Res. Ind. Inc. v. Com of PA Penn State Health Med ( 2023 )

J-A16039-23
NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT OP 65.37
RESPONSE INDUSTRIAL, INC. : IN THE SUPERIOR COURT OF
: PENNSYLVANIA
:
v. :
:
:
COMMONWEALTH OF PENNSYLVANIA :
PENN STATE HEALTH LANCASTER :
MEDICAL CENTER : No. 1388 MDA 2022
:
:
APPEAL OF: ENVIRONMENTAL AIR :
SYSTEMS, LLC. :
Appeal from the Order Entered September 2, 2022
In the Court of Common Pleas of Lancaster County Civil Division at
No(s): CI-22-00418
BEFORE: PANELLA, P.J., BENDER, P.J.E., and McCAFFERY, J.
MEMORANDUM BY McCAFFERY, J.: FILED: AUGUST 15, 2023
Environmental Air Systems, LLC (EAS) appeals from the order entered
September 2, 2022, in the Lancaster County Court of Common Pleas. The
trial court granted a motion for reconsideration, filed by Response Industrial,
Inc. (RII), of its prior order striking a mechanics’ lien claim, and reinstated
the mechanics’ lien.1 EAS presents three issues for our review: (1) whether
this Court has jurisdiction over this appeal; (2) whether the trial court erred
when it reconsidered its prior order more than 30 days after it was entered;
and (3) whether the trial court properly struck the mechanics’ lien claim when
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1 As will be discussed infra, the Commonwealth of Pennsylvania Penn State
Health Lancaster Medical Center (Penn State Health) did not participate in
these proceedings and is not a party to this appeal.
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RII failed to file an affidavit of service as required by the Mechanics’ Lien Law.2
Because we conclude the trial court had no authority to reconsider its prior,
final order after the appeal period expired, we are constrained to vacate the
order on appeal, and remand for reinstatement of the court’s July 18, 2022,
order.
We discern the following relevant facts and procedural history from the
certified record. Penn State Health is the owner of a property located at 2148
State Road in Lancaster, Pennsylvania, where it is constructing a Central
Utility Plant (the Project). See RII’s Mechanic[s’] Lien Claim, 1/24/22, at ¶¶
2, 4; EAS’s Brief at 4; RII’s Brief at 1. EAS, a subcontractor for the Project,
entered into a subcontract with RII to provide “engineering work and
contracting services, including central utility plant modular connections” for
the Project. RII’s Mechanic[s’] Lien Claim at ¶ 4. RII maintains that it
completed the work requested on September 22, 2021, but that it was still
due $190,479.07 for labor and materials. See id. at ¶¶ 5-8. Thus, on January
24, 2022, RII filed the underlying mechanics’ lien claim against Penn State
Health in the amount of $190,479.07. Relevant herein, on February 24, 2022,
a signed Sheriff’s Return of Service was docketed, which stated that the
mechanics’ lien claim was served on Penn State Health the day before,
February 23rd.
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2 See Mechanics Lien Law of 1963, 49 P.S. §§ 1101-1902.
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Meanwhile, on February 23, 2022, EAS filed a motion requesting
permission to file a bond to discharge and release the mechanics’ lien on Penn
State Health’s property. See EAS’s Motion to File Bond to Discharge
Mechanics’ Lien, 2/23/22, at 1-2. EAS asserted, inter alia, “as the entity that
allegedly failed to pay RII, EAS [was] a ‘party in interest’” pursuant to the
Mechanics’ Lien Law. Id. at 2. On March 23, 2023, the trial court granted
the motion and ordered EAS to “enter and post with the court a lien bond in
the amount of $380,958.14[,]” double the lien amount.3 Order, 3/23/23. The
court further stated, “[w]hen the bond is posted, the lien shall discharge as to
[Penn State Health’s] property and attach to [EAS’s] bond.” Id. (footnote
omitted). Thereafter, on April 1, 2022, EAS posted the requisite lien bond.
