PRINTER'S NO. 418
No. 406 Session of 2001
INTRODUCED BY GERLACH, WAUGH, CORMAN, M. WHITE, TOMLINSON, THOMPSON AND EARLL, FEBRUARY 12, 2001
REFERRED TO JUDICIARY, FEBRUARY 12, 2001
AN ACT
1 Amending Title 42 (Judiciary and Judicial Procedure) of the
2 Pennsylvania Consolidated Statutes, providing for sanctions
3 for dilatory, obdurate and vexatious pleadings.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 2503 of Title 42 of the Pennsylvania
7 Consolidated Statutes is amended to read:
8 § 2503. Right of participants to receive counsel fees.
9 (a) General rule.--The following participants shall be
10 entitled to a reasonable counsel fee as part of the taxable
11 costs of the matter:
12 (1) The holder of bonds of a private corporation who
13 successfully recovers due and unpaid interest, the liability
14 for the payment of which was denied by the corporation.
15 (2) A garnishee who enters an appearance in a matter
16 which is discontinued prior to answer filed.
17 (3) A garnishee who is found to have in his possession
18 or control no indebtedness due to or other property of the
1 debtor except such, if any, as has been admitted by answer 2 filed. 3 (4) A possessor of property claimed by two or more other 4 persons, if the possessor interpleads the rival claimants, 5 disclaims all interest in the property and disposes of the 6 property as the court may direct. 7 (5) The prevailing party in an interpleader proceeding 8 in connection with execution upon a judgment. 9 (6) Any participant who is awarded counsel fees as a 10 sanction against another participant for violation of any 11 general rule which expressly prescribes the award of counsel 12 fees as a sanction for dilatory, obdurate or vexatious 13 conduct during the pendency of any matter. 14 (7) Any participant who is awarded counsel fees as a 15 sanction against another participant for dilatory, obdurate 16 or vexatious conduct during the pendency of a matter. 17 (8) Any participant who is awarded counsel fees out of a 18 fund within the jurisdiction of the court pursuant to any 19 general rule relating to an award of counsel fees from a fund 20 within the jurisdiction of the court. 21 (9) Any participant who is awarded counsel fees because 22 the conduct of another party in commencing the matter or 23 otherwise was arbitrary, vexatious or in bad faith. 24 (10) Any other participant in such circumstances as may 25 be specified by statute heretofore or hereafter enacted. 26 (b) Dilatory, obdurate and vexatious pleadings.-- 27 (1) By presenting to the court, whether by signing, 28 filing, submitting or later advocating, a pleading, written 29 motion or other paper, an attorney or unrepresented party is 30 certifying that to the best of the person's knowledge, 20010S0406B0418 - 2 -
1 information and belief, formed after an inquiry reasonable 2 under the circumstances: 3 (i) it is not being presented for an improper 4 purpose, such as to harass or to cause unnecessary delay; 5 (ii) the claims, defenses and other legal 6 contentions therein are warranted by existing law or by a 7 good faith argument for the extension, modification or 8 reversal of existing law or the establishment of new law; 9 (iii) the allegations and other factual contentions 10 have evidentiary support or, if specifically so 11 identified, are likely to have evidentiary support after 12 a reasonable opportunity for further investigation or 13 discovery; and 14 (iv) the denials of factual contentions are 15 warranted on the evidence or, if specifically so 16 identified, are reasonably based on a lack of information 17 or belief. 18 If, after notice and a reasonable opportunity to respond, the 19 court determines a violation, the court may, subject to the 20 conditions stated in paragraphs (2) and (3), impose an 21 appropriate sanction upon the attorneys, law firms or parties 22 that are responsible for the violation. 23 (2) A motion for sanction under this subsection shall be 24 made separately from other motions or requests and shall 25 describe the specific conduct alleged to violate paragraph 26 (1). It shall be served as provided by rule, but shall not be 27 filed with or presented to the court unless, within 31 days 28 after service of the motion, or such other period as the 29 court may prescribe, the challenged paper, claim, defense, 30 contention, allegation or denial is not withdrawn or 20010S0406B0418 - 3 -
1 appropriately corrected. If warranted, the court may award to 2 the party prevailing on the motion the reasonable expenses 3 and attorney fees incurred in presenting or opposing the 4 motion. Absent exceptional circumstances, a law firm shall be 5 held jointly responsible for violations committed by its 6 partners, associates and employees. 7 (3) On its own initiative, the court may enter an order 8 describing the specific conduct that appears to violate 9 paragraph (1) and directing an attorney, law firm or party to 10 show cause why it has not violated paragraph (1) with respect 11 thereto. 12 Section 2. This act shall take effect in 60 days. A12L42SFL/20010S0406B0418 - 4 -