Subchapter A. RULES

Rule 1501. [Rescinded].

   Official Note

   The action in equity has been abolished. Equitable relief may be obtained through a civil action, Rule 1001 et seq. Rules 1506, 1521 and 1531 through 1535 are special rules governing equitable relief sought in a civil action.

   Official Note

   The court is ‘‘always open for the transaction of judicial business.’’ See Section 324 of the Judicial Code, 42 Pa.C.S. §  324

   Official Note

   See Rule 1006 governing venue in a civil action.

   Official Note

   For service of original process, see Rule 400 et seq.

 (a)  In an action to enforce a secondary right brought by one or more stockholders or members of a corporation or similar entity because the corporation or entity refuses or fails to enforce rights which could be asserted by it, the complaint shall set forth

   (1)  that each plaintiff is a stockholder or owner of an interest in the corporation or other entity,

   (2)  the efforts made to secure enforcement by the corporation or similar entity or the reason for not making any such efforts, and

   (3)  either

     (i)   that each plaintiff was a stockholder or owner of an interest in the corporation or other entity at the time of the transaction of which the plaintiff complains or that the plaintiff’s stock or interest devolved upon the plaintiff by operation of law from a person who was a stockholder or owner at that time, or

     (ii)   that there is a strong prima facie case in favor of the claim asserted on behalf of the corporation and that without the action serious injustice will result.

   Official Note

   See Section 1782(c) of the Associations Code, 15 Pa.C.S.A. §  1782, providing for security for costs in stockholder’s actions.

 (b)  A plaintiff who files a complaint containing an allegation pursuant to subdivision (a)(3)(ii) shall forthwith file a motion to maintain the action. If the plaintiff sustains the allegation, the court shall allow the action to continue.

 (c)  If it appears that the plaintiff does not fairly and adequately represent the interests of the shareholders or members similarly situated in enforcing the right of the corporation or association, an appropriate person shall be substituted as plaintiff or, if an appropriate person is not substituted, the action shall be dismissed as provided by subdivision (d).

 (d)  The action shall not be dismissed or compromised without the approval of the court, and notice of the proposed dismissal or compromise shall be given to shareholders or members in such manner as the court directs.

 (e)(1)  Section 1782(a) and (b) of the Associations Code, 15 Pa.C.S.A. §  1782(a) and (b), shall be suspended only insofar as it is inconsistent with the provisions of this rule.

   Official Note

   Section 1782(a) and (b) of the Associations Code relate to the bringing of a shareholder’s action.

   (2)  Section 1782(c) and (d) of the Associations Code, 15 Pa.C.S. §  1782(c) and (d), shall not be deemed suspended or affected by this rule.

   Official Note

   Section 1782(c) and (d) relate to security for costs in such actions and applicability of the statute to foreign corporations.

   Official Note

   See Rule 1020 governing the pleading of more than one cause of action.

   Official Note

   See Rule 1028 governing preliminary objections.

   Official Note

   See Rule 1031 governing counter-claim in a civil action.

   Official Note

   See Rule 1037 governiing judgment upon default or admission.

   Official Note

   See Rules 230 and 230.1 governing voluntary nonsuit and nonsuit at trial, respectively.

   Official Note

   See Rule 1038.3 governing advisory verdict by jury.

   Official Note

   See Rule 1038 for the conduct of a trial without a jury.

   Official Note

   See Rule 1038 for the decision in a trial without a jury.

   Official Note

   For post-trial relief following an equity trial, see Rule 227.1.

   Official Note

   For entry of the decree nisi upon praecipe as the final decree, see Rule 227.4.

   Official Note

   See Rule 1038 for the decision in a trial without a jury.

   Official Note

   See Rule 3021(a)(2) for the entry in the judgment index of final or interlocutory orders for equitable relief.

   See Rules 3022 and 3023 governing liens of judgments and verdicts for the payment of money, including the duration and effect of the liens.

   See Rule 3025 et seq. governing revival of judgment liens.

   Official Note

   See Rule of Appellate Procedure 1701(b) governing reconsideration of an order.

   Official Note

   See Rule 1033 governing amendment of pleadings.

 (a)  A court shall issue a preliminary or special injunction only after written notice and hearing unless it appears to the satisfaction of the court that immediate and irreparable injury will be sustained before notice can be given or a hearing held, in which case the court may issue a preliminary or special injunction without a hearing or without notice. In determining whether a preliminary or special injunction should be granted and whether notice or a hearing should be required, the court may act on the basis of the averments of the pleadings or petition and may consider affidavits of parties or third persons or any other proof which the court may require.

