THE COURTS

PART I. GENERAL

[231 PA. CODE CH. 3000]

Proposed Amendment of Rule 3111.1 et seq. Governing Exemption from Levy and Attachment; Proposed Recommendation No. 237

[38 Pa.B. 5591]
[Saturday, October 11, 2008]

   The Civil Procedural Rules Committee proposes that Rule of Civil Procedure 3111.1 et seq. governing exemption from levy and attachment be amended as set forth herein. The proposed recommendation is being submitted to the bench and bar for comments and suggestions prior to its submission to the Supreme Court of Pennsylvania.

   All communications in reference to the proposed recommendation should be sent no later than November 26, 2008 to:

Karla M. Shultz, Esquire
Counsel
Civil Procedural Rules Committee
5035 Ritter Road, Suite 700
Mechanicsburg, Pennsylvania 17055

or E-Mail to
civil.rules@pacourts.us

   The Explanatory Comment which appears in connection with the proposed recommendation has been inserted by the Committee for the convenience of the bench and bar. It will not constitute part of the rules of civil procedure or be officially adopted or promulgated by the Court.

Annex A

TITLE 231. RULES OF CIVIL PROCEDURE

PART I. GENERAL

CHAPTER 3000. JUDGMENTS

Subchapter D. ENFORCEMENT OF MONEY JUDGMENTS FOR THE PAYMENT OF MONEY

Rule 3111.1.  Exemptions from levy and attachment.

   In the absence of a court order, service of the writ upon a bank or other financial institution as garnishee shall not attach

   (1)  [any of the defendant's funds on deposit with the bank or other financial institution in an account in which (1)] the first $10,000 of each account of the defendant containing any funds which are deposited electronically on a recurring basis and are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or federal law, [or]

   Official Note:  See Rule 3146(b)(2) governing judgment against a bank or other financial institution as garnishee upon admission in answer to interrogatory.

   (2)  each account in which funds on deposit exceed $10,000 at any time if all funds are deposited electronically on a recurring basis and are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or federal law, and

   (3)  the funds on deposit, not including any otherwise exempt funds, that do not exceed the amount of the general monetary exemption under 42 Pa.C.S. § 8123. The plaintiff shall have the right to file an objection if the plaintiff believes that the defendant has exhausted the statutory exemptions.

Rule 3140.  Notice by garnishee.

   (a)(1)  Upon being served with the writ, the garnishee shall [promptly] within two business days forward a copy to the defendant.

   (2)  In addition to compliance with the requirements of Rule 3144, a garnishee which is a bank or other financial institution shall within two business days forward to the defendant and to the plaintiff a copy of the statement of accounts attached showing

   (i)  each account of the defendant having funds which have been attached and the amount of the funds in each account, and

   (ii)  each account of the defendant having funds which have not been attached because the account contains funds which are exempt under Rule 3111.1(1), the basis for the exemption of those funds, and the total amount of funds in each account.

   Official Note:  A garnishee which is a bank will send to the defendant copies of both the writ and the statement of accounts attached, but to the plaintiff only a copy of the statement of accounts attached.

   (b) Upon filing his answer to interrogatories pursuant to Rule 3144 the garnishee shall promptly forward a copy to the defendant.

*      *      *      *      *

Rule 3141.  Garnishee's duty to defend; venue of proceedings.

   (a)  [A] Except as provided in Rule 3111.1, a garnishee who forwards copies of the writ and answers to interrogatories to the defendant shall thereafter be under no duty to resist the attachment or defend the action against the defendant in any manner but may do so as provided by these rules.

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Subchapter E. ENFORCEMENT OF JUDGMENTS IN SPECIAL ACTIONS

FORMS

Rule 3253. Interrogatories in attachment.

   Interrogatories of the plaintiff to the garnishee shall be substantially in the following form:

[Caption]
Interrogatories to Garnishee

"To _________________ :
(Garnishee)

   "You are required to file answers to the following interrogatories within twenty (20) days after service upon you. Failure to do so may result in judgment against you:

*      *      *      *      *

   7.  If you are a bank or other financial institution, at the time you were served or at any subsequent time did the defendant have funds on deposit in an account in which funds are deposited electronically on a recurring basis and which are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or federal law? If so, identify each account and state the amount of funds in each account, the reason for the exemption, [the amount being withheld under each exemption] and the entity electronically depositing those funds on a recurring basis.

*      *      *      *      *

Explanatory Comment

   New Rule 3111.1 was promulgated in 2007 to address the failure of the rules of civil procedure to protect funds held in accounts of banks and other financial institutions that are exempt from execution, levy, and attachment pursuant to federal and state legislation. The current rule protects from attachment all funds in an account in which any funds are deposited electronically on a recurring basis and are identified as being funds that upon deposit are exempt from execution, levy, or attachment. The amendment to subdivision (1) of Rule 3111.1 provides that only the first $10,000 held in an account may not be attached whenever the account includes any funds that are identified as being exempt from execution, levy, or attachment. If an account holder believes the remainder is also exempt, he or she may petition the court for relief. Under new subdivision (2) any funds that exceed $10,000 in an account may be attached unless all funds in the account are identified as exempt funds.

By the Civil Procedural Rules Committee

STEWART L. KURTZ,   
Chair

[Pa.B. Doc. No. 08-1836. Filed for public inspection October 10, 2008, 9:00 a.m.]

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