Borough of Franklin Park, PA Chapter 19 Claims, Municipal

[HISTORY: Adopted by the Borough Council of Franklin Park as indicated in article histories. Amendments noted where applicable.]

Article I Attorney Fees, Servicing Charges, Expenses, and Fees

[Adopted 5-17-2023 by Ord. No. 676-2023][1]]

[1] Editor's Note: This ordinance also repealed former Art. I, Attorneys' Fees for Collection, adopted 10-21-1998 by Ord. No. 462-98. This ordinance also retitled the article from "Attorneys' Fees for Collection" to "Attorney Fees, Servicing Charges, Expenses, and Fees."

§ 19-1 Delinquent Tax Collector.

Borough Council shall appoint by motion or resolution a law firm and/or its affiliated entity to serve as Delinquent Tax Collector. All attorney fees, servicing charges, expenses, and fees set forth in this article for the services of the Delinquent Tax Collector may be amended, modified, or revised by Borough Council by ordinance or resolution from time to time and shall be in full force and effect as stated in the effective date of such ordinance or resolution.

§ 19-2 Title search expenses approved.

A. In any enforcement proceeding, the actual cost of a title search in an amount not to exceed $300 shall constitute a reasonable expense for each title search necessary for the initiation of each proceeding and compliance with Pa.R.C.P. 3129. The sum not to exceed $75 shall constitute a reasonable expense for each bringdown or update of the title search in connection with entry of judgment, issuance of execution, listing for sale, or other action.

B. Actual out-of-pocket expenses in connection with any enforcement action, such as for postage, non-Sheriff's service of process, investigation of the whereabouts of interested parties and other necessary expenses shall constitute reimbursable expenses as part of each claim recovered.

§ 19-3 Attorney fees approved.

A. Flat fee matters. The following schedule of Attorney fees is hereby adopted and approved as reasonable Attorney fees pursuant to Act 1 and Act 20 for all matters described, which fees shall be awarded to the Borough, its agents, counsel or assigns in each action initiated pursuant to the Act for the collection of unpaid claims. The property owner's obligation to pay the full amount of the flat fee for each phase of each action shall accrue upon the initiation of any aspect of each phase. The full amount of each flat fee for each prior phase of the proceeding shall carry over and be due on a cumulative basis together with the flat fee for each subsequent phase.

(1) Preparation and service of Writ of Scire Facias and civil process thereafter. The sum of $500 shall constitute reasonable Attorney fees for the initiation of each proceeding, and shall include preparation and filing of the Praecipe for Writ of Scire Facias, Sheriff's direction for service, Notice pursuant to Pa.R.C.P. 237.1 and the preparation and filing of the Praecipe to Settle and Discontinue the proceeding. An amended and reissued Writ of Scire Facias shall constitute a separate proceeding for attorney fee purposes. The above does not include:

(a) Federal tax liens, judgments and mortgages. Where there are federal tax liens, federal judgments, federal mortgages or other record federal interests, the sum of $250 shall constitute reasonable Attorney fees for all matters necessary to properly notify and serve the United States with all required additional notice and the presentation of related motions to Court.

(b) Amendment of caption. In the event that a Special Order of Court is necessary relative to the name or identification of parties, $250 shall constitute a reasonable Attorney fee for the necessary research, preparation of the motion, preparation of the proposed order of court, party notices and presentation of the same.

(c) Alternative service of legal pleadings. In the event that a Special Order of Court is necessary to serve original process or any other pleading, notice, court order or other document, the following amounts shall constitute reasonable attorney fees as follows:

[1] Investigation of Defendant(s) whereabouts and preparation of Affidavit of Diligent Search: $100.

[2] Preparation and Presentation of Motion for Alternative Service, and delivery of the Order of Court, along with appropriate directions to the Sheriff for service: $250.

(2) Entry of judgment. The sum of $250 shall constitute reasonable Attorney fees in connection with entry of judgment which shall include preparation and filing of the Praecipe to Enter Judgment, Notices of Judgment, Affidavit of Non-Military Status, and the Praecipe to Satisfy Judgment.

