Philadelphia v. Philadelphia Parking Authority

• Decision Date: 31 May 2002
• Citation: 568 Pa. 430,798 A.2d 161
• Parties: The CITY OF PHILADELPHIA, Appellant, v. The PHILADELPHIA PARKING AUTHORITY, Joseph T. Ashdale, Michael A. Cibik, Catherine Marshall, Alfred W. Taubenberger, Russell R. Wagner, Karen M. Wrigley, Appellees.
• Court: Pennsylvania Supreme Court

798 A.2d 161

568 Pa. 430

The CITY OF PHILADELPHIA, Appellant, v. The PHILADELPHIA PARKING AUTHORITY, Joseph T. Ashdale, Michael A. Cibik, Catherine Marshall, Alfred W. Taubenberger, Russell R. Wagner, Karen M. Wrigley, Appellees.

Supreme Court of Pennsylvania.

Submitted September 5, 2001.

Decided May 31, 2002.

Patrick Schaffner Cawley, Susan Jane Forney, Harrisburg, for amicus curiae Office of Attorney General.

Kenneth Israel Trujillo, Shelley Roxanne Smith, Christopher Roulhac Booth, Suzanne Ilene Schiller, Michael S. Blume, Wendy M. Staton, William R. Thompson, Christopher Grant Barnes, Paul R. Rosen for City of Philadelphia.

Jason Peter Gosselin, Alfred W. Putnam, David P. Bruton, Philadelphia, for Catherine Marshall.

Alfred W. Putnam, Philadelphia, for Joseph T. Ashdale.

G. Alexander Bochetto, Philadelphia, for Michael A. Cibik. Gregg R. Melinson, for Alfred W. Taubenberger.

David P. Bruton, Philadelphia, for Russell R. Wagner.

Alfred W. Putnam, David P. Bruton, Philadelphia, for Karen M. Wrigley.

ZAPPALA, C.J., and CAPPY, CASTILLE, NIGRO, NEWMAN, SAYLOR and EAKIN, JJ.

ORDER

PER CURIAM:

AND NOW, this 31st day of May, 2002, the order of the Commonwealth Court is VACATED and the matter is REMANDED to the Commonwealth Court for disposition on the merits. In light of our disposition of the jurisdictional issue, we hereby lift the stay of further implementation of Act 22. Appellant's Petition for Contempt is DENIED as moot.

Justice CASTILLE files a Concurring

Statement which is joined by Justice NIGRO.

Justice SAYLOR files a Concurring Statement.

Chief Justice ZAPPALA files a Dissenting

Statement which is joined by Justice CAPPY.

Justice CASTILLE, concurring.

I write to explain my reasons for joining the Court's per curiam order vacating the order of the Commonwealth Court and remanding this matter to that court for disposition on the merits. I join section I of Mr. Justice Saylor's Concurring Statement concluding that, in light of Act 22's transfer of control of the governing board (Board) of the Philadelphia Parking Authority (PPA) from the Mayor of Philadelphia to the Governor, PPA constitutes part of the Commonwealth government for purposes of the Commonwealth Court's original jurisdiction.¹ Unlike Justice Saylor, however, I also believe that the Governor is an indispensable party to this action for declaratory and injunctive relief. My conclusion in this regard provides an additional, independent ground for holding that exclusive original jurisdiction rests in the Commonwealth Court. I write separately to address this independent basis for original jurisdiction in the Commonwealth Court.

Appellant argues that the Governor is not indispensable to the case because his only interest in the matter is his generic concern that Act 22 be declared lawful and this general interest alone does not render him indispensable. Moreover, appellant argues that whatever interest the Governor may have in the case is not essential to a decision on the merits because appellant has not requested any specific relief against the Governor nor has appellant accused the Governor of any wrongdoing. Finally, appellant contends that the Governor does not need to be joined because the defendants named by appellant will adequately represent and protect his interests.

Appellees counter that, notwithstanding that appellant has not requested relief against the Governor specifically, appellant's lawsuit seeks to invalidate the Governor's authority under Act 22 to make new appointments to the Board, to remove Board members for cause, and to appoint successors to the PPA's governing body. The Governor's interests, appellees contend, are thus "inextricably intertwined" with the lawsuit and will necessarily be affected if relief is granted to appellant. In addition, appellees stress that appellant's complaint seeks declaratory relief and that such an action will not lie unless all the parties having an interest in the issues are joined.

