IN THE COURT OF COMMON PLEAS OF PHILADELPHIA COUNTY

FIRST JUDICIAL DISTRICT OF PENNSYLVANIA

TRIAL DIVISION - CIVIL
THE CITY OF PHILADELPHIA and

Filed and Attested by

PROTHONOTARY
14 MAY 2015 09:44 am
E. HAURIN

THE SCHOOL DISTRICT OF PHILADELPHIA

Petitioners,
v.
UNIVERSITY REALTY
618A STREET RD
SOUTHAMPTON, PA 18966

CP No.
TLD No. 01510246
OPA No. 881040604

Respondent(s).
RULE TO SHOW CAUSE
ORDER
AND NOW, this ____ day of __________________, 2015, upon consideration of the City of
Philadelphias and the School District of Philadelphias Petition to Appoint Sequestrator pursuant to 53 P.S.
7275 for 03104 SPRING GARDEN ML(the "Property"), it is ORDERED as follows:
1. A Rule is issued upon the respondent to show cause why the petitioners are not entitled to the
relief requested in the Petition;
2. Within ten (10) days of the date of entry of this Order, petitioners shall serve a copy of this
Order and the Petition on the respondent;
3. The respondent shall serve and file its Answer to the Petition within twenty (20) days of the
date of service of the Petition and Order, or a sequestrator may be appointed for the Property by default; and
4. The parties shall appear for a conference on ________________, 2015, at _____ p.m. in Room
531, City Hall, at which time a date for a hearing on the Petition may be set by the court.
5. Failure to appear may be punishable as contempt.

BY THE COURT,

______________________________
HON. PATRICIA A. McINERNEY

Batch No. 2014

Case ID: 150501386

Control No.: 15051570

IN THE COURT OF COMMON PLEAS OF PHILADELPHIA COUNTY

FIRST JUDICIAL DISTRICT OF PENNSYLVANIA
TRIAL DIVISION - CIVIL
THE CITY OF PHILADELPHIA and
THE SCHOOL DISTRICT OF PHILADELPHIA
Petitioners,
v.
UNIVERSITY REALTY
618A STREET RD
SOUTHAMPTON, PA 18966

CP No.
TLD No. 01510246
OPA No. 881040604

Respondents(s).
ORDER APPOINTING
SEQUESTRATOR

AND NOW, this _____ day of ____________, 2015, upon consideration of the City of Philadelphias and
the School District of Philadelphias Petition to Appoint Sequestrator, the Answer thereto, and all other matters of
record, and after a hearing held on _________, 2015, the court makes the following findings:
1.

Respondent is the owner of certain real property known as 03104 SPRING GARDEN ML, Philadelphia,

PA (the 'Property');
2.

Respondent has failed to pay real estate taxes on the Property in the amount of $49,920.76 for which

one or more liens have been entered in favor of petitioners, and for which interest and penalties will continue to
accrue; and
3.

The Property generates rents, issues and profits, or proceeds thereof (collectively the "Rents").
Based upon these findings, it is ORDERED that the Petition is GRANTED as follows:

1.

Gary Seitz, Esquire, GELLERT SCALI BUSENKELL & BROWN, LLC, is hereby appointed

Sequestrator for the Property (the Sequestrator), with all the powers and duties provided in 53 P.S. 7275 (the
Sequestration Statute), which the Sequestrator shall perform faithfully.
2.

Prior to the collection of any Rents, the Sequestrator shall notify every tenant and lessee of the Property

of the Sequestrators appointment and the extent of the Sequestrators authority under the Sequestration Statute.

BY THE COURT,

______________________________
HON. PATRICIA A. McINERNEY

Batch No. 2014

Case ID: 150501386

Control No.: 15051570

CITY OF PHILADELPHIA
BY: ANNE E. WHITCOMBE, Senior Attorney
Attorney Identification Number: 59763
Revenue Department
Municipal Service Building
1401 John F. Kennedy Blvd., Suite 530
Philadelphia, PA 19102-1595
(215) 686-0520

Attorney for Petitioners

THE CITY OF PHILADELPHIA and

THE SCHOOL DISTRICT OF PHILADELPHIA
Petitioners,
v.

UNIVERSITY REALTY
618A STREET RD
SOUTHAMPTON, PA 18966

CP No.
TLD No. 01510246
OPA No. 881040604

Respondents(s).

PETITION FOR THE APPOINTMENT OF A SEQUESTRATOR

UNDER 53 P.S. 7275
Petitioners, by their counsel, respectfully petition this court for the Appointment of a Sequestrator in
this matter, as authorized under 53 P.S. 7275, and that said Sequestrator have the powers and duties set forth
in this Petition, including, but not limited to, all powers and duties in accordance within the provisions of 53
P.S. 7275, and in support of this Petition, avers as follows:
1.

The Office for the Recorder of Deeds in and for the County of Philadelphia lists

Respondent (s) as the real and registered owner(s) of certain real property and improvements located at
03104 SPRING GARDEN ML ("Real Estate").
2.