(3) Writ of execution - sheriff's sale of property. The sum of $1,000 shall constitute reasonable Attorney fees for preparation of all documents necessary for each execution upon any judgment pursuant to the Act. This sum shall include the preparation and filing of the Praecipe for Writ of Execution, all Sheriff's documents, preparation and service of Notices of Sheriff's Sale, staying the Writ of Execution, and attendance at one Sheriff's Sale.

(a) Postponements. The sum of $100 shall constitute reasonable attorney fees for each continuance of Sheriff's Sale at the request of the defendant.

(4) Sale pursuant to § 31 of the Act, 53 P.S. § 7281. The sum of $700 shall constitute reasonable Attorney fees for the sale of property pursuant to § 31 of the Act, 53 P.S. § 7281 including preparation and service of necessary documents, court appearances, attendance at Sale and preparation of proposed schedule of distribution of the proceeds realized from such Sale.

(5) Sale pursuant to § 31.1 of the Act, 53 P.S. § 7282. The sum of $700 shall constitute reasonable Attorney fees for a sale of property pursuant to § 31.1 of the Act, 53 P.S. § 7282, including the preparation of necessary documents, service, court appearances, and the preparation of proposed Sheriff's Schedule of Distribution.

(6) Installment payment agreement. The sum of $200 shall constitute reasonable Attorney fees for the negotiation, preparation and monitoring of each written installment payment agreement.

(7) Final notice before Sheriff Sale. The sum of $50 shall constitute reasonable Attorney fees for the preparation, monitoring and follow-up of a Final Notice Before Sheriff Sale.

(8) Motions. The sum of $250 shall constitute reasonable Attorney fees for the preparation, filing, and presentation of motions, other than those otherwise stated herein, including, but are not limited to, motions to reassess damages, motions to amend caption, motions to continue the Sheriff's Sale.

(9) Delinquency letters/notices. A sum of $10 per letter shall constitute reasonable Attorney fees and/or cost for the preparation of miscellaneous letters, notices or other correspondence to taxpayers and/or their designated legal counsel that is not associated with the transmission of pleadings, motions or similar civil process following an Act 20 Notice.

(10) Assumpsit actions. If an assumpsit action is initiated in lieu of a Writ of Scire Facias, the sum of $500 shall be applied for the preparation of filings, notices and appearances at the Magisterial District Justice. Transfer of judgment(s) and execution thereof shall be treated in a similar manner as a Writ of Execution with associated fees.

B. Hourly rate matters.

(1) The following schedule of Attorney fees is hereby adopted and approved as reasonable Attorney fees pursuant to Act 1 and Act 20, which fees shall be awarded to the Borough, its agents, counsel or assigns as compensation in all contested matters, and in all other matters not specifically referenced in § 19-3A, above, undertaken in connection with the collection of claims:

(a) Senior attorneys: $195 per hour.

(b) Junior attorneys: $165 per hour.

(c) Paralegals: $95 per hour.

(d) Law clerks: $95 per hour.

(2) These fees will be recorded and charged in units of 1/10th of an hour for all time devoted to enforcement and collection of the Borough's claims. Counsel, whether duly employed or duly appointed by the Borough, its agents or assigns, shall not deviate from this fee schedule absent a subsequent resolution amending the same. Hourly rate matters include, but are not limited to, any matters where any defense, objection, motion, petition or appearance is entered in any phase of any proceeding by or on behalf of any defendant or other interested party.

§ 19-4 Procedures.

A. Required notices. The notice required by the Act, as amended, 53 P.S. § 7106, or other relevant law shall be provided in accordance therewith and shall be incorporated into an appropriate delinquency notice or notices sent by the Borough, its agent, counsel or assigns.

B. Fees to be accrued and claims to be filed. Fees shall accrue for all efforts in collection after the 30th day of the notice, or after the 10th day of any required second notice under the Act, as amended, 53 P.S. § 7106, on all accounts referred to counsel for enforcement. Fees accumulated as a result of enforced collection shall be certified by duly appointed counsel for the Borough authorized to pursue collection of claims pursuant to the Act, or by counsel for the Borough's agents or assigns and, if not collected in due course with the debt as by voluntary payment, shall be included in any claims filed on behalf of the Borough or by its agents or assigns in the course of enforcement including any claims originally filed with the Department of Court Records, any claims filed with the Sheriff or in any other claims filed or statements provided where attorney fees are due.