   Official Note

   Section 601(b) of the Clean Streams Law, Act of June 22, 1937, P. L. 1987, 35 P. S. § §  691.601(b), relieves the Attorney General, the district attorney or the solicitor of a municipality from the requirement of bond in injunction proceedings.

   Section 7 of the Act of April 11, 1929, P. L. 488, No. 205, 3 P. S. §  297, relating to certified, inspected or registered seeds, similarly provides that the Attorney General shall not be required to give bond in injunction proceedings.

 (b)  Except when the plaintiff is the Commonwealth of Pennsylvania, a political subdivision or a department, board, commission, instrumentality or officer of the Commonwealth or of a political subdivision, a preliminary or special injunction shall be granted only if

   (1)  the plaintiff files a bond in an amount fixed and with security approved by the court, naming the Commonwealth as obligee, conditioned that if the injunction is dissolved because improperly granted or for failure to hold a hearing, the plaintiff shall pay to any person injured all damages sustained by reason of granting the injunction and all legally taxable costs and fees, or

   (2)  the plaintiff deposits with the prothonotary legal tender of the United States in an amount fixed by the court to be held by the prothonotary upon the same condition as provided for the injunction bond.

   Official Note

   See Rule 1549(4), (11), (13), (17), (20), (21) and Rule 1550(12), (13), (20), (21), (22), (25), (26), (27), (29), (30) and (32) for reference to Acts of Assembly containing provisions relieving the Commonwealth, political subdivisions, and their agencies from the requirement of bond in injunction proceedings.

 (c)  Any party may move at any time to dissolve an injunction.

 (d)  An injunction granted without notice to the defendant shall be deemed dissolved unless a hearing on the continuance of the injunction is held within five days after the granting of the injunction or within such other time as the parties may agree or as the court upon cause shown shall direct.

   Official Note

   See subdivision (f) of this rule for special provisions relating to injunction restraining freedom of expression.

   If an injunction has been issued without notice, it is optional with the defendant to waive a hearing on continuance of the injunction under this subdivision and proceed directly to a final hearing.

 (e)  After a preliminary hearing, the court shall make an order dissolving, continuing or modifying the injunction.

 (f)(1)  When a preliminary or special injunction involving freedom of expression is issued, either without notice or after notice and hearing, the court shall hold a final hearing within three days after demand by the defendant. A final order shall be filed in the office of the prothonotary within twenty-four hours after the close of the hearing. If the final hearing is not held within the three-day period, or if the final order is not filed within twenty-four hours after the close of the hearing, the injunction shall be deemed dissolved.

   Official Note

   The three-day period is the maximum time. In particular cases a shorter period may be required. The court is ‘‘always open for the transaction of judicial business.’’ See Section 324 of the Judicial Code, 42 Pa.C.S. §  324.

   (2)  When the defendant demands such a final hearing, no further pleadings shall be required and Rule 1038(b) and (c) relating to decision in a trial without and Rules 227.1 to 227.3 relating to post-trial relief shall not apply.

   (3)  The trial judge shall file a written memorandum supporting the final order within five days after it is filed.

 (a)  In an action to perpetuate testimony the complaint shall set forth

   (1)  the names and addresses of all prospective parties to the contemplated action, but if the identity of the heirs or assigns of a named former owner or party in interest is unknown they may be described generally;

   (2)  the nature of the contemplated action, the plaintiff’s interest therein and the need for perpetuating the testimony of the person to be examined;

   (3)  the name and address of the person whose testimony is to be perpetuated and the substance of the testimony which plaintiff expects to elicit from each.

 (b)  In an action to perpetuate testimony, the testimony may be taken before the court or by depositions. The procedure for the taking of the testimony by depositions shall conform as nearly as practicable to the proceedings under the rules on depositions and discovery. The final order shall direct whether or not the testimony or a part thereof shall be perpetuated.

 (c)  Testimony which has been perpetuated may be used at a trial or hearing in accordance with the provisions applicable to depositions under Rule 4020. The testimony may be used by or against a person succeeding to the interest of the party to the action for the perpetuation of testimony to the same extent as though the successor had been a party and had been present at the taking of the testimony. The testimony, if otherwise admissible, may be used in any other county of the Commonwealth.