Respondent(s) is/are indebted to Petitioners for the payment of delinquent real estate taxes

with respect to the Real Estate in the total amount of $49,920.76 for tax years 2014 through 2014.
3.

Petitioners have made demand on Respondent(s) to satisfy said real estate tax liabilities.

Case ID: 150501386

Control No.: 15051570

4.
Petitioners have initiated routine dunning with respect to the delinquent balances in an
effort to collect from Respondent.
5.
The Real Estate produces or may produce certain rents, issues and profits or proceeds
thereof (collectively the Rents).
6.

A lien in favor of the Petitioners has been entered.

7.

The Premises is not essential to the business of a quasi-public corporation.

8.
Under 53 P.S. 7275, a Sequestrator (the Sequestrator) appointed by this Court has the
authority to sequester the Rents of the Real Property.
WHEREFORE, Petitioners respectfully request that this Honorable Court grant the Petition for the
Appointment of a Sequestrator under 53 P.S. 7275 and that a Sequestrator (the Sequestrator) be appointed
as designated by this Court or the Petitioners pursuant to the Order accompanying this Petition, and any
additional relief this Court deems necessary and just.

Respectfully submitted,
CITY OF PHILADELPHIA and
SCHOOL DISTRICT OF PHILADELPHIA

/s/
ANNE E. WHITCOMBE
Senior Attorney

Batch No. 2014

Case ID: 150501386

Control No.: 15051570

CITY OF PHILADELPHIA
BY: ANNE E. WHITCOMBE, Senior Attorney
Attorney Identification Number: 59763
Revenue Department
Municipal Service Building
1401 John F. Kennedy Blvd., Suite 530
Philadelphia, PA 19102-1595
(215) 686-0520

Attorney for Petitioners

THE CITY OF PHILADELPHIA and

THE SCHOOL DISTRICT OF PHILADELPHIA
Petitioners,
v.

UNIVERSITY REALTY
618A STREET RD
SOUTHAMPTON, PA 18966

CP No.
TLD No. 01510246
OPA No. 881040604

Respondent(s).

MEMORANDUM OF LAW IN SUPPORT OF PETITION

FOR THE APPOINTMENT OF A
SEQUESTRATOR UNDER 53 P.S. 7275
I.

Introduction

As this Court is well aware, tax revenue is essential to the recovery of the City of Philadelphias
economy, and, in particular, to the future well-being of its School District. The public outcry regarding the
collection of outstanding taxes is here. Accordingly, the City now turns to the use of sequestration as an
infrequently used tax enforcement tool to assist in replenishing the Citys coffers. Sequestration, which is
similar to a sequestratorship, authorizes a Sequestrator to collect rental income generated by the subject real
property for the purpose of satisfying unpaid real estate taxes. Because the Sequestration process does not
involve foreclosing the actual real property but focuses instead on the rental income stream generated by a
given property, the due process requirements are much less. Cedarbrook Realty, Inc. v. Nahill, 484 Pa. 441,
399 A.2d 374 (1979). In short, the taxpayer is afforded the right to retain title to the real estate. Thus, the
sequestration program actually lessens a burden on the Court system of City tax sales.
Over at least the past year the City has continued to seek collection of the subject taxpayers real estate
tax delinquency without success. The City has made one final demand on Respondent(s) to satisfy the
foregoing real estate tax liabilities to no avail. Accordingly, the City Petitioner, by its counsel, respectfully
petitions this Court pursuant to the authority of 53 P.S. 7275 for the Appointment of a Sequestrator.

Case ID: 150501386

Control No.: 15051570

II.

Factual Background
The Office for the Record of Deeds in and for the County of Philadelphia lists Respondent(s) as the real
and registered owner/owners of the premises (the Real Estate) set forth with further description in the
Petition filed together with this Memorandum of Law. Respondent(s) is/are indebted to Petitioners for the
payment of delinquent real estate taxes with respect to the Real Estate and owes/owe the total amount set
forth with further detail in Petition. Petitioners have made demand on Respondent(s) to satisfy the foregoing
liabilities. The Real Estate produces or may produce certain rents, issues and proceeds thereof (collectively
the Rents). Liens in favor of the Petitioners have been entered and a writ of execution has been issued.
Finally, the Real Estate is not essential to the business of a quasi-public corporation.
III.

