Whittaker v. County of Lawrence

• Decision Date: 07 December 2009
• Docket Number: Civil Action No. 04-1092.
• Citation: 674 F.Supp.2d 668
• Parties: Thomas R. WHITTAKER, Christy L. Whittaker, Estate of David C. Hamilton, and Edna J. Hamilton, as Executrix of the Estate of David C. Hamilton, Plaintiffs, v. COUNTY OF LAWRENCE, Township of Neshannock, Lawrence County Economic Development Corporation, Redevelopment Authority of Lawrence County, Steve J. Craig, Daniel J. Vogler, Frank Telesz, James Gagliano, Jr., Dennis F. Alduk, Joseph Caminiti, Ryan Kegel, Jon Natale, Gale E. Measel, Jr., Robert Del Signore, Sr., and Linda Nitch, Defendants.
• Court: U.S. District Court — Western District of Pennsylvania

674 F.Supp.2d 668

Thomas R. WHITTAKER, Christy L. Whittaker, Estate of David C. Hamilton, and Edna J. Hamilton, as Executrix of the Estate of David C. Hamilton, Plaintiffs, v. COUNTY OF LAWRENCE, Township of Neshannock, Lawrence County Economic Development Corporation, Redevelopment Authority of Lawrence County, Steve J. Craig, Daniel J. Vogler, Frank Telesz, James Gagliano, Jr., Dennis F. Alduk, Joseph Caminiti, Ryan Kegel, Jon Natale, Gale E. Measel, Jr., Robert Del Signore, Sr., and Linda Nitch, Defendants.

Civil Action No. 04-1092.

United States District Court, W.D. Pennsylvania.

December 7, 2009.

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Michael K. Parrish, Thomas T. Frampton, Goehring, Rutter & Boehm, Pittsburgh, PA, for Plaintiffs.

Gabriel P. Cilli, Cilli & Perrotta, Thomas W. Leslie, New Castle, PA, Samuel P. Kamin, John J. Arminas, Goldberg, Kamin & Garvin, Thomas P. McGinnis, Thomas, Thomas & Hafer, Daniel R. Michelmore, Robert J. Grimm, Swartz Campbell, Alan E. Johnson, Christian D. Marquis, Scott G. Dunlop, Marshall, Dennehey, Warner, Coleman & Goggin, Pittsburgh, PA, for Defendants.

MEMORANDUM OPINION

NORA BARRY FISCHER, District Judge.

I. Introduction

This action concerns an exercise of eminent domain power alleged to have been in violation of both the United States Constitution and the Pennsylvania Constitution. Currently pending before the Court is a motion to dismiss filed by the Defendants pursuant to Federal Rule of Civil Procedure 12(b)(6). (Docket No. 161). For the reasons that follow, that motion will be granted with respect to all federal constitutional claims contained in the second amended complaint. The Court will decline to exercise supplemental jurisdiction over the Plaintiffs' state constitutional claims.

II. Factual Background and Procedural History

Since this matter comes before the Court on a motion to dismiss, the allegations contained in the second amended complaint are assumed to be true. Leatherman v. Tarrant County Narcotics Intelligence & Coordination Unit, 507 U.S. 163, 164, 113 S.Ct. 1160, 122 L.Ed.2d 517 (1993). Plaintiffs Thomas R. Whittaker and Christy L. Whittaker ("the Whittakers"), are adult individuals who maintain their residence on Kings Chapel Road, which is located in Neshannock Township ("Neshannock"), Pennsylvania. (Docket No. 126, ¶ 1). Plaintiff David C. Hamilton ("Hamilton") was the owner of real property located at RD #3, Box 599, in New Castle, Pennsylvania. (Id., ¶ 2). He is now deceased, and the property at issue is a part of his estate. (Id.,). The estate is being administered by Edna J. Hamilton ("Edna"). (Id.).

The County of Lawrence ("Lawrence County") is a political subdivision classified as a fifth-class county under Pennsylvania law. (Id., ¶ 3). Neshannock is a second-class township located in Lawrence County. (Id., ¶ 4). The Lawrence County Economic Development Corporation ("LCEDC") is a nonprofit corporation which maintains its mailing address in New Castle. (Id., ¶ 5). The Redevelopment Authority of Lawrence County ("RALC") is a redevelopment authority organized pursuant to Pennsylvania's Urban Redevelopment Law ("URL") [35 PA. STAT. § 1701 et seq.]. At all times relevant to this case, Steve J. Craig ("Craig") and Daniel J. Vogler ("Vogler") were Lawrence County Commissioners. (Id., ¶¶ 7-8). Frank Telesz ("Telesz") was the Chairman of the Lawrence County Planning Commission ("Planning Commission"). (Id., ¶ 9). James Gagliano, Jr. ("Gagliano") was the Director of the Lawrence County Department of Planning and the Executive Director of the RALC. (Id., ¶ 10). Dennis F. Alduk ("Alduk") was a member of the RALC. (Id., ¶ 11). Joseph Caminiti ("Caminiti") was both a member of the RALC and the President of its Board of Directors ("Board"). (Id., ¶ 12). W. Ryan Kegel ("Kegel") and Jon Natale ("Natale") were members of the RALC's Board. (Id., ¶¶ 13-14). Gale E. Measel, Jr. ("Measel") served on Neshannock's Board of Supervisors. (Id., ¶ 15). Robert Del Signore, Jr. ("Del Signore") was a Director and President of the LCEDC. (Id., ¶ 16). Linda Nitch ("Nitch") was both a member of the Planning Commission and the Executive Director of the LCEDC. (Id., ¶ 17). Each of these individuals was involved in the proposed development of 500 acres of property into an industrial park that was to be known as "Millennium Park." (Id., ¶ 18).

