THE COURTS
Title 246--MINOR COURT CIVIL RULES
PART I. GENERAL
[246 PA. CODE CH. 400]
Order Amending Rule 416 of the Rules of Conduct, Office Standards and Civil Procedure for District Justices; No. 211 Magisterial Doc. No. 1
[34 Pa.B. 6131] The Minor Court Rules Committee has prepared a Final Report explaining the amendments to Rule 416 of the Rules of Conduct, Office Standards and Civil Procedure for District Justices, effective January 1, 2005. These rule changes provide clarification regarding the distribution of proceeds of a sale. The changes also provide for technical or ''housekeeping'' amendments to the rule. The Final Report follows the Court's Order.
Order Per Curiam:
And Now, this 26th day of October, 2004, upon the recommendation of the Minor Court Rules Committee; the proposal having been published before adoption at Volume 33, Pennsylvania Bulletin, page 5076 (October 11, 2003), and a Final Report to be published with this Order:
It Is Ordered pursuant to Article V, Section 10 of the Constitution of Pennsylvania that Pa.R.C.P.D.J. No. 416 is amended in the following form.
This Order shall be processed in accordance with Pa.R.J.A. No. 103(b), and shall be effective January 1, 2005.
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.
* * * * * Official Note: Subdivision C makes clear that it is the responsibility of the executing officer to distribute the proceeds of the sale directly to the party or parties entitled to receive the proceeds. The executing officer should segregate from personal funds, hold in escrow, and ensure the safekeeping of any proceeds held prior to distribution.
Compare Pa.R.C.P. No. 3136(a), (b), (d)[;], and 3137(a). Subdivision D of this rule bases the determination of priorities on the diligence of the plaintiffs and recognizes that there may be more than one executing officer in some instances. It differs from Rule 3137(a) under which priorities are based on the time of delivery of the writs of execution to the sheriff, since it was thought that priorities should not depend upon the time of transmission of the order of execution from the district justice to the executing officer.
FINAL REPORT1
Amendment to Rule 416 of the Rules of Conduct, Office Standards and Civil Procedure for District Justices
Clarification Regarding Distribution of Proceeds of Sale On October 26, 2004, effective January 1, 2005, upon recommendation of the Minor Court Rules Committee,2 the Supreme Court of Pennsylvania amended Rule 416 of the Rules of Conduct, Office Standards and Civil Procedure for District Justices.3
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.4 Importantly, the Committee believes that there is no specific accounting mechanism in the district justice courts to properly receive, account for, and distribute the proceeds of a sale.
Accordingly, the Committee recommended 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 recommended wording in the Official Note to further clarify the executing officer's responsibilities, including segregating from personal funds, holding in escrow, and ensuring the safekeeping of any proceeds held prior to distribution. Finally, the Committee recommended minor technical or ''housekeeping'' amendments to the Rule to address gender neutrality and to conform to modern drafting style.
[Pa.B. Doc. No. 04-2023. Filed for public inspection November 12, 2004, 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 Recommendation No. 2 Minor Court Rules 2004.
3 Supreme Court of Pennsylvania Order No. 211, Magisterial Docket No. 1, (October 26, 2004).
4 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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