C. The amount of fees determined as set forth above shall be added to and become part of the claim or claims in each proceeding as provided by the Act and as provided herein.

§ 19-5 Servicing charges, expenses, and fees approved.

A. This schedule of charges, expenses, and fees (hereinafter collectively referred to as "servicing fees") is hereby approved and adopted by the Borough pursuant to § 1, § 2, and § 3 of the Act of May 16, 1923, as amended, 53 P.S. §§ 7101, 7103 and 7106, which amounts are the direct result of each person's or property's failure to pay claims promptly. The servicing fees established, assessed, and collected hereunder shall be in addition to the record costs, § 19-3, Attorney fees, and § 19-2 title search expenses associated with legal proceedings initiated by or on behalf of the Borough to collect its claims.

B. Servicing of a claim or claims may result in voluntary payment without initiation of enforcement proceedings. It is the intent of this section to pass the cost of service on to the delinquent person or property as part of each claim. The recovery of servicing fees established herein shall not be contingent upon the initiation of enforcement proceedings. However, such servicing fees are due even where enforcement proceedings are initiated. The purpose of this section is to pass the cost and expense associated with delinquent collection on to the delinquent person or property and to make the Borough whole on all claims collected.

C. Schedule. The following schedule of fees shall constitute reasonable and appropriate service fees for each indicated service. The servicing fees shall be added to and become part of the Borough's claims, together with the face, penalties, interest, costs and Attorney fees and shall be payable in full before the discharge or satisfaction of any claim. The schedule of fees is separate and distinct from any amounts imposed by the Sheriff, Department of Court Records, Court, or any other public office in connection with the collection of the Borough's claims.

(1) Assignments: $5 per claim.

(2) Letters and notices: $10 per letter.

(3) Filing tax liens: $5 per item.

(4) Satisfactions: $5 per claim.

(5) Tax claim revivals (i.e., S&A): $10 per claim.

(6) Tax certifications:

(a) Regular delivery: $50 per parcel.

(b) Rush (one to two business day): $100 per parcel.

(7) Sheriff sale claim certificates: $50 per case.

(8) Servicing including staffing, computers, office space, telephones, equipment and materials:

(a) For all delinquent and liened taxes, tax liens, municipal claims (filed or unfiled) and municipal liens: 10% of gross collections

(9) Postage and court costs: Actual cost.

(10) Payment plan Before Act 20 notice: $100.

§ 19-6 Effective date and retroactivity.

A. This chapter shall take effect on the date of enactment set forth below and with respect to Attorney fees pursuant to §§ 19-3 and 19-4 shall apply to all taxes, tax claims, tax liens, municipal claims, municipal liens, Writs of Scire Facias, Judgments, or Executions filed on or after December 19, 1990, or as otherwise provided by law.

B. In no event shall the Borough's right to charge and collect reasonable Attorney fees pursuant to §§ 19-3 and 19-4 of this chapter be impaired by the fact that any claim may also include an attorney commission of 5% for claims filed prior to December 19, 1990. Any attorney fees assessed and collected under this or any prior resolutions pursuant to Act 1 shall be in addition to any 5% commission previously included in any claim or judgment thereon.

C. Attorney fees and expenses incurred in pending enforcement proceedings prior to the effective date of this chapter, pursuant to prior resolutions or ordinances adopted under Act 1, but not collected, shall remain due and owing in accordance therewith, and shall be incorporated in any further statement, claim, pleading, judgment, or execution, attorney fees and expenses in any pending or new action incurred after the effective date of this resolution shall be incurred, charged, and collected in accordance with the schedules and procedures set forth in this resolution.

D. The charges, expenses, and fees set forth in § 19-5 of this chapter relate to all unpaid claims in favor of the Borough, its agents and assigns, and shall be retroactive to the date of each claim.