As Justice Saylor correctly notes, "the basic inquiry in determining whether a party is indispensable concerns whether justice can be done in the absence of a third party...." CRY, Inc. v. Mill Service, Inc., 536 Pa. 462, 640 A.2d 372, 375 (1994). The determination of indispensability involves "at least" the following considerations:

1. Do absent parties have a right or interest related to the claim?

2. If so, what is the nature of that right or interest?

3. Is that right or interest essential to the merits of the issue?

4. Can justice be afforded without violating the due process rights of absent parties?

Centolanza v. Lehigh Valley Dairies, Inc., 540 Pa. 398, 658 A.2d 336, 338-39 (1995) (quoting CRY, supra) (quoting Mechanicsburg Area School District v. Kline, 494 Pa. 476, 431 A.2d 953, 956 (1981)). Applying these criteria to the matter sub judice, it is apparent that the Governor is an indispensable party to this action for declaratory and injunctive relief.

The Governor clearly has a direct, concrete interest in this matter, which involves legislation that Justice Saylor aptly describes as having a "unique character." In its complaint, appellant sought a declaration that 53 Pa.C.S. § 5508.1 is unlawful, null, and void, and sought a temporary and permanent injunction preventing the carrying into effect of any provision of the section, including the seating of any new members of the Board serving by gubernatorial appointment. In addition, appellant sought a declaration that the manner by which the Board is selected may not be changed until all outstanding bonds of the PPA are fully met and discharged, as well as a temporary and permanent injunction preventing the seating of any new members of the Board until such bonds are fully met and discharged. Section 5508.1 authorizes the Governor to appoint immediately six additional members to the Board, to fill any vacancies in the Board as they arise, and to remove Board members upon clear and convincing evidence of misfeasance or malfeasance in office. See 53 Pa.C.S. § 5508.1(e)-(h). In point of fact, the Governor did act to implement the new legislation by appointing six new members of the Board. Indeed, it was this action that triggered the instant lawsuit. Appellant's requests for declaratory and injunctive relief, if granted, would act to restrict the Governor and necessarily implicate the Governor's specific powers and interest under Act 22.

I do not doubt the validity of the appellant's argument that the fact that a challenged statute may be declared unconstitutional does not, of itself, make the Governor an indispensable party to an action. See Pennsylvania School Boards, 696 A.2d at 867-68. Indeed, if that were the law, the Governor could be deemed indispensable to every action challenging the constitutionality of legislation. Here, however, the nature of the Governor's interest is decidedly not, as appellant contends, merely a generic interest in seeing Act 22 declared lawful; it is a specific interest having to do with the unique character of this legislation, and the Governor's authority under the statute. The challenged statute grants to the Governor certain powers and duties with respect to its implementation. Those powers are not merely ministerial. By vesting in the Governor the power to decide who will control the PPA, the legislation authorizes the Governor to frame and attempt to promote certain policies. Indeed, it is this very fact which aggrieves the City, i.e., the fact that it will be the Governor, rather than the Mayor, to whom the Board now will be responsible. No doubt this explains why the City sought to enjoin the seating of the new Board and joined the Governor in its federal lawsuit. The Governor thus has a direct interest in the litigation, i.e., an interest in participating in the determination of the validity and scope of his authority under this unique, take-over legislation. This is an interest that is not shared by the named defendants or any other party. Contrast id. at 868 (Governor not indispensable to counts challenging legality of law since they are not "directed towards the Governor in any way, and law ... does not give the Governor any powers or duties with respect to its enforcement or administration ") (emphasis added).

This is not to say that the Governor is indispensable to any dispute involving a governmental body appointed by the Governor. Owing to the Governor's expansive appointive powers, such a rule would render the Governor indispensable to a vast number of lawsuits, many of which would, at most, only tangentially implicate his interests. This matter, however, is not a garden-variety action involving a governmental entity whose members happen to have been appointed by the Governor. It is a direct, constitutional challenge by the City of the Philadelphia to the very statutory provision authorizing the Governor to appoint and monitor the members of the Authority's governing body and thereby direct PPA policy. It involves a statute that dramatically shifts control of an agency from the Mayor to the Governor. Moreover, the complaint seeks declaratory relief. See discussion infra. Where, as here, the Governor's appointive power is not merely incidental to the declaratory judgment litigation, but, in fact, is the sine qua non of the dispute, I believe that the Governor has a right to be heard in the matter.

The Governor's interest also is essential to the resolution of the underlying dispute. A party is essential if his "rights are so directly connected with and affected by [the] litigation that he must be a party of record to protect such rights." Mechanicsburg, 431 A.2d at 957 (quoting Columbia Gas Transmission Corp. v. Diamond Fuel Co., 464 Pa. 377, 346 A.2d 788, 789 (1975)). Appellant argues that granting its requested relief will not affect the Governor since he has already appointed six members to the Board pursuant to Act 22 and these individuals have taken their seats on the...