Legal Authority
The Municipal Claims and Tax Liens Act of May 16, 1923, as amended, 53 P.S. 7101 through 7505
(the Act), governs tax enforcement procedures applicable to these proceedings. The Act specifically
provides for the appointment of a Sequestrator (Sequestrator) of the Rents, Issues and Profits upon
petition to this Court. 53 P.S. 7275. The only exception to this provision is in cases where the Real Estate
is essential to the business of a quasi-public corporation. 53 P.S. 7275. Moreover, the Pennsylvania
Supreme Court has held that a municipality acts within its constitutional limits in sequestering the Rents,
Issues and Profits of a delinquent taxpayer. Cedarbrook Realty, Inc. v. Nahill, 484 Pa. 441, 399 A.2d 374
(1979), affg, 35 Pa.Cmwlth. 352, 387 A.2d 127 (1978)(citing Commissioner of Internal Revenue v.
Shapiro, 424 U.S. 614 (1976); Enochs v. Williams Packing Co., 370 U.S. 1 (1962); Bull v. United States,
295 U.S. 247 (1935); Phillips v. Commissioner of Internal Revenue, 283 U.S. 589 (1931)).
The Act provides that all taxes imposed are a first lien on the real estate. 53 P.S. 7106(b). A
municipal claim is further defined as, inter alia, taxes assessed against real property. 53 P.S. 7106(a).
Finally, any municipal claim, including interest, penalty and costs, imposed by a city of the first class, shall
be a judgment against said property when lien has been docketed by the prothonotary. 53 P.S. 7106(b).
While this Court may appoint a Sequestrator on a scire facias, a writ of execution may issue directly without
a scire facias. 53 P.S. 7106(c).

Case ID: 150501386

Control No.: 15051570

Of further significance is that section 7275 is a statutory remedy available for the appointment of a
receiver. Statutory remedies are preferred over those found at common law. 1 Pa.C.S. 1504. Pechner,
Dorfman, Wolffe, Rounick and Cabot v. Pennsylvania Ins. Dept., 499 Pa. 139, 452 A.2d 230 (1982);
Chartiers Valley School Dist. v. Virginia Mansions Apartment, 340 Pa.Super. 285, 489 A.2d 1381 (1985).
Moreover, the interpretation of a statute should be according to the plain meaning of its language. City of
Farrell v. FRO, 538 Pa. 75, ____, 645 A.2d 1294, 1297 (1994).
These standards are significantly less than those standards a court must look for in the appointment of
a receiver in equity. As an equitable remedy, a court must appoint a receiver upon a showing of waste,
dissipation, fraud, or mismanagement. Hankin v. Hankin, 507 Pa. 603, 608, 493 A.2d 675, 679 (1985).
Under 7275 Petitioners need not show any of the foregoing for this Court to appoint a sequestrator.
In short, Pennsylvania statutory law clearly provides for the appointment of a Sequestrator of
Respondents/Respondents Rents.
IV. Legal Argument
Respondent(s) is/are listed as the real and registered owner(s) of the Real Estate, which is not essential
to the business of a quasi-public corporation. 53 P.S. 7275. Respondent(s) has/have failed to pay
its/their real estate taxes. Rents are obtainable from said Real Estate. A lien in favor of Petitioners has
been entered, 53 P.S. 7106(b), and a writ of execution has been issued. 53 P.S. 7106(c). Statutory
law authorizes the appointment of a sequestrator to sequester the Rents. 53 P.S. 7275.
V. Conclusion
Statutory authority clearly exists for the appointment of a Sequestrator under 53 P.S. 7275 where
Rents are obtainable from the Real Estate. Accordingly, Petitioner respectfully requests this Honorable
Court to appoint a Sequestrator of the Rents of the Real Estate. See also Cedarbrook Realty, Inc. v. Nahill,
484 Pa. 441, 399 A.2d 374 (1979), affg, 35 Pa.Cmwlth. 352, 387 A.2d 127 (1978)(citing Commissioner of
Internal Revenue v. Shapiro, 424 U.S. 614 (1976); Enochs v. Williams Packing Co., 370 U.S. 1 (1962);
Bull v. United States, 295 U.S. 247 (1935); Phillips v. Commissioner of Internal Revenue, 283 U.S. 589

Respectfully submitted,
CITY OF PHILADELPHIA and
SCHOOL DISTRICT OF PHILADELPHIA

/s/
ANNE E. WHITCOMBE
Senior Attorney
Batch No. 2014

Case ID: 150501386

Control No.: 15051570

CITY OF PHILADELPHIA
BY: ANNE E. WHITCOMBE, Senior Attorney

Attorney for Petitioners

Attorney Identification Number: 59763

THE CITY OF PHILADELPHIA and
THE SCHOOL DISTRICT OF PHILADELPHIA
Petitioners,
v.
UNIVERSITY REALTY
618A STREET RD
SOUTHAMPTON, PA 18966

CP No.
TLD No. 01510246
OPA No: 881040604

Respondents(s).
VERIFICATION
I certify that the statements made herein are true and correct to the best of my knowledge,
information, and belief. I understand that false statements made herein are subject to the penalties of 18
Pa.C.S. 4904, relating to unsworn falsification to authorities.

Respectfully submitted,
CITY OF PHILADELPHIA and
SCHOOL DISTRICT OF PHILADELPHIA
/s/
________________________________
ANNE E. WHITCOMBE
SENIOR ATTORNEY

Batch No. 2014

Case ID: 150501386

Control No.: 15051570