On April 8, 2022, RII filed a civil complaint against EAS, seeking
damages for breach of contract and quantum meruit in the same amount as
the mechanics’ lien claim. EAS filed preliminary objections asserting, inter
alia, that RII was prohibited from “filing a breach of contract claim in the same
action as a mechanics’ lien claim[,]” and, in any event, the parties’ subcontract
included both an arbitration clause and a forum selection clause, which
required any civil action be brought in Guilford County, North Carolina.4 EAS’s
Preliminary Objections to RII’s Complaint, 6/3/22, at 2-4, 6-7. RII filed
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3 See 49 P.S. § 1510(d) (providing security “may be entered . . . double the
amount of the required deposit” to have lien discharged).
4 EAS is a limited liability company with a registered business address in High
Point, North Carolina. See RII’s Complaint, 4/8/22, at ¶ 2.
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preliminary objections to EAS’s preliminary objections, arguing that EAS’s
objections were untimely filed and the forum selection clause is unenforceable.
See RII’s Preliminary Objections to EAS’s Preliminary Objections to RII’s
Complaint, 6/17/22, at 3-5 (unpaginated).
While the competing preliminary objections to the civil action were
pending, on July 1, 2022, EAS filed a motion to strike the mechanics’ lien. It
argued that RII failed to file an affidavit of service within 20 days of the service
of the lien as required by Section 1502(a)(2) of the Mechanics Lien Law.5 See
EAS’s Motion to Strike Mechanics’ Lien Claim, 7/1/22, at 2. Further, because
a mechanics’ lien must be filed within six months after work is completed6 ─
which RII acknowledged was in September of 2021 ─ EAS asserted the
mechanics’ lien action “should be dismissed with prejudice.” Id. at 4.
RII filed a response and supporting brief, averring that the sheriff’s
return of service, docketed on February 23, 2022, satisfied the requirements
of Section 1502. See RII’s Brief in Support of Response in Opposition to EAS’s
Motion to Strike Mechanic[s’] Lien Claim, 7/8/22, at 3. EAS filed a reply,
disputing RII’s assertion. Thereafter, on July 18, 2022, the trial court entered
an order which: (1) granted EAS’s motion to strike the mechanics’ lien claim
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5 See 49 P.S. § 1502(a)(2) (requiring mechanics’ lien claimant to, inter alia,
file “affidavit of service of notice, or the acceptance of service, . . . within
twenty (20) days after service [of lien claim] setting forth the date and manner
of service”).
6 See 49 P.S. § 1502(a)(1) (mechanics’ lien claim must be filed “within six (6)
months after the completion of [the] work”).
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due to RII’s failure to file an affidavit of service; (2) sustained EAS’s
preliminary objection to RII’s civil complaint based upon the misjoinder of
actions; (3) dismissed as moot EAS’s remaining preliminary objections; and
(4) overruled RII’s preliminary objections to EAS’s preliminary objections.
See Order, 7/18/22, at 1-2. We note that an order striking a mechanics’ lien
claim is final and appealable. See Caldwell v. Carter, 23 A. 575 (Pa. 1892).
Therefore, RII could have filed an appeal from the July 18th order within 30
days, that is, no later than August 17, 2022.
However, on August 15, 2022 ─ two days before the appeal period
expired ─ RII instead filed a motion seeking reconsideration of the trial court’s
July 18th order. See RII’s Motion for Reconsideration of [Trial] Court’s July
[18], 2022 Order Striking its Mechanics’ Lien Claim & Seeking Reinstatement
of Said Claim, 8/15/22, 2-3 (unpaginated). Notably, RII did not file a
supporting brief “concurrently” with the motion, as required by local Lancaster
County Rule of Civil Procedure 208.3(b)(A).7 Further, although the motion
was properly docketed, the trial court maintains that it did not receive notice
of the filing at that time. See Trial Ct. Op. at 2.