 (a)  A temporary receiver may be appointed without notice if required by the exigencies of the case. Except as otherwise provided by an Act of Assembly, such appointment may not be made unless

   (1)  the plaintiff files a bond in an amount fixed and with security approved by the court, naming the Commonwealth as obligee, conditioned that if the appointment is vacated because improperly made the plaintiff shall pay to any person injured all damages sustained by reason of such appointment and all legally taxable costs and fees, or

   (2)  the plaintiff deposits with the prothonotary legal tender of the United States in an amount fixed by the court to be held by the prothonotary upon the same condition as provided for the bond. A hearing on the continuation or revocation of the appointment shall be held promptly. Notice of the hearing shall be given by the temporary receiver to all persons interested, including creditors and stockholders, if any, whose addresses are known or can be ascertained.

 (b)  No officer of a corporation or member of a partnership shall be appointed sole temporary receiver of the property of the corporation or partnership but, after hearing, an officer or member may be appointed sole permanent receiver.

 (c)  The court may refuse to appoint a receiver for property and may permit the person in possession to retain it if the person gives such security as the court shall direct. The court may remove a receiver and restore the property to the person from whom it was taken if the person gives such security as may be required.

 (d)  Except as otherwise provided by an Act of Assembly, a receiver, whether temporary or permanent, must give such security for the faithful performance of the receiver’s duty as the court shall direct. A receiver shall not act until he or she has given the security required.

   Official Note

   See Rule 1549(16) for reference to Act of Assembly relieving the Secretary of Banking as statutory receiver from requirement of bond. The same practice is followed in connection with the appointment of the Insurance Commissioner as receiver.

 (e)  Except in the case of a public utility, an order authorizing a receiver to operate a business shall be limited to a fixed period, which may be extended from time to time upon cause shown after notice to all parties in interest.

 (f)  Except as otherwise provided by an Act of Assembly, the court upon appointing a permanent receiver shall also appoint two appraisers who shall promptly inventory and appraise all assets of the defendant. The compensation of the appraisers shall be determined by the court.

   Official Note

   For Acts of Assembly containing provisions as to receivers, appraisers and inventories, see sections 12 and 15 of the Act of June 4, 1901, P. L. 404, No. 231, 39 P. S. § §  42, 48 (insolvency proceedings), section 501 et seq. of the Act of May 17, 1921, P. L. 789, as amended, 40 P. S] §  221.1 et seq. (insurance department statutory receiverships) and sections 605, 606 and 701 of the Act of May 15, 1933, P. L. 565, 71 P. S. § §  733-605, 733-606, 733-701 (banking department statutory receiverships).

 (g)  Every order appointing a permanent receiver shall fix the time within which the receiver shall file a report setting forth the property of the debtor, the interests in and claims against it, its income-producing capacity and recommendations as to the best method of realizing its value for the benefit of those entitled.

 (h)  These rules shall not be deemed to impose upon the Secretary of Banking, the Insurance Commissioner or other public officer acting as statutory receiver any duties or restrictions which are in conflict with the Acts of Assembly authorizing their appointment and prescribing their rights and duties.

 (a)  Except as otherwise provided by an Act of Assembly, a receiver, assignee or other fiduciary filing an account shall give notice of the intention to apply for confirmation thereof on the date fixed by the court by local rule or special order. The notice shall also set forth that the account may be confirmed and distribution ordered unless exceptions are filed with the prothonotary before that date.

 (b)  Notice shall be given by personal service, or by mail or publication, in such manner as the court by local rule or special order shall direct.

 (c)  The court at any time may order a partial distribution of money or property in settlement of claims and may require the filing of refunding bonds by the claimants.

   Official Note

   Adopted January 4, 1952, effective July 1, 1952. For special statutory provisions relating to accounting, see the Act of May 15, 1933, P. L. 565, 71 P. S. §  733-1 et seq., (the Department of Banking Code) and the Act of June 4, 1901, P. L. 404, No. 231, 39 P. S. §  1 et seq., (insolvency proceedings).

 The court, upon petition filed by any party, and after notice and hearing, may upon cause shown

   (1)  increase or decrease any security which has been required;

   (2)  strike off a bond improperly filed; or

   (3)  permit the substitution of security and enter an exoneration of security already given.

   Official Note

 The rules governing a civil action shall not be deemed to suspend or affect the following Acts of Assembly:

   (1)  Sections 1 and 2 of the Act approved May 4, 1869, P. L. 1251, 68 P. S. § §  115, 116.

