In Re: for Objections & Exceptions to Upset Sale ~ Appeal of: M. Abreu ( 2023 )


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  •              IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    In Re: Petition for Objections and            :       CASES CONSOLIDATED
    Exceptions to Upset Sale                      :
    :       No. 650 C.D. 2020
    In Re: Objections and Exceptions              :
    to Upset Sale                                 :
    :
    Appeal of: Milagros Abreu                     :
    In Re: Objection and Exceptions               :
    to Upset Sale                                 :       No. 1356 C.D. 2020
    :       Submitted: July 14, 2023
    Appeal of: Milagros Abreu                     :
    BEFORE:          HONORABLE ANNE E. COVEY, Judge
    HONORABLE MICHAEL H. WOJCIK, Judge
    HONORABLE MARY HANNAH LEAVITT, Senior Judge
    OPINION
    BY SENIOR JUDGE LEAVITT                                        FILED: September 28, 2023
    Milagros Abreu (Owner) appeals an order entered by the Court of
    Common Pleas of Lehigh County (trial court), which overruled Owner’s objections
    to the upset tax sale of the property located at 742 North 9th Street, Allentown
    (Property), by the Lehigh County Tax Claim Bureau (Tax Claim Bureau).1 Owner
    challenges, inter alia, the trial court’s grant of intervention to Yosaf Saleb, the
    successful bidder on the Property. Upon review, we vacate the trial court’s order
    granting intervention and remand the matter for proceedings consistent with this
    opinion.
    1
    The matters were consolidated by order of the Court dated April 8, 2021.
    Background
    The Property was sold at an upset sale on September 20, 2017. On
    November 20, 2017, the Tax Claim Bureau filed a consolidated return, and the trial
    court confirmed the sale nisi. On December 19, 2017, Owner filed objections and
    exceptions to set aside the upset sale, asserting that the sale did not strictly comply
    with the notice requirement set forth in Section 607.1(a) of the Real Estate Tax Sale
    Law (Tax Sale Law),2 added by the Act of July 3, 1986, P.L. 351, 72 P.S.
    §5860.607a. Owner’s petition was docketed at No. 2017-TX-0060 (2017 Docket).
    On February 12, 2018, Owner filed another set of objections and exceptions to the
    confirmation nisi of the consolidated return that was docketed at No. 2018-TX-0002
    (2018 Docket).
    On March 2, 2018, Owner and counsel for the Tax Claim Bureau
    appeared before the trial court and agreed to set aside the upset sale of the Property.
    That day, the trial court issued orders setting aside the upset sale in both the 2017
    and 2018 Dockets. At a separate docket No. 2017-TX-0055, the trial court issued
    an order granting the Tax Claim Bureau’s petition for confirmation of distribution
    of sale proceeds of multiple parcels sold at the September 20, 2017, upset tax sale.
    This order stated that with regard to the parcels where there were objections filed,
    no distribution was to be made of the proceeds of the sales until the objections had
    been fully adjudicated. The order specifically listed the Property and the objections
    placed on the 2017 Docket but did not list the objections pending on the 2018
    Docket. See Original Record (O.R.), 2017 Docket, Item 4, Exhibit C.
    2
    Act of July 7, 1947, P.L. 1368, as amended, 72 P.S. §§5860.101–5860.803.
    2
    On March 12, 2018, at the 2017 Docket, Yosaf Saleb (Successful
    Bidder) filed an emergency motion to intervene and to vacate the March 2, 2018,
    order setting aside the September 20, 2017, upset sale. Successful Bidder argued
    that he had a vested interest in the Property and, therefore, the right to intervene. He
    also argued that Owner failed to comply with the Pennsylvania Rules of Civil
    Procedure and the local court rules by not serving him with her petitions to set aside.
    Successful Bidder contended that the trial court’s order issued on March 2, 2018,
    deprived him of the “right to be heard[.]” O.R., 2017 Docket, Item 4, at 4, ¶12.
