Commercial Lease Attorney Fees Notice
Adamo Peters, LLC v. Citywide Community Counseling Serv., Inc., PICS Case No. 17-1081 (C.P. Philadelphia Jun. 20, 2017) Patrick, J. (18 pages).
Plaintiff was entitled to recover its attorney fees where it specifically sought attorney fees in its amended complaint and in the pretrial settlement process. The parties' lease agreement also contained an explicit provision for the recovery of attorney fees in the event of a default.
The parties entered into a five year commercial lease in 2012. Defendant, the tenant under the lease, later defaulted. Plaintiff filed a complaint in confession of judgment. Defendant petitioned to open the judgment, which the court granted. Plaintiff subsequently filed an amended complaint, seeking damages against defendant for back rent, maintenance charges, insurance and tax payments, which were all required under the terms of the lease. Plaintiff also sought an award of attorney fees.
At a bench trial, the court found in favor of plaintiff. Defendant appealed, but failed to timely file a 1925(b) statement or errors.
The court found that defendant waived its right to appeal by failing to timely file its 1925(b) statement. However, the court went on to address the merits of defendant's claim for the sake of completeness.
Defendant argued the court erred in allowing plaintiff to present evidence in support of its claim for attorney fees. Plaintiff submitted an exhibit entitled "schedule of account" which itemized its attorney fees. According to defendant, the court should have rejected this exhibit because plaintiff did not identify it in the pre-trial settlement memorandum or exchange it with defense counsel in accordance with the case management order. Additionally, defendant argued plaintiff failed to make a separate count for attorney fees in its complaint. Defendant claimed to be unfairly prejudiced by admission of this surprise evidence.
The court found defendant's claim to be meritless. Plaintiff's amended complaint contained a request for attorney fees. The rules did not require plaintiff to make a separate count for attorney fees. Plaintiff also requested attorney fees in its pre-trial settlement memorandum under its discussion of damages. Defendant focused on the fact that plaintiff did not provide its "schedule of account," but the court held there was no surprise here. Defendant had notice plaintiff was seeking its attorney fees even though the "schedule of account" was not submitted until trial. The "schedule of account" would have been incomplete at any time prior to trial, because attorney fees accrued throughout the litigation process.
The parties' rental agreement also contained an explicit provision regarding attorney fees. Defendant defaulted on the lease, and since legal action was required, defendant was obligated to pay attorney fees pursuant to the parties' agreement. The court did not abuse its discretion by admitting plaintiff's "schedule of account" regarding attorney fees.