Thereafter, on August 25, 2022, a week after the appeal deadline, EAS
filed a praecipe to deem RII’s motion for reconsideration withdrawn pursuant
to local Rule 208. See Lancaster Cty R.C.P. 208.3(b)(A) (“If a brief is not filed
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7 See Lancaster Cty R.C.P. 208.3(b)(A) (“The moving party shall file a
motion, proposed order and supporting brief concurrently.”) (emphasis
added).
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with the motion, the motion shall be deemed withdrawn, without prejudice,
upon praecipe of an opposing party.”) (emphasis added). That same day, RII
filed a second, identical motion for reconsideration ─ this time, however, RII
concurrently filed a supporting brief. See RII’s Motion for Reconsideration of
[Trial] Court’s July [18], 2022 Order Striking its Mechanics’ Lien Claim &
Seeking Reinstatement of Said Claim, 8/25/22; RII’s Brief in Support of Motion
for Reconsideration of [Trial] Court’s July [18], 2022 Order Striking its
Mechanics’ Lien Claim & Seeking Reinstatement of Said Claim, 8/25/22.
On September 2, 2022, the trial court entered the order on appeal,
which: (1) granted RII’s motion for reconsideration; (2) reinstated RII’s
mechanics’ lien claim; and (3) denied EAS’s motion to strike the lien claim.
See Order, 9/2/22. In a footnote, the court explained that the sheriff’s return
of service, which was docketed within 20 days of service of the lien claim,
satisfied the requirements of Section 1502. See id. at n.1. EAS filed this
timely appeal on September 26, 2022, and complied with the trial court’s
directive to file a Pa.R.A.P. 1925(b) concise statement of errors complained of
on appeal.
On December 6, 2022, this Court directed EAS to show cause as to: (1)
whether the order on appeal, granting a motion for reconsideration, was final
and appealable; (2) whether EAS had standing since it did not appear to be a
party to the mechanics’ lien claim; and (3) whether the appeal should be
transferred to the Commonwealth Court because the Commonwealth of
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Pennsylvania was a named party. Order, 12/6/22. After EAS filed a timely
response, we discharged the rule on February 7, 2023. Order, 2/7/23.
EAS presents the following three issues for our review:8
A. Whether the Superior Court may exercise appellate jurisdiction
over this appeal?
B. Whether the trial court erred in vacating its initial decision to
strike the mechanics’ lien claim, when it issued its order
granting reconsideration more than thirty (30) days after
initially granting EAS’[s] motion to strike the mechanics’ lien
claim, in violation of 42 Pa.C.S. § 5505?
C. Whether the trial court erred in reinstating the mechanics’ lien
claim, where the Mechanics’ Lien Law and controlling case
authorities conclusively require a claimant to file an affidavit of
service within 20 days of service of the mechanics’ lien claim?
EAS’s Brief at 3-4 (some capitalization omitted).
EAS first addresses the concerns raised by this Court in the rule to show
cause, and “incorporates by reference the arguments contained in its
[r]esponse[.]” EAS’s Brief at 28-29. This Court’s show cause order raised
three questions concerning our jurisdiction over this appeal: (1) whether EAS,
who is not a named party in the action, has standing to appeal; (2) whether
the appeal should be transferred to the Commonwealth Court since Penn State
Health is a named party; and (3) whether the order on appeal ─ granting
reconsideration of a prior order ─ is final and appealable. See Order, 12/6/22.
Preliminarily, we agree that EAS is an “aggrieved” party which has
standing to appeal the order at issue, and that the matter should not be
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8 We have reordered EAS’s claims for purposes of disposition.
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transferred to the Commonwealth Court.9 By way of background, we reiterate
that Penn State Health is the captioned defendant in this matter because it is
the owner of the property, and project, at issue. However, EAS is the entity
that contracted with RII and allegedly failed to pay RII. Therefore, EAS posted
bond to remove the mechanics’ lien from Penn State Health’s property.