    By order dated March 26, 2018, the trial court granted Successful
    Bidder’s emergency motion; vacated the March 2, 2018, order; and scheduled a
    hearing for May 9, 2018, on Owner’s objections and exceptions to the upset sale.
    As of March 26, 2018, several orders had been issued. At the 2017
    Docket, the order setting aside the upset sale was vacated and a hearing was
    scheduled on Owner’s objections and exceptions. At the 2018 Docket, however, the
    order setting aside the upset sale remained in effect.
    On May 4, 2018, Owner filed a praecipe to discontinue the petition to
    set aside filed at the 2017 Docket. On June 22, 2018, the trial court sua sponte issued
    an order consolidating the 2017 and 2018 Dockets. On June 26, 2018, the trial court
    issued a rule to show cause why it should not vacate its March 2, 2018, order setting
    aside the upset sale at the 2018 Docket and strike the praecipe for voluntary
    discontinuance placed on the 2017 Docket. The rule was returnable on July 5, 2018.
    On July 17, 2018, the trial court issued an order that (1) vacated the order of March
    2, 2018; (2) struck Owner’s praecipe for voluntary discontinuance and withdrawal
    of objections filed at the 2017 Docket; and (3) added Successful Bidder to the
    caption as an intervenor in this consolidated matter. The trial court issued a rule to
    3
    show cause why the upset tax sale should not be set aside, directed Successful Bidder
    and the Tax Claim Bureau to file an answer to Owner’s objections and exceptions
    filed at the 2017 and 2018 Dockets, and scheduled a hearing for August 30, 2018.
    O.R., 2017 Docket, Item 23; O.R., 2018 Docket, Item 9.
    In the accompanying memorandum opinion, the trial court
    acknowledged that it issued the July 17, 2018, order more than 30 days after it issued
    its final order of March 2, 2018. The trial court explained that it had cause to do so
    because “had the objections been properly consolidated instead of separately
    docketed, both Orders would have been vacated by the March 26, 2018 Order of
    Court at [the 2017 Docket] and the inherently contradictory orders cannot stand.”
    Trial Court Op., 7/17/2018, at 4; Supplemental Reproduced Record at 5b (S.R.R.
    __) (emphasis in original). The trial court further noted that Owner should not be
    unjustly benefitted, to the detriment of Successful Bidder, by “a series of mistakes,
    errors, and unwritten policies of Lehigh County governing the docketing of
    objections and exceptions to Upset Tax Sales. A determination on the merits of
    [Owner’s] objections and exceptions is the more equitable resolution of this matter.”
    Trial Court Op., 7/17/2018, at 5; S.R.R. 6b.
    With respect to its decision to strike Owner’s praecipe for voluntary
    discontinuance filed at the 2017 Docket, the trial court explained that Pennsylvania
    Rule of Civil Procedure 229(c)3 permits the court to enter an order to prevent “unjust
    disadvantage” to a party especially where, as here, the purpose of discontinuance of
    3
    Rule 229(c) provides:
    The court, upon petition and after notice, may strike off a discontinuance in order
    to protect the rights of any party from unreasonable inconvenience, vexation,
    harassment, expense, or prejudice.
    PA.R.CIV.P. 229(c).
    4
    the case was to “forum shop.” Trial Court Op., 7/17/2018, at 5-6 (citing Pohl v.
    NGK Metals Corporation, 
    936 A.2d 43
    , 47 (Pa. Super. 2007), and Brown v. T.W.
    Phillips Gas & Oil Co., 
    74 A.2d 105
    , 107 (Pa. 1950)); S.R.R. 6b-7b. The trial court
    opined that Successful Bidder “was entitled to defend against the request of [Owner]
    to set aside the tax upset sale,” and “[b]y virtue of the inconsistent orders entered at
    the erroneously unconsolidated docket numbers,” Successful Bidder “was denied
    this opportunity once [Owner] discontinued her action at [the 2017 Docket].” Trial
    Court Op., 7/17/2018, at 6; S.R.R. 7b.
