Pittsburgh Legal Back Talk

Legal topics of interest to lawyers and consumers with a Pittsburgh and Western Pennsylvania focus.

1410 Posts and Counting

Will the Federal Mortgage Modification Guidelines Change the Game?

Posted by Cliff Tuttle| February 19, 2009 | © 2026

Posted by Cliff Tuttle

President Obama announced in a speech on February 18 that federal guidelines for mortgage modification would be appearing in about two weeks that would apply to any home mortgage lender receiving federal bailout assistance. PNC Bank, who received such assistance when it acquired National City Bank, anticipated this announcement by suspending foreclosure activity until the regulations are made public.

Public attention is starting to focus on mortgage modifications as a means of turning back the tide of individual tragedies as well as strengthening the economy and the banking system. This is not simply a matter of keeping families in homes. A resumption of the flow of payments, where feasible, from borrowers who became mired in the foreclosure trap but have enough income to make substantial, even full payments if the delinquency could be handled, would be a boost to beleaguered mortgagors. It becomes increasingly evident that the circumstances of delinquent borrowers are quite different and that many can be solved with the application of common sense. The New York Times reported today that some lenders have modified a substantial number of mortgages in foreclosure. On the other hand, Wells Fargo, to name one, has modified very few as a percentage of the total in foreclosure. Some of these lenders argue that they are only servicers and blame the problem on the recalcitrance or slowness of investors to approve modifications. But if they intend to accept bailout funds, they will have to find a way to bring the investors on board. While the doings of the trusts that own a vast number of residential mortgages have always been shrouded in secrecy, there is some evidence that this ice jam is starting to break.

As the Allegheny County Court of Common Pleas begins mediating mortgage foreclosures, the federal guidelines may provide a means for accelerating the resolution of local cases. Home lenders who receive bailout funds should come prepared to make offers consistent with the guidelines. Having a tangible, enforceable standard to measure lender compliance should make a great deal of difference in the mediation process.

Judges are skilled and experienced in encouraging litigants to settle cases. The judge can turn the heat on a plaintiff by refusing to permit a case to proceed with foreclosure until it makes a good faith offer, consistent with the guidelines. The judge can also motivate a bewildered defendant to accept a reasonable offer. Often, a skilled mediator can suggest the middle ground and close the gap between the two parties’ positions. Hopefully, this process will result in the resolution of many cases, yielding economic benefits to both parties, the region and the country.

CLT

Category: Uncategorized

Introducing Philadelphia Immigration Lawyer Blog.

Posted by Cliff Tuttle| February 18, 2009 | © 2026

Posted by Cliff Tuttle

Pittsburgh Legal Back Talk is adding Philadelphia Immigration Lawyer Blog to its blogroll. Although the author, Philadelphia immigration lawyer Jim Tyler, has only posted once in 2009, the posts from December appear to be of high quality. This blog could be a valuable resource to someone in search of information about immigration law, an increasingly important subject. PLBT will be keeping an eye on this and other blogroll blogs and reporting on them from time to time.

CLT

Category: Uncategorized

Time is Running Out to Register Rental Properties in the City of Pittsburgh.

Posted by Cliff Tuttle| February 18, 2009 | © 2026

Posted by Cliff Tuttle

The City of Pittsburgh’s Residential Rental Registration Ordinance requires that all residential landlords must be registered no later than April 1, 2009 or face a fine up to $1,000 per unit per month. The first step is to report to the Bureau of Building Inspection at Room 320 at 200 Ross Street. The best time is probably 8:00 AM, the opening bell. Don’t come any later at 2:00 — even that may be too late. Expect a substantial wait at most times, probably an hour. Food and drink is available from vending machines if you become weak from standing. The application fee is $25.00 per unit.

If you don’t have an occupancy permit. this will be your next step, followed by a trip to the cashier — they’ll gladly show you where to go. Most single family residences do not have occupancy permits, since it was not required, at least not until now. Be prepared to pay $40.00 per permit.

There may also be other zoning issues involving multiple units without occupancy permits or with occupancy permits specifying fewer units. If you think you have one of these, it is best to get started right away.

When you complete the day’s activities, you are just getting rolling. You will be instructed to contact a designated building inspector to have an on-site inspection.