   Official Note

   These sections make unlawful the cutting, removing or selling of timber by the owner of an undivided interest in land, without the witten consent of all interests and authorize proceedings for recovery of timber or damages.

   (1.1)  Sections 12 and 15 of the Act approved June 4, 1901, P. L. 404, No. 231, 39 P. S. § §  42, 48.

   Official Note

   These sections regulate receivership proceedings under the Insolvency Act of 1901.

   (2)  Section 404 of the Act approved May 17, 1921, P. L. 789, No. 285, 40 P. S. §  184.

   Official Note

   This section provides that process shall be served on the State Treasurer who shall appear and answer on behalf of the Commonwealth in actions in equity against the Commonwealth brought by insurance companies, associations or exchanges to enforce, administer or terminate deposit trusts.

   (3)  Section 501 et seq. of the Act approved May 17, 1921, P. L. 789, added by the Act of December 14, 1977, P. L. 280, No. 92, §  2, 40 P. S. §  221.1 et seq.

   Official Note

   These sections regulate receiverships of insurance companies.

   (4)  Section 3 of the Act approved June 23, 1931, P. L. 1178, No. 319, 68 P. S. §  469.

   Official Note

   This section relates to actions in equity brought in the name of the Commonwealth to enjoin the use of buildings for immoral purposes.

   (5)  Sections 502 and 503 of the Act approved May 15, 1933, P. L. 565, No. 111, as amended, 71 P. S. § §  733-502, 733-503.

   Official Note

   These sections provide for the enforcement by a court of orders of the Department of Banking and for quo warranto and injunction proceedings against corporations, institutions and persons subject to the supervision of the Department.

   (6)  Sections 605, 606, 701 of the Act approved May 15, 1933, P. L. 565, No. 111, as amended, 71 P. S. § §  733-605, 733-606, 733-701.

   Official Note

   These sections regulate bank receiverships.

   (7)  Section 9(d) of the Act approved June 1, 1937, P. L. 1168, No. 294, as amended by Section 1 of the Act approved June 9, 1939, P. L. 293, No. 162, 43 P. S. §  211.9(d).

   Official Note

   This section relates to enforcement and review of orders of the Pennsylvania Labor Relations Board.

   (8)  Sections 4, 6 to 14, inclusive, 16, 17, of the Act approved June 2, 1937, P. L. 1198, No. 308, 43 P. S. § §  206d, 206f to 206n, inclusive, 206p, 206q.

   Official Note

   These sections relate to injunctions in labor disputes, prescribe procedure therein and prohibit injunctions without hearing.

   (9)  Sections 601 to 602 of the Act approved June 22, 1937, P. L. 1987, No. 394, as amended, 35 P. S. § §  691.601, 691.602.

   Official Note

   Section 601 of the Clean Streams Law authorizes suits to abate nuisances and to restrain violations of and compel compliance with the Law. Section 602 provides penalties for violation of the Law.

   (10)  Sections 1984 to 1986 of the Associations Code, 15 Pa.C.S. § §  1984 to 1986, insofar as they relate to the appointment of receivers in corporate dissolutions.

   (11)  Section 502 of the Public Utility Code, 66 Pa.C.S. §  502.

   Official Note

   This section provides for injunction actions to enforce orders of the Public Utility Commission.

 The following Acts of Assembly are suspended insofar as they apply to the practice and procedure in a civil action to the extent hereinafter set forth, in accordance with Article V, Section 10(c) of the Constitution of 1968:

   (1)  Section 7 of the Act of April 11, 1929, P. L. 488, No. 205, 3 P. S. §  297, insofar as it relates to venue.

   Official Note

   This section relates to actions to enjoin the unlawful use of the words ‘‘certified, inspected or registered seeds.’’

   (2)  Section 121 of the Act of July 17, 1961, P. L. 659, 52 P. S. §  701-121, insofar as it relates to venue.

   Official Note

   This section relates to actions by the Commonwealth to enjoin the illegal operation of mines.

   (3)  Section 1201 of the Act of November 10, 1965, P. L. 721, No. 346, 52 P. S. §  70-1201, insofar as it relates to venue.

   Official Note

   This section relates to injunctions against the unlawful operation of mines.

   The provisions of this Rule 1550 amended June 3, 1994, effective July 1, 1994, 24 Pa.B. 3010; amended December 16, 2003, effective July 1, 2004, 34 Pa.B. 9. Immediately preceding text appears at serial page (255271) .