    Owner appealed the trial court’s July 17, 2018, order to this Court. In
    In Re: “Petition for Objections and Exceptions to Upset Sale” (Appeal of: Milagros
    Abreu) (Pa. Cmwlth., No. 1170 C.D. 2018, filed December 19, 2018), petition for
    allowance of appeal denied, 
    217 A.3d 186
     (Pa. 2019), we quashed Owner’s appeal
    for the stated reason that the July 17, 2018, order was interlocutory and not
    appealable.
    On May 29, 2020, the trial court entered an order that overruled
    Owner’s objections and exceptions and upheld the upset sale of the Property. Owner
    appealed.
    Appeal
    On appeal,4 Owner raises three issues for our consideration. First,
    Owner argues that the trial court lacked jurisdiction to enter the order of July 17,
    2018, at the 2018 Docket vacating the March 2, 2018, order that set aside the upset
    sale of the Property. Second, Owner argues that the trial court lacked jurisdiction to
    take further action at the 2017 Docket after the praecipe for discontinuance ended
    4
    “In tax sale cases, our scope of review determines whether the trial court abused its discretion,
    rendered a decision with lack of supporting evidence[,] or clearly erred as a matter of law.”
    Chester County Tax Claim Bureau v. Griffith, 
    536 A.2d 503
    , 504 (Pa. Cmwlth. 1988).
    5
    this case. Third, Owner argues that the trial court erred in granting Successful
    Bidder’s emergency motion to intervene at the 2017 Docket absent a finding of
    extraordinary circumstances. We address the issues seriatim.
    I. Trial Court’s Jurisdiction at the 2018 Docket
    We first consider whether the trial court had jurisdiction to issue its
    order of July 17, 2018, which vacated the order of March 2, 2018, setting aside the
    upset sale at the 2018 Docket. Owner argues that under the Judicial Code,5 courts
    have no jurisdiction to alter a final order after expiration of the 30-day statutory
    period. Thus, Owner argues, the trial court lacked jurisdiction to enter another order
    after April 2, 2018.
    We begin with a review of the Judicial Code. Section 5505 provides as
    follows:
    Except as otherwise provided or prescribed by law, a court upon
    notice to the parties may modify or rescind any order within 30
    days after its entry, notwithstanding the prior termination of any
    term of court, if no appeal from such order has been taken or
    allowed.
    42 Pa. C.S. §5505 (emphasis added).
    A court order may be modified after 30 days in limited circumstances.
    Where the error is evident on the face of the order or there has been a breakdown in
    the administration of the court, the court may amend its order beyond the 30-day
    appeal period. Board of Supervisors of Chartiers Township v. Quarture, 
    603 A.2d 295
    , 298 (Pa. Cmwlth. 1992) (Quarture). This discretionary power is, however,
    limited. We have explained:
    Generally, judgments regularly entered in adverse proceedings
    cannot be opened or vacated after they have become final, unless
    5
    42 Pa. C.S. §§101-9914.
    6
    there has been fraud or some other circumstances “so grave or
    compelling as to constitute ‘extraordinary cause’ justifying
    intervention by the court.” Such circumstances have customarily
    entailed an oversight or act by the court, or failure of the judicial
    process, which operates to deny the losing party knowledge of
    entry of final judgment and commencement of the running of the
    appeal period.
    Id. at 298-99 (quoting Axsom v. Department of Transportation, Bureau of Driver
    Licensing, 
    598 A.2d 616
    , 619 (Pa. Cmwlth. 1991)) (internal quotations omitted)
    (emphasis added).
