Pa. Company Off the Hook for Foreign Judgment, Appeals Court Rules
The state Superior Court has ruled that a default judgment against a Pennsylvania company rendered by a New Hampshire court was void because of a lack of a certificate required under the Pennsylvania Uniform Enforcement of Foreign Judgments Act.
December 05, 2019 at 10:28 AM
3 minute read
In a case of first impression, the state Superior Court has ruled that a default judgment against a Pennsylvania company rendered by a New Hampshire court was void because of a lack of a certificate required under the Pennsylvania Uniform Enforcement of Foreign Judgments Act.
In Domus v. Signature Building Systems of PA, a three-judge appellate panel reversed a Lackawanna County trial judge's ruling upholding a default judgment against defendant Signature Building Systems of PA for failing to respond to plaintiff Domus Inc.'s New Hampshire-based contract lawsuit.
Domus, which was involved in a residential construction project at Dartmouth College, contracted with Signature to provide modular units, which the plaintiff later claimed were defective, according to Superior Court Judge Mary Jane Bowes' opinion.
A lawyer for Signature entered an appearance in the New Hampshire court, but withdrew soon thereafter. Signature claimed this was because the action was brought in violation of an arbitration clause.
Still, the New Hampshire court rendered a default judgment against the company, which, after interest, amounted to roughly $314,000. According to Bowes, Domus sought enforcement of the judgment in Pennsylvania and the Lackawanna trial court subsequently denied Signature's motion to strike its enforcement.
On appeal to the Superior Court, Signature maintained that Domus failed to provide a properly authenticated judgment under the UEFJA. The question specifically centered on whether the failure to attach a certificate pursuant to 42 Pa.C.S. Section 5328 prevented enforcement.
"The issue of whether the lack of this certificate under Section 5328(a) is fatal for the purposes of authentication under the UEFJA appears to be an issue of first impression, and our review of the relevant case law has uncovered no opinions squarely on point," Bowes said. "However, the statutory language of the UEFJA predicates the co-equal treatment of foreign judgments in Pennsylvania upon complete adherence to these authentication procedures."
Bowes added that Superior Court precedent holds that the requirements of the state UEFJA are not discretionary, thus requiring a strict interpretation of the statutes provisions.
"Domus' failure to attach a certification pursuant to either Section 1738 or Section 5328(a) undermines its attempts to authenticate the New Hampshire default judgment pursuant to the UEFJA," Bowes said. "As a result of this deficiency, the Pennsylvania trial court lacked jurisdiction from the inception of Domus' efforts to enforce the New Hampshire judgment in Pennsylvania. Therefore, the trial court committed an error of law in not striking the foreign judgment because a fatal defect appears upon the face of the record."
Domus is represented by Drew Salaman of Salaman Henry in Philadelphia, who declined to comment.
Signature's attorney, Dunmore-based Michael Mey, did not return a call seeking comment on the ruling.
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