Moreover, EAS is the named defendant in RII’s breach of contract civil action.
Pennsylvania Rule of Appellate Procedure 501 provides that “any party
who is aggrieved by an appealable order . . . may appeal therefrom.”
Pa.R.A.P. 501. Further, the Judicial Code defines a “party” as “[a] person who
commences or against whom relief is sought in a matter.” 42 Pa.C.S. § 102.
Here, EAS is clearly the entity “aggrieved” by the trial court’s order reinstating
the mechanics’ lien claim ─ the lien is attached to the bond EAS posted.
Indeed, EAS is the entity that will be required to pay RII if, in fact, the action
is resolved in RII’s favor. Because EAS has “a substantial, direct and
immediate interest in the outcome of the litigation[,]” we conclude it has
standing to appeal the court’s order. See Johnson v. Am. Standard, 8 A.3d
318, 329 (Pa. 2010).
Further, because the Commonwealth of Pennsylvania, while a named
defendant, is not an aggrieved party, we agree that we are not required to
transfer this matter to the Commonwealth Court. Pursuant to Section 762 of
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9 RII agrees with EAS’s position on both of these issues. See RII’s Brief at
22.
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the Judicial Code, the Commonwealth Court has “exclusive jurisdiction of
appeals from final orders” in “Commonwealth civil cases.” 42 Pa.C.S. §
762(a)(1). However, as explained supra, although Penn State Health is the
owner of the property and project at issue, EAS entered into a subcontract
with RII and posted bond to discharge the mechanics’ lien from the property
─ thus, EAS is the entity that will be liable for any judgment. For this reason,
we agree that the appeal was properly filed in this Court.
The final jurisdictional issue concerns the appealability of the trial court’s
September 2, 2022, order, which purported to grant reconsideration of a
final order more than 30 days after it was entered. Preliminarily, we reiterate
that an order striking a mechanics’ lien is final and appealable. See Caldwell,
23 A. at 575. However, an order refusing to strike a mechanics’ lien is
“interlocutory and unappealable.” H.P. Starr & Sons, Inc. v. Stepp, 211
A.2d 78, 79 (Pa. Super. 1965). We recognize that the trial court’s September
2, 2022, order effectively refused to strike the mechanics’ lien claim ─ the
court granted RII’s motion for reconsideration, reinstated RII’s mechanics’ lien
claim, and denied EAS’s motion to strike the lien claim. See Order, 9/2/22.
Nevertheless, the primary issue on appeal is whether the trial court had
jurisdiction on September 2nd to grant reconsideration of the final, appealable
order it had entered more than 30 days prior on July 18th. See 42 Pa.C.S. §
5505 (if no appeal is taken, court may modify or rescind any order within 30
days of entry); Mfrs. & Traders Tr. Co. v. Greenville Gastroenterology,
SC, 108 A.3d 913, 916 (Pa. Super. 2015) (“A court lacks the authority to grant
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reconsideration of a final order more than 30 days after its entry.”); Valley
Forge Ctr. Assocs. v. Rib-it/K.P., Inc., 693 A.2d 242, 245 (Pa. Super.
1997) (motion for reconsideration tolls 30-day appeal period only when court
enters order “expressly granting” reconsideration before expiration of 30-day
period) (citation omitted).
This Court considered a similar issue in Gardner v. Consolidated Rail
Corp., 100 A.3d 280 (Pa. Super. 2014). In that case, on February 20, 2013,
the trial court entered a final, appealable order granting the defendants’
motion to transfer venue based on forum non conveniens. Id. at 282. The
next day, the plaintiff filed a timely motion for reconsideration, but not a notice
of appeal. Id. On April 10, 2013, more than 30 days after the entry of its
order, the court granted the plaintiff’s motion for reconsideration and vacated
the February 20th order.10 See id. The defendants then appealed to this
Court. We exercised appellate jurisdiction to consider whether the trial court
lacked the jurisdictional authority to grant a motion for reconsideration more
than 30 days after the order at issue was entered. See id. at 282-83. In that
case, we concluded the trial court had no authority to grant the motion for
reconsideration, so that its April 10th order was invalid. See id. at 283. Thus,
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10 Similar to an order refusing to strike a mechanics’ lien, an order denying a
motion to transfer venue based on forum non conveniens is not final or
appealable. See Pa.R.A.P. 311(c); Ritchey v. Rutter’s Inc., 286 A.3d 248,
253 (Pa. Super. 2022) (interlocutory order denying motion to transfer venue
appealable upon this Court’s grant of petition for review pursuant to Pa.R.A.P.