    In Commonwealth v. Cole, 
    263 A.2d 339
     (Pa. 1970), the common pleas
    court issued an order granting the defendant’s motion for a new trial and arrest of
    judgment. Three and one half months later, the court entered an order modifying the
    original order to read: “[M]otion for new trial is granted; motion in arrest of
    judgment [sic] is dismissed.” Id. at 340. On appeal, our Supreme Court held that
    the common pleas court had the power to amend the original order because it was
    simply correcting a mistake that was plain from the face of the order. The grant of
    a new trial and arrest of judgment were “clearly antagonistic.” Id. at 341. “[I]f the
    motion in arrest of judgment was proper, [the defendant] could not be tried again
    whereas, if the new trial was proper, the motion would have to fail.” Id.
    By contrast, in Quarture, 
    603 A.2d 295
    , the common pleas court
    entered an order directing the township board of supervisors to issue a strip mining
    permit subject to certain conditions set forth in a letter by the applicants’ counsel.
    Months later, the common pleas court, upon petition, entered an order clarifying its
    prior order because of an error in counsel’s letter. This Court held that the common
    pleas court lacked jurisdiction to issue the second order because the error in the letter
    was not of the type which would permit the court to modify its order beyond the 30-
    day period in Section 5505 of the Judicial Code.
    7
    Here, on March 26, 2018, the trial court granted Successful Bidder’s
    emergency motion to intervene and vacated the March 2, 2018, order that set aside
    the upset sale at the 2017 Docket but left alone another order at the 2018 Docket that
    also set aside the upset sale. The trial court explained that it “inadvertently created
    two different and conflicting resolutions of the same dispute.” Trial Court Op.,
    7/17/2018, at 3-4; S.R.R. 4b-5b. The March 26, 2018, order at the 2017 Docket and
    the March 2, 2018, order at the 2018 Docket thus were “clearly antagonistic.” Cole,
    263 A.2d at 341. By consolidating the 2017 and 2018 Dockets and vacating its
    March 2, 2018, order at the 2018 Docket on July 17, 2018, the trial court simply
    corrected “an oversight or act by the court,” which is the type of error correction
    permitted beyond the 30-day period in Section 5505 of the Judicial Code. Quarture,
    
    603 A.2d at 298
     (quoting Axsom, 
    598 A.2d at 619
    ).
    We hold that the trial court had jurisdiction to issue the July 17, 2018,
    order at the 2018 Docket.
    II. Trial Court’s Jurisdiction at the 2017 Docket
    Owner argues, next, that the trial court lacked jurisdiction to strike her
    praecipe for discontinuance and withdrawal of objections and exceptions at the 2017
    Docket because the praecipe had ended this matter. Owner contends that the trial
    court erred in relying on PA.R.CIV.P. 229 because the Pennsylvania Rules of Civil
    Procedure do not apply to statutory proceedings brought under the Tax Sale Law.
    At the 2017 Docket, the trial court granted Successful Bidder’s
    emergency motion to intervene; vacated the March 2, 2018, order that set aside the
    upset sale of the Property; and scheduled a hearing for May 9, 2018, on Owner’s
    objections and exceptions.      On May 4, 2018, Owner filed the praecipe for
    discontinuance and withdrawal of objections and exceptions at the 2017 Docket.
    8
    However, as the trial court explained, Owner still sought to set aside
    the upset sale. In discontinuing the case at the 2017 Docket, Owner chose to rely on
    the 2018 Docket where, due to the oversight by the trial court, an order setting aside
    the upset sale remained in effect. Successful Bidder was unaware of the 2018 Docket
    and, thus, did not file a motion to intervene at the 2018 Docket. On July 17, 2018,
    the trial court corrected its error by issuing an order to consolidate the two dockets
    and vacate the March 2, 2018, order at the 2018 Docket. In the same order, the trial
    court struck Owner’s praecipe for discontinuance and explained that discontinuance
    was improper where it is apparent that the purpose of discontinuance of the case was
    to prevent Successful Bidder from defending the upset sale. Trial Court Op.,
    7/17/2018, at 5-6; S.R.R. 6b-7b. The trial court did so in reliance upon PA.R.CIV.P.
