I had intended to gloat about my glorious victory in front of the District Justice (also known as the Local Magistrate) in Perkasie on Friday morning. I should have been doing an end zone dance, or at the very least sipping the sweet taste of victory with a Starbucks coffee. Unfortunately for me, we lost our case and now my client was asking what the next step is.
Well the first step is to whine… well no, not really. I’m not saying I didn’t let an expletive or two out after hearing that we lost, but I’m not not saying it either.
So after getting over the sting of losing a case that should have genuinely been won, what is the next step?
Well the next step is not to ignore it, and at least my client understood that. In Pennsylvania, a magistrate’s decision is only final if the losing party does not decide to appeal the decision. If the decision is appealed, the case is reviewed de novo (as if the first case never happened) at the Court of Common Pleas level, or as my client put it, “Big Boy Court.”
This is not to disparage the position of District Justice nor this particular judge’s decision (no matter how wrong it actually was), in my experience with District Justices, they have neither the time or capacity to understand every case that goes in front of them.
Once a District Justice has rendered his or her decision, the parties are notified in the mail of the result of that decision and are given thirty days to file an appeal. The cost to file an appeal in Berks County is $215.50 (each county is different) and the appeal must be filed in 30 days.
The appeal is essentially a generic document that starts the process all over again, and because the hearing before the Magistrate is not a matter of record, your opposition is given twenty days to file their complaint or they could be subject to what is called a judgment non pros. A judgment non pros basically says that you did not file your complaint so the Magistrate’s decision is overturned and you lost your case.
For the plaintiff all is not lost, unless the case is dismissed with prejudice, they can file the case again, but since they have already expended the money necessary to file the first case and have nothing to show for it, chances are they will go away.
So what should we do in this particular case. Without giving information that would reveal my client’s identity (I would never violate privilege like that) here is the story.
My client, Steve (the name is changed to protect the innocent) is being sued by Discover (the name is not changed because we know Discover is a slimy company) for a credit card. The balance they claim owed is $
9500. By all rights, they shouldn’t have even filed at the District Court level because the Magistrate is capped at $8000 in damages, however due to some sneaky maneuvering, Discover still managed to get a judgment for $9500.
Discover claims that Steve last paid this card in June 2010, but it is possible this card was taken out in his name by someone else, it is also possible that this is card from way in the past that his significant other (my father would have called it living in sin) had been using and paying. Steve is one of those clients who can honestly say he doesn’t remember having an account.
We have what appears to be a potential statute of limitations case here. The statute of limitations in Pennsylvania is four years on debt, but the statute starts at the date of last activity (payment). You’re probably thinking, four years from 2010 gets you into 2013, why a statute of limitations issue. The reason is that Discover says that the last payment was made in June 2010, it doesn’t mean they can prove it. They had no canceled check, no payment confirmation, nothing but the integrity of the bank not to make a mistake or be deliberately underhanded. Yeah me too, I’m not giving them the benefit of the doubt on this one. Produce a canceled check or it didn’t happen. Opposing counsel actually had the nerve to argue that these payments posting helped my client because it lowered his balance, I brought up the statute of limitation argument.
Opposing counsel also had the nerve to bring up the Fair Credit Reporting Act which requires a person to dispute something on their credit card within 60 days of receiving the statement, yet Discover did not have proof of mailing.
In any event, my strategy is going to be to file the appeal on day 29 to burn more of the statute of limitations. If Discover loses the case, the statute of limitations will still be from the last legitimate payment date, furthermore by filing the appeal on day 29, there is a better chance that this appeal gets ignored and judgment non pros is entered. By day 20, the winner at the magistrate level is usually pretty secure in their victory and may be counting their money in their head. In my experience, a complaint in an appeal is more likely to be filed with a later appeal filing.
So in a few weeks, we will be filing our appeal and I am expecting Discover Card to put up a fight, but they’d better be better than they were Friday in Perkasie, because none of the crap they got away with in front of the magistrate is going to fly in Big Boy Court.