1311).
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based upon our exercise of jurisdiction in Gardner, we likewise conclude that
we may consider the appeal before us.
Accordingly, having disposed of the jurisdictional prerequisites, we now
consider EAS’s second issue on appeal, which directly challenges the trial
court’s authority to grant RII’s motion for reconsideration of a final, appealable
order more than 30 days after the order was entered. See EAS’s Brief at 12.
EAS argues that while Section 5505 of the Judicial Code permits a trial court
to modify or rescind any final order, it must act within 30 days of the entry of
the order, or it loses jurisdiction to do so. See id. Here, EAS maintains that
RII should have filed both a notice of appeal and a motion for reconsideration
in order to preserve its rights, since a motion for reconsideration does not toll
the 30-day period for filing an appeal unless the trial court expressly grants
reconsideration during that time period. See id. at 13-14. Because RII failed
to do so, and the trial court did not expressly grant reconsideration until after
the expiration of the 30-day appeal period, EAS insists the trial court’s
September 2, 2022, order is a nullity. See id. at 18.
EAS correctly cites the law concerning reconsideration of a final order.
Section 5505 of the Judicial Code authorizes a trial court to “modify or rescind
any order within 30 days after its entry, . . . if no appeal from such order has
been taken or allowed.” 42 Pa.C.S. § 5505. However, even after a party has
filed an appeal from a final order, Pa.R.A.P. 1701 authorizes a trial court to
grant reconsideration of a final order if: (1) an application for reconsideration
is filed within the 30-day appeal period; and (2) the court expressly grants
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reconsideration before the expiration of the appeal period. Pa.R.A.P.
1701(b)(3)(i)-(ii). “A timely order granting reconsideration under [Rule
1703(b)(3)] render[s] inoperative any such notice of appeal . . . filed or
docketed with respect to the prior order.” Pa.R.A.P. 1701(b)(3).
As this Court has explained:
Under section 5505, the trial court has broad discretion to modify
or rescind an order, and this power may be exercised sua sponte
or invoked pursuant to a party’s motion for reconsideration. [T]he
trial court may consider a motion for reconsideration only if the
motion for reconsideration is filed within thirty days of the entry
of the disputed order. The mere filing of a motion for
reconsideration, however, is insufficient to toll the appeal period.
If the trial court fails to grant reconsideration expressly within the
prescribed 30 days, it loses the power to act upon both the
[motion] and the original order.
PNC Bank, N.A. v. Unknown Heirs, 929 A.2d 219, 226 (Pa. Super. 2007)
(citations & quotation marks omitted). See also Valley Forge Ctr. Assocs.,
693 A.2d at 245 (“[A]lthough a party may petition the court for
reconsideration, the simultaneous filing of a notice of appeal is necessary to
preserve appellate rights in the event that either the trial court fails to grant
the petition expressly within 30 days, or it denies the petition.”).
Turning to the present matter, on July 18, 2022, the trial court entered
an order granting EAS’s motion to strike RII’s mechanics’ lien claim. On
August 15th, RII filed a motion for reconsideration ─ two days before the
expiration of the appeal period on August 17th. RII did not simultaneously
file a notice of appeal. Thus, the trial court facially exceeded its authority
pursuant to Section 5505 and Rule 1701, when it granted reconsideration of
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its July 18th order on September 2, 2022, 16 days after the appeal period
expired.
