You may have noticed the word “(Seal)” printed on a contract, deed or mortgage after the place where the parties sign. Many assume that this is just a touch of medieval style.  True, wax seals are not used very often and even embossed seals are becoming rare. But under Pennsylvania law, a signature under seal on a legal instrument has at least one consequence.

The statute of limitations for bringing suit under written contracts is generally four years. Section 5525(a)(8) of the Judicial Code states:

“. . . an action upon a contract, obligation or liability founded upon a writing not specified in paragraph [a](7), under seal or otherwise, except an action subject to another action specified in this subchapter.” 42 Pa. C. S. Sec. 5525(a)(8).

However Section 5529(b)(1) provides:

“Notwithstanding Section 5525[(a)] (7) (relating to four year limitation), an action upon an instrument in writing under seal must be commenced within 20 years.”

Thus, was the issue framed in in the recent Pa. Supreme Court decision of Osprey Portfolio, LLC v. Izett at Case No. 68 MAP 2012, decided May 28, 2013, the full text of which is available through Google Scholar. What is an “instrument under seal” as the term is used in Section 5529(b)(1)?  The answer determines whether suit may be filed within only four years or twenty years.

Appellant, while conceding that the document at issue, a guarantee, was a writing under seal, it asserted that the court should apply the definition of the word instrument found in Article 3 of the UCC: “an unconditional promise or order to paya fixed amount of money.” 13 Pa. C.S. Sec. 1104(a), (b).  Appellant argued that a guarantee did not fall under this definition because it was preconditioned by the default of the debtor. In addition, the Appellant argued that the underlying obligation was in the nature of a line of credit, not a borrowing of a fixed amount. Otherwise, Appellant stated, every contract under seal would have a 20 year statute of limitations and the relevant portion of Section 5525 would be inoperable.

The Supreme Court held that the quoted language of UCC 3 applied to negotiable instruments, as therein defined, not to instruments generally.  ”There is nothing to suggest that Section 5501 was intended to import such construction into Chapter 55 of the Judicial Code . . . Moreover,Article 3 of the UCC has no application in this case, as the parties agree that the guaranty at the center of this controversy is not a negotiable instrument.”

Because the Judicial Code did not define the word :”instrument”, the Court applied the term’s ordinary meaning.  The Court referred to  Black’s Law Dictionary and Webster’s New World College Dictionary, concluding that an instrument is “a written document defining rights, duties, entitlements, or liabilities, such as a contract, will, promissory note, or share certificate.”

The Court then concluded that a written guaranty falls within this definition.

The Court took note of the concern expressed by the Appellant that the broader interpretation of the word instrument would result in the words “under seal” being deprived of meaning in the section involving the four year limitation period.  However, the Court  observed that the four year language contemplated that it might be overridden, at least in some instances.  But more importantly, the 20 year provision expires on June 27, 2018.  Thus, if the 20 year exception is not renewed, the statute of limitations for written contracvts and instruments will be four years.

CLT

When the Islanders won the second and fourth games of the quarter-finals with the Penguins, panic set in on the streets of Pittsburgh. How could this happen to what the fans regarded as the best team in hockey?

The answer is, of course, quite easily.  As a post in Freakonomics pointed out during last fall’s World Series, a seven game series does not contain enough data points to be statistically valid.  As a matter of fact, the team with the best record, as measured on several different scales, won the championship only about 1/3 of the time.

But don’t freak yet.  The Penguins are up three games to two.

CLT

The fiftieth anniversary of the United States Supreme Court decision Gideon v. Wainwright occurred recently. The Court held that Fourteenth Amendment due process required that a criminal defendant be given the assistance of counsel and if he could not afford it, it must be furnished by the government without charge.  Its a simple idea, but so fundamental that the courts have been exploring it for five decades.

In an increasingly specialized world, it is hardly surprising that very few non-lawyers are able to defend themselves against even a relatively minor criminal charge. It takes more than knowledge and preparation, it takes experience. That’s just the way it is.

The Pittsburgh Post Gazette has chronicled the struggle in Allegheny County to provide an effective public defender service for many years.  There have been shake-ups and funding increases from time to time.  The most recent article, which may have expressed a degree of optimism for the first time in quite a while, appeared this past Sunday.

Perhaps the shortcomings that are being addressed in our county are typical. They are ingrained in the system and may not be susceptible to an adequate remedy. But they must be addressed.  Our adversarial judicial system doesn’t work on any level unless there is adequate representation on both sides.  Thats just the way it is.

CLT

When the new Pope chose the name Francis, most saw it as the adoption of the great St. Francis of Assisi (1181 – 1226) as the patron saint of his papacy.  However, others were quick to point out that the new Pope is a Jesuit, not a Franciscan, and that co-founder of the Society of Jesus, St. Francis Xavier (1556 – 1552) may have been intended.

But then, as I remember, there is still another: St. Francis De Sales (1567 – 1622), Bishop of Geneva and patron of writers.

Then, consulting Wikipedia,I learned  that there are a multitude of Saints named Francis. In addition to the three above, there are:

• St Francis of Paola (1416 – 1507), founder of the Order of the Minims;

• St. Francis Borgia (1510 – 1572), the third leader of the Jesuits;

• St. Francis Solanus (1549 – 1610), a Spanish Franciscan missionary to South America, including Argentina;

• St. Francis Caracciolo (1563 – 1608), co-founder of the Congregation of Minor Clerics Regular;

• St. Francis Ferdinand de Capillas (1607 – 1716), Dominican Missionary, first Roman Catholic martyr in China;

• St. Francis de Geronimo (1642 – 1716), Italian Jesuit.

And that does not include saints named Frances.

And of course, all or most of the other Sts. Francis were probably named in honor of the original.

CLT

Sounds like a movie script.  The U.S., under attack by hackers from China and Iran,  recruits teenagers to form an elite corps of counter-hackers.  In this case, Carnegie Mellon and NSA are recruiting a cybersecurity squad.  Interestingly, CMU may well have trained a few of the enemy combatants, too.  The related PhD programs at CMU and other institutions of the first rank are filled with candidates from China, most of whom return home, if for no other reason than the expiration of their immigration permits.

Nevertheless, cyber warrior sounds like a good career opportunity. And unlike traditional wars, you don’t have to worry about being shot, shot down or captured by the enemy.

CLT

Time Magazine’s cover story was about Sheryl Sandberg, COO of Facebook, who recently published a book called “Leaning In”, which analyzes the reasons why, in her opinion, the progress of women in the workplace has stalled.  Sandberg has the reputation of a super achiever, so her ideas are worth something.

A sign on her office wall says: “Prioritize Ruthlessly.”  Pretty good advice.

CLT

FYI: the City of Pittsburgh, the City School District and the County all have increased their Homestead exemptions.  If your assessment is low (like in the 20′s) your real estate taxes are going to be very, very low.  You may not be paying any school taxes at all. The City increased the Homestead Exemption from $10,000 to $15,000.  The School District set its Homestead Exemption at $28,000.  And the County raised its Homstead exemption to $18,000. But if you fit into those categories, you already know.

And then, there is the Act 77 Senior Citizen Exemption. Click on the link to the left if you think you might qualify.

CLT

Duquesne Law School had practically dropped off the U.S. News Law School Rankings, something which every lawyer in this town, no matter where they went to law school, knows is ridiculous.  Well, thanks to a variety of factors, including a revamping of the ranking criteria, that is no longer the case.

The 2014 law school rankings listed Duquesne as number 144.

CLT