    229.
    Although the Pennsylvania Rules of Civil Procedure do not apply to
    statutory proceedings brought under the Tax Sale Law, Owner has overlooked the
    precept that courts have discretion to conduct a statutory proceeding as appropriate
    to move the case to a conclusion in a methodical fashion. See In re Tax Sale Held
    September 10, 2003 by Tax Claim Bureau of County of Lackawanna, 
    859 A.2d 15
    ,
    18 n.9 (Pa. Cmwlth. 2004) (Sposito) (trial court has discretion to use the
    Pennsylvania Rules of Civil Procedure where appropriate). Section 607(d) of the
    Tax Sale Law directs that “[i]n case any objections or exceptions are filed they shall
    be disposed of according to the practice of the court.” 72 P.S. §5860.607(d).
    Pennsylvania Rule of Civil Procedure 229(c) provides that courts,
    “upon petition and after notice, may strike off a discontinuance in order to protect
    the rights of any party from unreasonable inconvenience, vexation, harassment,
    expense, or prejudice.” PA.R.CIV.P. 229(c). “A discontinuance in strict law must
    9
    be by leave of court, but it is the universal practice in Pennsylvania to assume such
    leave in the first instance.” Fancsali ex rel. Fancsali v. University Health Center of
    Pittsburgh, 
    761 A.2d 1159
    , 1161 (Pa. 2000) (quoting Consolidated National Bank
    v. McManus, 
    66 A. 250
     (Pa. 1907)). However, the discontinuance can be stricken
    in certain cases:
    The causes which will move the court to withdraw its assumed
    leave and set aside the discontinuance are addressed to its
    discretion, and usually involve some unjust disadvantage to the
    defendant or some other interested party[.]
    Fancsali, 761 A.2d at 1162 (quoting Consolidated National Bank, 66 A. at 250)
    (emphasis added).
    Here, the trial court did just that. It corrected the mistaken entry of two
    contradictory orders entered at the 2017 and 2018 Dockets by consolidating the two
    dockets and vacating the March 2, 2018, order that had set aside the upset sale at the
    2018 Docket. Because Owner sought to set aside the upset sale, the July 17, 2018,
    order also struck off her praecipe for discontinuance at the 2017 Docket so that the
    trial court could determine the merits of her objections to the upset sale. Should the
    trial court have vacated the March 2, 2018, order at the 2018 Docket without striking
    her praecipe or discontinuance at the 2017 Docket, Owner’s objections to the upset
    sale could not be heard.
    We conclude that the trial court had jurisdiction to strike Owner’s
    praecipe for discontinuance and withdrawal of objections and exceptions at the 2017
    Docket.
    III. Successful Bidder’s Emergency Motion to Intervene
    Owner argues that the trial court erred in granting Successful Bidder’s
    emergency motion to intervene at the 2017 Docket because it was filed after the
    10
    entry of the final order and, thus, untimely. Owner contends that she was not
    required to serve Successful Bidder with the petition to set aside. In any case,
    Successful Bidder had actual knowledge of Owner’s challenge to the upset sale but
    chose not to take action until the trial court entered its final order on March 2, 2018.
    In support, Owner cites the transcript of the court hearing where counsel for Owner
    and the Tax Claim Bureau both stated that Successful Bidder knew of Owner’s
    challenge to the upset sale of the Property. Reproduced Record at 11a-12a. Owner
    contends that the trial court erred because it did not find there were extraordinary
    circumstances that justified Successful Bidder’s untimely intervention petition,
    which is required for such a petition.
    Successful Bidder responds that extraordinary circumstances did exist
    because Owner did not notify him of either set of objections and exceptions. He also
    contends that the record is devoid of any evidence that he was aware of Owner’s
    challenges to the upset sale before March 2, 2018. Owner contends that M.J.M.