Nevertheless, in its opinion, the trial court maintains that despite the
jurisdictional time restrictions cited above, all courts retain the authority to
open or vacate a final judgment after the 30-day appeal period when there is
“extraordinary cause” requiring the court’s intervention. Trial Ct. Op.
11/4/22, at 3. Here, the court opined:
“Extraordinary cause” exists when some action or oversight
by the court deprives a litigant of its appella[te] rights. See
Jackson ex rel. Sanders v. Hendrick, 746 A.2d 574, 576 (Pa.
2000) (plurality opinion) (extraordinary cause where trial court’s
failure to memorialize and file oral order would force litigant to
forfeit appellate rights); Mfrs. & Traders Tr. Co.[,] 108 A.3d [at]
921 [ ] (extraordinary cause where court error prevented litigant
from receiving notice of final order). But see Luckenbaugh v.
Shearer, 523 A.2d 399, 401 (Pa. Super. 1987) (extraordinary
cause “generally” where error in judicial process prevents losing
party from receiving notice). While extraordinary cause generally
revolves around the litigant’s notice of a final order, the Superior
Court has historically accounted for other court errors in its
reasoning. See Great Am. Credit Corp. v. Thomas Mini
Markets, Inc., 326 A.2d 517 (Pa. Super. 1974) (analysis
including court misplacing appellant’s motion to detriment of
appellate rights).
Here, [RII] filed their motion for reconsideration on August
15, 2022, within Section 5505’s thirty-day window. The trial court
agrees that had it merely failed to act upon [RII’s] timely motion
for reconsideration, extraordinary cause would not exist. See
Simpson v. Allstate, 504 A.2d [335, 337-38] (Pa. Super. 1986).
However, the court was unaware of the filing — or any subsequent
filings by the parties — until August 30, 2022, when the
Prothonotary’s Office delivered the file. It is unclear exactly why
fifteen days passed from the date of filing to the date this court
received the motion for reconsideration, but the Prothonotary’s
Office is generally known to be chronically understaffed and
backlogged. The delay prevented the court from knowing of the
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time-sensitive issue and from making a timely decision, thus
forcing [RII] to forfeit their appellate rights. This failure of the
judicial process constitutes an “extraordinary cause” worthy of the
court’s intervention.
The trial court did not err in granting [RII’s] motion for
reconsideration nor in vacating its initial order, notwithstanding
the fact that Section 5505’s window for appeal had run, because
there was an extraordinary cause to justify intervention.
Trial Ct. Op. at 3-4.
Although we recognize that “extraordinary cause” can justify a trial
court’s decision to reconsider or vacate a final order more than 30 days after
its entry, we conclude the trial court erred when it determined that such
“extraordinary cause” was present in this case.
As this Court explained in Mfrs & Traders Tr. Co., supra:Our cases have referred to several circumstances under which a
trial court may modify a final order after more than 30 days have
passed: “extrinsic fraud, lack of jurisdiction over the subject
matter, a fatal defect apparent on the face of the record or some
other evidence of ‘extraordinary cause justifying intervention by
the court.’” ISN Bank v. Rajaratnam, 83 A.3d 170, 172 (Pa.
Super. 2013).
A court may open at any time a judgment procured by fraud.
For example, in First Union Mortgage Corp. v. Frempong, 744
A.2d 327, 334–35 (Pa. Super. 1999), we held that a trial court
had the authority to modify a final in rem judgment five years
after its entry. Because of the defendant’s use of aliases and
corporate alter egos, fraudulent court filings, frivolous bankruptcy
and removal petitions, and dilatory tactics, the original judgment
amount no longer reflected what he owed to the plaintiffs. Id.“Extraordinary cause” 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.” Orie
v. Stone, 601 A.2d 1268, 1271 ([Pa. Super.] 1992) (quotation
omitted) (emphasis removed), appeal dismissed as
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improvidently granted, 622 A.2d 286 ([Pa.] 1993). For
example, in Estate of Gasbarini v. Medical Center of Beaver
County, Inc., 409 A.2d 343, 344–45 (Pa. 1979), unbeknownst to
the plaintiff, her attorney had been suspended from the practice
of law when the defendants successfully argued for dismissal of
the case on their preliminary objections. Our Supreme Court held
the trial court could reopen the otherwise final judgment, because
“it would be harsh, indeed, to hold that [the plaintiff’s] possible
cause of action be lost forever because of the conduct of an
attorney this court has deemed unfit for the practice of law in this
Commonwealth.” Id. at 345.