The permits cost $12 per unit and must be displayed at the residence. That will be interesting — I wouldn’t trust my original permit in the house with the tenant. However, if the tenants trash them, don’t worry. You’ll be getting another one for another $12.00 per unit next year and every year.

Of course, there is a reason for maintaining this expensive data base. Chapter 670 of the City of Pittsburgh Code of Ordinances is entitled: “Disruptive Property Abatement”. If you are a landlord in the City, you need to know something about this ordinance.

The City Council has authorized the Director of Public Safety . . . “to charge the cost of law enforcement resulting from authorities being called to a disruptive property to the property owner in order to deter repeated violation of state and local law, and to pursue misdemeanor charges against the owner and/or occupant of a disruptive property when disruptive activity (as defined herein) remains unabated over an unreasonably long period of time.”

The list of City Ordinances classified as disruptive activity is rather extensive. It runs the gamut from noise control to drugs. And yes, Arlo, littering is included, too.

670.2(b): “When the Director determines that the owner(s), tenant(s) or occupant(s) of a property, or any person present at the property with the permission and knowledge of he owner(s), tenant(s) or occupant(s), has either been arrested or issued a citation or summons for disruptive activities occurring on the property on three (3) separate occasions within any sixty day period, the director my declare the property a disruptive property and proceed with the notice and enforcement procedures set forth in this chapter.”

More about this fascinating ordinance soon.

CLT

Category: Uncategorized

What Does Peanut Corporation of America Bankruptcy Mean to Salmonella Victims?

Posted by Cliff Tuttle| February 15, 2009 | © 2026

Posted by Cliff Tuttle

Peanut Corporation of America, besieged by reports of death and widespread illness due to salmonella contamination in its products and grossly unsanitary conditions in some of its manufacturing plants, filed Chapter 7 Bankruptcy on Friday, February 13. The story is rightfully making headlines around the world.

So, Chapter 7, as most people know, means liquidation. The Peanut Corporation of America is out of business and its property will be marshaled and sold. The secured creditors have first claim on the assets secured by first mortgages and certain types of liens, but that may make little difference. The contaminated, stigmatized plant and machinery are worthless — worse than worthless. No one will ever buy it, not even after it has been cleaned it up at great expense. Chances are, there would be no buyers for the vacant lot, even if the building were carted away. Whatever cash or uncontaminated assets there may be will undoubtedly be used up in bankruptcy administration costs and fees for the debtor’s attorneys.

Does that mean that the families of the nine people who died and many others seriously sickened are unable to obtain compensation through the courts? Probably not. But the outcome in individual cases will depend on many factors.

The type of claim that salmonella victims are likely to bring is called “products liability.” There are several products liability theories that may be applicable, depending upon the specific facts of the case, the law of the state where suit is brought and the target defendant. Without going into detail, all parties in the chain of distribution of a dangerous or defective product may be liable under statutes enacted to protect users of the product. That means that attorneys representing victims of salmonella poisoning from products originating with Peanut Corporation of America will be looking at where the product went after it left the plant and whose brand name is on the package. In some cases, evidence concerning the contamination and injury, as well as the chain of distribution, may be readily available. In others, evidence of some element of the case may be difficult or impossible to obtain.

If you think that you or a member of your family may have been a victim of salmonella poisoning, preserve all of the evidence and find a lawyer who has a background in this field of litigation.

CLT

Category: Uncategorized

Real Estate: Who will Get the proposed $15,000 Tax Credit for Buying a New Home? Sellers, of Course!

Posted by Cliff Tuttle| February 14, 2009 | © 2026

Posted by Cliff Tuttle

Over 35 years of handling real estate transactions, both as a lawyer and (years ago) a real estate broker, I have had the opportunity to observe the interaction between the price of real estate and other financial factors. In the days when a sales transaction did not immediately affect the assessment of a property, a low tax assessment was a selling point and increased the selling price. Similarly, when home loan interest rates go up, sales prices go down. When interest rates go down, that’s right.

The proposed $15,000 tax credit for home purchases, embedded in the stimulus legislation before Congress, may very well serve to stimulate the home sales market. But don’t think that the tax credit, if adopted, will mean a $15,000 bonus for buyers. History says that sales prices will rise to give most, perhaps all, of the $15,000 to the seller.

