at any time and any number of times.''


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