    Financial Services, Inc. v. Burgess by Dignazio, 
    533 A.2d 1092
     (Pa. Cmwlth. 1981)
    (M.J.M. Financial Services), has established that a successful bidder’s lack of notice
    constitutes extraordinary circumstances to justify an untimely petition to open
    judgment and intervene.
    We begin with a review of the applicable notice requirements. Section
    602 of the Tax Sale Law requires the tax claim bureau to provide three separate types
    of notice in advance of an upset tax sale: (1) publication at least 30 days prior to the
    sale; (2) direct notification to each owner by certified mail at least 30 days prior to
    the sale; and (3) posting of the property at least 10 days prior to the sale. 72 P.S.
    §5860.602. If the property listed for upset sale is occupied by the owner, Section
    11
    601(a)(3) of the Tax Sale Law also requires the tax claim bureau to effect personal
    service on the owner by a sheriff. 72 P.S. §5860.601(a)(3).
    After a tax sale, the tax claim bureau must give the owner notice of the
    tax sale of the owner’s property and of the opportunity to challenge that sale. Section
    607(a.1)(1) of the Tax Sale Law, 72 P.S. §5860.607(a.1)(1).6 The Tax Sale Law
    does not require the tax claim bureau to copy the successful bidder on the notice sent
    to each owner pursuant to Section 607(a.1)(1). Likewise, under Section 607(d) of
    the Tax Sale Law, an owner or lien creditor may file objections to challenge the
    “regularity or legality of the proceedings” of the tax claim bureau, which is the only
    respondent that must be named in the owner’s petition. 72 P.S. §5860.607(d).7
    In Sposito, 
    859 A.2d at 18
    , this Court rejected the claim that the tax
    claim bureau has the duty to give the successful bidder notice of an owner’s
    objections to a sale, or the responsibility to “file a petition to add [the successful
    6
    It provides:
    Notice shall be given by the bureau within thirty (30) days of the actual sale to each
    owner by United States certified mail, restricted delivery, return receipt requested,
    postage prepaid, to each owner at his last known post office address as determined
    in section 602(e)(2) that the property was sold and that the owner may file
    objections or exceptions with the court relating to the regularity and procedures
    followed during the sale no later than thirty (30) days after the court has made a
    confirmation nisi of the consolidated return.
    72 P.S. §5860.607(a.1)(1) (emphasis added).
    7
    It states:
    Any objections or exceptions to such a sale may question the regularity or legality
    of the proceedings of the bureau in respect to such sale, but may not raise the
    legality of the taxes on which the sale was held, of the return by the tax collector to
    the bureau or of the claim entered. In case any objections or exceptions are filed
    they shall be disposed of according to the practice of the court. If the same are
    overruled or set aside, a decree of absolute confirmation shall be entered by the
    court.
    72 P.S. §5860.607(d) (emphasis added).
    12
    bidder] as an additional party[.]” Id. (citation omitted). To the contrary, the Tax
    Sale Law “does not make successful bidders, whose purchases have not been
    confirmed, parties to objection proceedings as a matter of course.” Id.
    Likewise, it is not the responsibility of the owner who files objections
    under Section 607 of the Tax Sale Law to name the successful bidder as a party or
    serve him with a copy of the owner’s objection petition. In re 2005 Sale of Real
    Estate by Clinton County Tax Claim Bureau Delinquent Taxes, 
    915 A.2d 719
    , 722-
    23 (Pa. Cmwlth. 2007) (Clinton County). Rather, “successful bidders must petition
    to intervene in order to be considered parties in an objection proceeding challenging
    a confirmation nisi.” 
    Id. at 723
    . It is the successful bidder’s responsibility, after
    purchasing the property at the tax sale, to check the court docket or touch base with
    the tax claim bureau periodically should the successful bidder desire to participate
    in the owner’s objection petition. In Re Lehigh County Tax Claim Bureau Upset
    Sale of September 19, 2018, 
    263 A.3d 714
    , 722 (Pa. Cmwlth. 2021) (Tchorzewski).