If a buyer could have purchased a house for $100,000 before the tax credit but doesn’t and later pays $115,000 after the tax credit is enacted, who gets the $15,000?

Another observation from experience: markets anticipate the future. It may already be too late to purchase the house for $100,000. Sellers are watching to see whether the tax credit is adopted and postponing making reductions in their asking price.

CLT

Category: Uncategorized

Pittsburgh Legal Back Talk is 235th most visited law blog

Posted by Cliff Tuttle| February 13, 2009 | © 2026

Posted by Cliff Tuttle

Avvo informed us that Pittsburgh Legal Back Talk is currently the 235th most visited on its list of Top Legal Blogs. This is based upon the rankings by Alexa, the Web Information Company. On February 12, 2009, Alexa gave PLBT a traffic rating of 3,276,329. That means that there are 3,276, 328 sites with more traffic. No. 1 rank by Alexa is Yahoo.com, No. 2 is Google, No. 3 is You Tube.

The No. 1 Law Blawg is the Volokh Conspiracy with an Alexa Traffic Rank of 38,322. No. 2 is Above the Law, ranked at 42,184. There are six sites among the Avvo Top Legal Blogs that have Alexa ratings above 100,000. Brian Cuban’s blog (brother to the Dallas Mavericks’ colorful owner, Mark Cuban and a lawyer in his companies) just misses the Alexa top 100,000.

For perspective, No. 200 on the Avvo list is Michigan Collections Law Blog with an Alexa rank of 2,397,228. Law Links Health Links (Avvo 250) ranks at 3,945,863. Law Library Letter (Avvo 300) is ranked 8,062,469 by Alexa.

Avvo’s No. 349, the last on the Avvo list with an Alexa rank, Qui Tam Help, comes in at 27,991,255 with Alexa.

Thanks to Avvo and Shalini Gujavarty, Avvo’s Legal Community Manager, for helping to bring Pittsburgh Legal Back Talk to the attention of legal blog readers. Thanks to all of you for reading.

CLT

Category: Uncategorized

Client Confidentiality Includes the Identity of the Client.

Posted by Cliff Tuttle| February 12, 2009 | © 2026

Posted by Cliff Tuttle

As lawyers, we all are pledged and obligated to client confidentiality. We can forget that this can extend to the very fact of the lawyer-client relationship. It should never be assumed that a client consents to the use of his name in marketing materials or even casual conversation. It may be public record, but every member of the public isn’t aware of everything spread on the docket. It doesn’t hurt remind office staff from time to time, either. This is especially true when a celebrity, even a minor one, has business with the office.

Some people ask how to respond to a pointed question involving confidential information without giving away the answer. No reason to lie to protect a secret, ever. Just say, with a wise look in your eye, “You know I can’t answer that question.” And mean it.

CLT

Category: Uncategorized

Rooting for the Underdog.

Posted by Cliff Tuttle| February 11, 2009 | © 2026

Posted by Cliff Tuttle

Kudos to “Stump”, the Sussex Spaniel who was voted best of show in the Winchester Dog Show and the oldest winner ever. Last year, when they chose the Beagle with endless charm, Uno, the Club found that it had a bona-fide celebrity on its hands. Now there are two.

The commercials they run during the show promoting the adoption of shelter dogs are some of the best ever broadcast — better than anything on the Super Bowl this year. “We know we are good dogs. We just want to go home.” Heart be still!

Category: Uncategorized

Stimulus or No Stimulus?

Posted by Cliff Tuttle| February 11, 2009 | © 2026

Posted by Cliff Tuttle

The Obama Administration came to Washington a few weeks ago with an imperative ringing in its ears: save the country by spending, not a minute to waste. According to the experts, unless the spending reaches a certain level, all will be for naught.

Wasn’t there a television show with this theme not too long ago? The contestants had to spend all the money in a suitcase by dawn or they lost — something like that.

Anyway, it seems that the debate is breaking down to what kind of spending creates a stimulus to the economy and what kind doesn’t. What to do? Here are some suggested ways to spend it, together with the answer to the question on everyone’s mind.

Q: Throw cash out of a helicopter over a busy downtown street. Stimulus or No Stimulus?

