How A Landlord May Terminate a Real Estate Lease Via Pennsylvania Courts
There are three methods by which a real estate lease may be terminated in Pennsylvania:
- Termination By Mutual Agreement
- Termination By Intervening Events
- Termination By Breach of Lease
Landlords will have all remedies bargained for in the lease agreement with the tenant subject to certain statutory and case law limitations and prohibitions. For instance, the Bethlehem Housing Authority lease includes provisions granting to the landlord certain remedies upon default. The procedures for implementing remedies also may be included in the lease agreement.
If the tenant does not pay the rent or if the landlord suffers other damages caused by the tenant’s breach of the lease agreement, the landlord may sue in court. Landlords must “make demand” for rent before the tenant is in default. And, no legal action may be commenced until proper demand is made. (Elizabethtown Lodge No. 596 v. Ellis, 391)
Filing a complaint
The action is commenced by filing a complaint (Magisterial District Rules of Civil Procedure Rule #303) on a prescribed form (MDRCP Rule #304) with the District Justice in the Magisterial District where the tenant may be served or where the cause of action arose (MDRCP Rule #302), and by paying the applicable fees and costs.
The District Justice is required to set a hearing date on the plaintiff’s complaint (MDRCP Rule #305) which date cannot be sooner than 12 days or later than 60 days after filing of the complaint. The defendant must be served with a copy of the complaint (MDRCP Rule #307-313) at least 10 days prior to the hearing. The service must be “returned” – that is, made upon the defendant within 50 days of the filing of the complaint and the return of service must comply with all applicable requirements (MDRCP Rule #314).
The defendant’s rights
Up to five days before the scheduled hearing, the defendant may file a cross-complaint to the plaintiff’s complaint or may assert any other claim against the plaintiff (MDRCP Rule #315). By filing a counter claim or defendant’s complaint, the hearing on both complaints must be held no sooner than 12 days nor later than 30 days from the filing of the defendant’s complaint (MDRCP Rule #315).
At the hearing, each party may present documentary evidence and testimony of witnesses. The district justices are bound by the rules of evidence, including the rule excluding hearsay evidence. There is an exception, however, for certain bills, estimates, receipts and statements of accounts which appear to be made in the ordinary course of business. These may be introduced into evidence without evidence of their truth or accuracy (MDRCP Rule #321). This does not mean that any such evidence cannot be contradicted or impeached by testimony of an adverse party.
Judgement and enforcement
After the hearing, the district justice must render a judgment within five days, and is required to promptly give the parties written notice of the judgment. If a judgment for money is entered, the district justice has the right to specify that the judgment be paid in installments provided that the installments do not extend beyond twelve months from the date of judgment.
The procedures for enforcement of a judgment for money in the District Justice Court are included in Magisterial District Rules of Civil Procedure Rules 401 through 421. Enforcement of the judgment cannot be commenced until the time for appeal has expired for the party against whom the judgment was rendered.
Either party may appeal the decision of the District Justice any time within 30 days following the entry of the judgment by filing a form with the Prothonotary or Clerk of Court on the prescribed form and paying the applicable filing fee. No appeal bond is required. Notice of the appeal must be given by the appellant to the Appellee by personal service or by certified or registered mail.
A complaint must be filed within 20 days following the appeal. Pleadings then proceed according to the Pennsylvania Rules of Civil Procedure and the case proceeds de novo as if the case before the District Justice had not taken place (MDRCP Rule #1007).
Except for actions involving recovery of possession of real estate, the appeal acts as a supersedeas. That is, no judgment can be executed upon the prevailing party once an appeal is taken. If the appeal is stricken or terminated then the prevailing party may execute on the judgment.
If the tenant has breached the lease by failing to pay rent on time or by violating another material term of the lease agreement, the landlord has the remedy of recovery of possession. This remedy also may include a claim for recovery of damages including the unpaid rent and any other damages suffered by the landlord caused by the tenant’s breach of the lease agreement.
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