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municipalauthorities.org | 41 C. Litigation In addition to litigation instituted by other entities such as the case in Sheriff Sales, Tax Sales or other types of judicial sales, authorities are also empowered to pursue debt collection via court proceedings. One type of legal proceeding is a magistrate action filed for theft of services. In Pennsylvania, the magisterial jurisdictional limit is $12,000.00. Once the Complaint is filed and service effectuated, a hearing will be held. In certain instances, an authority can use this as an opportunity to not only address the current delinquencies, but as a forum to discuss resolution of outstanding liens through a comprehensive payment plan. The Municipal Claims and Tax Liens Act also permits an action through the filing of a Writ of Scire Facias. When initiated by the municipal authority, this type of action will require the property owner to file an Affidavit of Defense to an authority’s claim for monies due it. The property owner’s response will determine how the remainder of the litigation proceeds, whether to judgment or hearing. Prior to expending fees and costs associated with pursuing any type of litigation collection effort, an authority should consider several factors. First, whether service is available. If sewage bills and correspondence have been returned, it is unlikely that service will be easily attainable without further investigation. Second, consider the amount at issue as compared to the time and expense associated with the preparation and filing of pleadings and court appearances. Finally, it is also helpful to review the tax status of the parcel as well as the physical condition of the property to evaluate whether there will be funds available to pay any judgments. Lastly, if successful in a litigation proceeding, the authority will be granted an award and ultimately a judgment in its favor. If the property owner still refuses to pay, the authority’s recourse will be to execute on the judgment which may be difficult to do if there is no realistic amount of equity in the real property. D. Disconnection of Services While some municipal authorities consider disconnection of service an option, it is not recommended due to it being fraught with legal peril. III. Conclusion Authorities have various options to consider in addressing delinquent accounts and collections. Each process has a distinct set of advantages and disadvantages. Given the legal implications of each, it is important to closely consider your options and for the authority’s solicitor to be involved throughout the collection process. Additionally, policies that are well thought-out, transparent and clear are more easily implemented and carried out fairly and equitably on a regular basis. Employing best practices will result in “collecting correctly” and lead to more successful and efficient results with your authority’s collections. S Romel L. Nicholas, Esquire is a Partner in the Law Firm of Gaitens, Tucceri & Nicholas, P.C. of Pittsburgh, Pennsylvania. He is a frequent article contributor to this magazine and lectures on various topics at PMAA conventions. His areas of legal concentration are municipal law and civil litigation at the federal and state levels. Christine M. Seymour, Esquire is a sole practitioner in the South Hills of Pittsburgh, Pennsylvania specializing in the areas of municipal authority law and litigation. She also served as an adjunct professor at several universities and is a former Administrative Law Judge. She is a frequent contributor to this magazine and speaker at PMAA conferences. IDENTIFY DEVELOP PROMOTE We LEARN from each other.... 2025 MENTORSHIP PROGRAM 717-737-7655 CONTACT US TO PARTICIPATE IN 2025: municipalauthorities.org glantz@municipalauthorities.org FUTURE LEADERS COMMITTEE One-to-One Interactions with a new Pairing each Quarter Authority and Associate Member Professional Participants Excellent Participant Feedback after 2024 Program: “I truly believe in the program and the need to interact with industry professionals and develop new leaders.” “I had a great conversation with my mentor. I enjoyed sharing ideas and getting her insight on my questions.” Romel and Christine will be presenting the session, Litigation Lightening Rods - How to Avoid Legal Lightening Bolts on Tuesday morning at PMAA’s annual conference in September.