A: Stimulus. People will scoop it up and spend it.

Q: Give tax incentives for savings. Stimulus or No stimulus?

A: No stimulus. Too slow. Encourages hoarding.

Q: Complete the subway tunnel to the North Shore where they are building the casino. Stimulus or No Stimulus?

A: Stimulus — especially the casino part.

Q: Pay down the National Debt. Stimulus or No Stimulus?

A: No Stimulus. What a dumb question! That’s what Herbert Hoover would have done!

Q: Fund the National Endowment for the Arts. Stimulus or No Stimulus?

A: No Stimulus. An even dumber question! But I didn’t catch the answer why on Fox.

Q: Tear down buildings built by the Works Progress Administration during the New Deal. Stimulus or No Stimulus?

A: Stimulus. Those buildings are so sturdy they will require hand work — especially the marble.

Q: Invade a country in the Middle East, destabilize its political structure and economy and then subsidize it for years to the tune of trillions of dollars. Stimulus or No Stimulus.

A: Stimulus. No, wait. No Stimulus. We’ve already done that and it didn’t work.

Q: Buy shares in failing investment banks so that they will use the capital investment to lend money to failing automobile manufacturers. Stimulus or No Stimulus?

A: All right, wise guy! No more questions! Class dismissed!

CLT

Category: Uncategorized

Rule 237.3: Opening Default Judgment

Posted by Cliff Tuttle| February 10, 2009 | © 2026

Posted by Cliff Tuttle

You are served by the sheriff with a civil complaint. The second page informs you that you have twenty days to file a responsive pleading or default judgment may be entered against you. But you don’t. You forgot.

A notice from the Plaintiff’s attorney come in the mail. You have failed to file an answer in the alloted 20 days, it states, so you must file a responsive pleading within ten days or default judgment may be entered against you.

Ten days passes and you still haven’t filed anything. You’ve been busy.

Then, you receive notice of default judgment from the Prothonotary (or Department of Court Records in Allegheny County). Damn, too late!

Maybe not.

Get to a lawyer right away. He/she may be able to save you from your procrastinating ways by promptly filing a petition to open the judgment, together with that answer you didn’t get around to filing.

Under Pennsylvania Rule of Civil Procedure 237.3, a court is required to open judgment if you follow a few simple steps. (1) File the petition to open the judgment; (2) file a verified answer at the same time that (3) asserts a meritorious defense.

It must be an answer, not preliminary objections. If you want to file PO’s, you must satisfy the tests developed by case law. See the official notes and comments. As noted in a Lycoming County Common Pleas case, Grisewood v. Grindmaster, a Commonwealth Court case (Peters Twp. San. Auth. v. American Home Land Dev.) holding that preliminary objections could satisfy the requirements of Rule 237.3 was made obsolete by the revision of the Explanatory Comment in 2001.

Under rules developed under common law, it was also required to state a reasonable defense for the late-filing or non-filing. However, in the case of Attix v. Lehman, the Superior Court held that this was not required under Rule 237.3.

The Superior Court also held in Boatin v. Miller that failure to comply with unrelated local rules did not affect the operation of Rule 237.3, providing all of its requirements were met.

AS you may have noticed, Rule 237.3 can also applied to vacate judgments of non pros. However, as illustrated by the case of Kruis v. McKenna, there can be complications as other Rules come into play.

The foregoing is intended to be only a general introduction to the subject of opening judgments. If you are a non-lawyer and have recently (less than ten days recently) had a default judgment entered against you, do NOT attempt to prepare your own petition to open. Run, don’t walk, to a qualified lawyer. There isn’t a third chance.

CLT

Category: Uncategorized
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Welcome

CLIFF TUTTLE has been a Pennsylvania lawyer for over 45 years and (inter alia) is a real estate litigator and legal writer. The posts in this blog are intended to provide general information about legal topics of interest to lawyers and consumers with a Pittsburgh and Western Pennsylvania focus. However, this information does not constitute legal advice and there is no lawyer-client relationship created when you read this blog. You are encouraged to leave comments but be aware that posted comments can be read by others. If you wish to contact me in privacy, please use the Contact Form located immediately below this message. I will reply promptly and in strict confidence.

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