Mfrs & Traders Tr. Co., 108 A.3d at 919 (emphasis added).
Nevertheless, we have emphasized that “extraordinary cause” justifying
a trial court’s decision to modify a final order more than 30 days after its entry
is “limited in nature.” Mfrs & Traders Tr. Co., 108 A.3d at 919; see
Simpson, 504 A.2d at 337 (stating “the discretionary power of the court over
[final] judgments is very limited.”). Notably, we have held that “mistakes or
ordinary neglect by counsel do not constitute extraordinary circumstances.”
Mfrs & Traders Tr. Co., 108 A.3d at 919. But see Estate of Gasbarini,
409 A.2d at 344-45 (plaintiff attorney’s suspension from practice of law at the
time trial court sustained preliminary objections and dismissed complaint ─
unbeknownst to plaintiff ─ constituted extraordinary cause justifying court’s
order opening judgment). Furthermore, “[w]e have also held that
extraordinary cause does not exist where a party has notice of the entry of
a final order.” Mfrs & Traders Tr. Co., 108 A.3d at 919 (emphasis added).
In the present case, RII does not dispute it had notice of the trial court’s
July 18th final order striking the mechanics’ lien claim; indeed, it filed a motion
for reconsideration within the 30-day appeal period. Rather, the error here
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was of its own making ─ RII failed to file a notice of appeal concomitant with
its motion for reconsideration in order to preserve its appellate rights pursuant
to Pa.R.A.P. 1701(b)(3). See Valley Forge Ctr. Assocs., 693 A.2d at 245.
Recognizing this Court’s disinclination to find extraordinary cause when
a litigant received timely notice of the entry of a final order, the trial court
cites our decision in Great Am. Credit Corp., supra, for the proposition that
“the Superior Court has historically accounted for other court errors” in
affirming a trial court’s decision to vacate a judgment after the expiration of
the appeal period. See Trial Ct. Op. at 4 (emphasis added). However, the
court’s reliance on Great Am. Credit Corp. to justify its actions herein is
misplaced.
First, Great Am. Credit Corp. was decided prior to the enactment of
both Section 5505, which authorizes a trial court to modify or rescind an order
within 30 days after its entry, and Pa.R.A.P. 1701. See 42 Pa.C.S. § 5505
(eff. Jun. 27, 1978); Pa.R.A.P. 1701 (eff. Jul. 1, 1976).
Second, the relevant facts in that case are distinguishable. In Great
Am. Credit Corp., the guarantor of an installment note moved for summary
judgment in an action to recover the balance due. Great Am. Credit Corp.,
326 A.2d at 518. The court granted it as uncontested when the appellee failed
to file a timely answer. Id. However, the court later learned that the appellee
had requested an extension of time, but it was “inadvertently mislaid in
transmission through court processes.” Id. (record citation omitted). After
the appeal period expired, the court vacated the order granting summary
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judgment and dismissed the motion; the guarantor then filed a timely appeal.
Id.
In affirming the trial court’s grant of relief to the appellee, a panel of
this Court highlighted “the inherent power of the courts of this Commonwealth
to act where equity so demands[,]” and noted that the trial court recognized
it had “improvidently” granted summary judgment “because of its own error.”