The parcels of property owned by Hamilton and the Whittakers were located within the proposed development. (Id., ¶ 29). Hamilton's property consisted of approximately 2.5 acres of land, while the property owned by the Whittakers consisted of roughly 84 acres of land. In Re: Condemnation by the RALC, 962 A.2d 1257, 1258 (Pa.Commw.Ct.2008). On September 18, 2002, members of the LCEDC displayed the site to individuals who had been sent by the Ch2M Hill Industrial Design Corporation ("IDC"). (Docket No. 126, ¶ 28). Less than a month later, Lawrence County officials pledged in a letter to the IDC to do their "utmost to facilitate" the Millennium Park project. (Id., ¶ 38). Gagliano, Measel and Nitch appeared before the Lawrence County Commissioners on November 19, 2002, in order to request the creation of the RALC. (Id., ¶ 40). The RALC's purpose was to assist the LCEDC in achieving its economic development goals. (Id., ¶ 40). Nitch advised the Commissioners that she needed the RALC as a "tool in her toolbelt." (Id., ¶ 41).

By 2003, the LCEDC was actively marketing the "Millennium Park site" even though it had not acquired the parcels of property owned by Hamilton and the Whittakers. (Id., ¶ 29). Potential buyers sometimes trespassed on the property without the consent of the owners. (Id., ¶ 32). Because the Plaintiffs were unwilling to sell their parcels of property to the LCEDC, the Defendants allegedly devised a scheme to have the RALC created in order to facilitate the condemnation of the parcels and their eventual transfer to the LCEDC. (Id., ¶¶ 35-36).

Lawrence County created the RALC on February 4, 2003. (Id., ¶ 43). This action was allegedly taken for the sole purpose of condemning the Plaintiffs' parcels of property on the pretextual ground that they were "blighted." (Id.). One week later, state officials met with Nitch, Measel, and other LCEDC and Neshannock officials to discuss funding for the Millennium Park project. (Id., ¶ 44). On February 19, 2003, the LCEDC formally adopted Resolution R2003-6, which explicitly targeted the Plaintiffs' property for acquisition. (Id., ¶ 45). An agreement entered into on April 22, 2003, between Lawrence County and the LCEDC indicated that, if necessary, eminent domain powers would be invoked in order to facilitate the Millennium Park project. (Id., ¶ 46). On May 21, 2003, Neshannock and the LCEDC entered into a cooperation agreement designed to further the project. (Id., ¶ 47). This agreement, which was signed by Vogler and Measel on behalf of Neshannock, provided funding for the proposed development. (Id.). That same day, Neshannock passed Resolution 2003-61, which designated the parcels of property owned by the Plaintiffs as tax-exempt on the ground that they were "experiencing distress characterized by high unemployment, low investment of new capital, blighted conditions, and underutilized obsolete or abandoned industrial, commercial, and residential structures, and deteriorated tax base." (Id., ¶ 51). Lawrence County adopted a similar "tax-exempt" resolution concerning the Plaintiffs' property on May 27, 2003. (Id., ¶ 52).

On June 11, 2003, the LCEDC convened a meeting to discuss the impending condemnation proceedings. (Id., ¶ 54). Gagliano, Measel, Del Signore and Nitch were all present at the meeting. (Id.). It was determined that the LCEDC would make final offers for the purchase of the Plaintiffs' property with the admonition that the Plaintiffs' refusal to sell would result in the initiation of eminent domain proceedings. (Id.). In June 2003, the LCEDC offered to pay the Whittakers $13,124.30 for each acre of their property, for a total of over $1,000,000.00. (Id., ¶ 74). The Whittakers did not accept the offer. (Id.). A similar offer was made to Hamilton, who likewise declined to sell his property. (Id., ¶ 75).

On June 18, 2003, the IDC agreed to provide engineering services to the LCEDC in order to facilitate the development of the Millennium Park site. (Id., ¶ 55). At an LCEDC meeting conducted on July 16, 2003, Gagliano stated that the Lawrence County Commissioners had approved the RALC's efforts to provide assistance to the LCEDC by acquiring the Plaintiffs' property, that the RALC had no intentions of retaining ownership of the property, and that the RALC would ultimately sell the property to the LCEDC. (Id., ¶ 57). Craig publicly acknowledged that discussions were underway between Lawrence County and the LCEDC concerning the acquisition of the Plaintiffs' property and the subsequent development of an industrial park. (Id., ¶ 59). Before the end of July 2003, the Planning Commission informed George Haberman ("Haberman"), an IDC official, that the establishment of the RALC had been necessary in order to condemn certain parcels of property located within the Millennium Park site. (Id., ¶ 58). The IDC was advised that the LCEDC's agreements with contractors would be revised to indicate that such contractors were agents of both the LCEDC and the RALC. (Id., ¶ 60). On July 22, 2003, Nitch informed Gagliano that the IDC needed to begin its work as soon as possible in order to meet the LCEDC's deadline for completing the redevelopment of the site. (Id., ¶ 61).

The RALC held its first corporate meeting on July 23, 2003. (Id., ¶ 62). On that occasion, a resolution was passed indicating that the RALC was going to prepare a redevelopment plan for a site in Neshannock in order to facilitate the construction of Millennium Park. (Id.). Nitch spoke in favor of the plan. (Id.). Caminiti, Natale, Alduk and Telesz all voted in favor of...