    Pennsylvania Rule of Civil Procedure 2329(3) permits a court to deny
    intervention where “the petitioner has unduly delayed in making application for
    intervention . . . .” PA.R.CIV.P. 2329(3).8 The grant or denial of intervention is a
    matter committed to the trial court’s discretion and will not be set aside on appeal
    8
    It states:
    Upon the filing of the petition and after hearing, of which due notice shall be given
    to all parties, the court, if the allegations of the petition have been established and
    are found to be sufficient, shall enter an order allowing intervention; but an
    application for intervention may be refused, if
    ****
    (3) the petitioner has unduly delayed in making application for intervention or the
    intervention will unduly delay, embarrass or prejudice the trial or the adjudication
    of the rights of the parties.
    PA.R.CIV.P. 2329(3) (emphasis added).
    13
    unless there has been an abuse of such discretion. Jackson v. Hendrick, 
    446 A.2d 226
    , 228-29 (Pa. 1982). Our Supreme Court has further directed that a petition to
    intervene filed after entry of a final order should be denied except in extraordinary
    circumstances. 
    Id. at 229
    .
    An extraordinary circumstance refers to “an oversight or action on the
    part of the court or the judicial process which operates to deny the losing party
    knowledge of the entry of final judgment so that the commencement of the running
    of the appeal time is not known to the losing party.” Pendle Hill v. Zoning Hearing
    Board of Nether Providence Township, 
    134 A.3d 1187
    , 1202 (Pa. Cmwlth. 2016)
    (quoting Manufacturers and Traders Trust Co. v. Greenville Gastroenterology, SC,
    
    108 A.3d 913
    , 919 (Pa. Super. 2015)). “[T]he extraordinary circumstances to be
    reviewed cannot pertain to the merits or the substantive defense the intervenor seeks
    to litigate. Rather, it is the circumstances proffered to excuse the untimely filing that
    must be scrutinized.” Pendle Hill, 
    134 A.3d at 1197
     (internal citation omitted).
    Successful Bidder relies upon M.J.M. Financial Services, 
    533 A.2d 1092
    . There, the tax claim bureau conducted a tax sale of property titled to an owner
    who had been declared incompetent and subject to a guardianship. The tax claim
    bureau conceded that it knew of the guardian’s appointment but mistakenly sent the
    statutory notices to the incompetent owner. After the trial court set aside the tax
    sale, the successful bidder petitioned to intervene and to open the judgment. The
    trial court denied the petition for the stated reason that the successful bidder lacked
    standing. This Court reversed, holding that the successful bidder had standing. We
    further found as follows:
    [The successful bidder] has alleged that it was unaware of the
    petition to set aside the sale until two days after the order itself
    setting aside the sale was entered and was not aware of the order
    until October 8. A motion to intervene after entry of a decree
    14
    should be denied except in extraordinary circumstances.
    Jackson[, 
    446 A.2d 226
    ]. We hold that such extraordinary
    circumstances are present here, and hence that intervention
    should have been permitted.
    
    Id.
    In M.J.M. Financial Services, this Court assumed that a successful
    bidder is entitled to direct notice of an owner’s petition to set aside, but this is not
    the current law. Neither the tax claim bureau nor the owner of property sold at a tax
    sale is required to notify the successful bidder of a petition to set aside. See Sposito,
    
    859 A.2d 15
    ; Clinton County, 
    915 A.2d 719
    . M.J.M. Financial Services offered no
    explanation for its holding beyond the successful bidder’s lack of notice. It does not,
    therefore, support Successful Bidder’s argument that Owner’s failure to notify him
    of the petition to set aside constitutes the extraordinary circumstances required for
    an intervention petition that is filed after the entry of a final order.