See Great Am. Credit Corp., 326 A.2d at 519. The panel agreed with the
trial court’s decision not to “penalize” the appellee for the “court’s oversight”
particularly when the appellee assumed his extension request had been
granted and had filed an answer within the extended time period. See id. In
a footnote, the panel further explained:
[T]he appellee avers that he received a telephone call stating that
his requested extension had been granted and that a copy of
appellee’s letter to the court requesting an extension was sent to
[guarantor’s] counsel. Moreover, the delay between the entering
of the first Order and the second was, in part, occasioned by the
fact that appellee never received notice that the motion for
summary judgment had been granted. He had filed an answer
and was apparently under the impression that the court was
considering the case on the merits as presented in the motion and
answer.
Id. at 520 n.5 (emphasis added)
Thus, while at first glance, Great Am. Credit Corp. appears to lend
support to the trial court’s decision, the trial court overlooks the fact that the
aggrieved party in that case ─ unlike here ─ did not receive timely notice of
the entry of the final order. Indeed, in subsequent decisions, this Court has
distinguished Great Am. Credit Corp. on that fact. See Mfrs & Traders Tr.
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Co., 108 A.3d at 921 (explaining that in Great Am. Credit Corp., “the trial
court’s oversight deprived the defendant of notice that it had entered a final
order, triggering the appeal period[,]” but that the aggrieved party in present
case “never alleged it was unaware” the trial court entered final, appealable
order); Luckenbaugh, 523 A.2d at 402 (stating that decision affirming trial
court’s actions in Great Am. Credit Corp. was “for two main reasons[:]” (1)
court or staff misplaced appellee’s extension request; and (2) appellee “never
received notice” of entry of final order) (emphasis added). Accordingly, we
conclude the trial court erred when it found the existence of “extraordinary
cause” justifying its decision to vacate its July 18th final order more than 30
days after it was entered.
Because we agree the trial court had no jurisdiction to vacate its final
order striking RII’s mechanics’ lien claim more than 30 days after the order
was entered, we are constrained to vacate the court’s September 2, 2022,
order. Further, we direct the trial court to reinstate its July 18, 2022, order
striking RII’s mechanics’ lien claim.
Our disposition of this issue renders EAS’s final claim ─ which challenges
the substantive merit of the court’s September 2nd order ─ moot. As this
Court has explained, a trial court’s “inherent authority to correct mistakes or
errors . . . does not allow a court to make substantive changes after more
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than 30 days have passed.” Mfrs & Traders Tr. Co., 108 A.2d at 921. Thus,
the propriety of the court’s July 18th order is not before us.11
Order vacated. Case remanded with instructions. Jurisdiction
relinquished.
Judgment Entered.
Joseph D. Seletyn, Esq.
Prothonotary
Date: 8/15/2023
____________________________________________
11 Nevertheless, despite the fact that our proverbial hands are tied as a result
of RII’s failure to file a timely notice of appeal, we agree that the trial court’s
July 18th order was erroneous. As the trial court subsequently recognized,
this Court has held that a sheriff’s return of service satisfies the “affidavit of
service” requirement of Section 1502(a)(2) of the Mechanics’ Lien Law. See
Trial Ct. Op. at 3 n.4, citing J.H. Hommer Lumber Co., Inc. v. Dively, 584
A.2d 985, 987 (Pa. Super. 1990). Moreover, EAS’s assertion that “the holding
in J.H. Hommer was overruled by the Pennsylvania Supreme Court in its
2021 decision,” Terra Firma, Bldrs, LLC v. King, 249 A.3d 976 (Pa. 2021),
is simply incorrect. See EAS’s Brief at 26 n.5. The Terra Firma Court made
no mention of the J.H. Hommer decision, nor did the Court address the
propriety of a sheriff’s return of service as a substitute for an affidavit of
service ─ in fact, in that case, the aggrieved party “concede[d] it never filed
an affidavit of service” for the mechanics’ lien claim. See Terra Firma, Bldrs,
LLC, 249 A.3d at 981.
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