    Successful Bidder argues that Owner’s failure to serve him with a copy
    of the objections deprived him of notice. However, it was not Owner’s responsibility
    under Section 607 of the Tax Sale Law to name Successful Bidder as a party or serve
    him with a copy of the objection. Clinton County, 
    915 A.2d at 722-23
    . Rather, it
    was Successful Bidder’s responsibility to check the court docket or touch base with
    the Tax Claim Bureau if he desired to participate in Owner’s objection petition.
    Tchorzewski, 263 A.3d at 722. Successful Bidder also argues that because Owner
    failed to file a rule to show cause along with its petition to set aside, the trial court
    did not schedule a hearing. The absence of a hearing also impeded Successful
    Bidder’s learning of the pending litigation. Owner responds that Successful Bidder
    had actual knowledge of the objections to the upset sale because counsel for Owner
    and the Tax Claim Bureau had contacted Successful Bidder and his daughter about
    this matter.
    15
    In most situations, the court must hold a hearing in order to determine
    whether to grant intervention. PA.R.CIV.P. 2329. Here, the trial court did not hold
    a hearing on the petition to intervene or make any finding on whether Successful
    Bidder’s untimely petition was due to “extraordinary circumstances.” Jackson, 446
    A.2d at 226 (quotation omitted). This was error.
    We hold that the trial court erred and abused its discretion in granting
    Successful Bidder’s intervention petition without any consideration of its
    untimeliness. We therefore vacate the trial court’s decision and remand for a
    determination of whether Successful Bidder’s petition has alleged facts, other than
    lack of notice given by Owner, to show extraordinary circumstances. If so, then the
    trial court must hold a hearing on whether Successful Bidder can prove the
    extraordinary circumstances necessary to allow his untimely petition.
    IV. Conclusion
    We hold that the trial court had jurisdiction to issue the July 17, 2018,
    order consolidating the 2017 and 2018 Dockets and vacating its March 2, 2018, order
    at the 2018 Docket. In doing so, the trial court corrected “an oversight by the court,”
    which is the type of error correction permitted after the 30-day period in Section
    5505 of the Judicial Code. Quarture, 
    603 A.2d at 298-99
    . We also hold that the
    trial court had jurisdiction to strike Owner’s praecipe for discontinuance and
    withdrawal of objections and exceptions at the 2017 Docket. However, in granting
    Successful Bidder’s emergency motion to intervene, the trial court erred because it
    did not address whether extraordinary cause existed for this untimely intervention
    petition. Because PA.R.CIV.P. 2329 anticipates a hearing, and none was held, the
    trial court shall conduct a hearing on remand if it concludes that Successful Bidder’s
    intervention petition has alleged facts to show extraordinary circumstances. If the
    16
    trial court determines that Successful Bidder lacked extraordinary cause for seeking
    untimely intervention, it shall issue a new decision reinstating the March 2, 2018,
    order setting aside the upset sale of the Property.
    _____________________________________________
    MARY HANNAH LEAVITT, President Judge Emerita
    17
    IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    In Re: Petition for Objections and     :
    Exceptions to Upset Sale               :
    :    No. 650 C.D. 2020
    In Re: Objections and Exceptions       :
    to Upset Sale                          :
    :
    Appeal of: Milagros Abreu              :
    In Re: Objection and Exceptions        :
    to Upset Sale                          :    No. 1356 C.D. 2020
    :
    Appeal of: Milagros Abreu              :
    ORDER
    AND NOW, this 28th day of September, 2023, the order of the Court of
    Common Pleas of Lehigh County, dated May 29, 2020, is VACATED, and this
    matter is REMANDED for proceedings consistent with the foregoing opinion.
    Jurisdiction is relinquished.
    ____________________________________________
    MARY HANNAH LEAVITT, President Judge Emerita
    

Document Info

Docket Number: 650 & 1356 C.D. 2020

Judges: Leavitt, President Judge Emerita

Filed Date: 9/28/2023

Precedential Status: Precedential

Modified Date: 9/28/2023