Germantown Cab Co. v. Philadelphia Parking Authority
171 A.3d 315
| Pa. Commw. Ct. | 2017Background
- In 2004 the General Assembly transferred regulation of Philadelphia taxicabs from the PUC to the Philadelphia Parking Authority ("Authority") (Act 94); the Authority funds regulation via an assessment scheme (Chapter 57).
- After this Court struck down the original assessment process as an unconstitutional delegation in MCT Transportation, the Legislature enacted Act 64 (2013) to revise Sections 5707/5708 and add related provisions (including PR-1 filings and a fee process).
- For FY2015 the Authority set a taxicab budget shortfall of $2,438,972 and estimated 1,674 taxicabs in service (1,599 medallions; 75 partial-rights), producing a $1,457 per-taxicab assessment.
- The Authority assessed more vehicles (1,801 total) and did not reduce the per-vehicle assessment; partial-rights carriers were assessed per vehicle and some (including GCC and BCS) did not pay and challenged the assessments administratively.
- After administrative hearings and a common pleas affirmation, this Court reversed, holding Section 5707 facially unconstitutional (unreasonable assessment scheme and unlawful delegation) and finding related due-process/record-production issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Arbitrary/unreasonable assessment scheme (Section 5707(c)) | GCC: A flat per-vehicle assessment treats partial-rights and medallion cabs identically despite material differences, imposing disproportionate burdens and lacking relation to regulatory purpose | Authority: Treating all taxed vehicles the same is consistent with statute and rationally related to regulatory funding needs | Court: Section 5707(c) is arbitrary and unreasonable; treating medallions and partial-rights alike without accounting for differing in‑service rights lacks a real substantial relation to the regulatory objective; facially unconstitutional |
| Substantive due process / property interest | BCS/GCC: Holders of certificates have protected property rights; statute unduly burdens that right without rational relation | Authority: No fundamental right to operate a taxicab; statute furthers legitimate regulatory objectives and survives rational-basis review | Court: Carriers hold protected property interests; the assessment scheme fails substantive due process because it is arbitrary and irrational |
| Unconstitutional delegation of legislative power (Section 5707) | BCS: Act 64 still fails to provide standards or limits guiding the Authority in budgeting, allocation among utility groups, and fee-setting—replicates defects from MCT Transportation | Authority: Budget is reviewed by Governor and General Assembly, curing prior delegation concerns | Court: Section 5707 remains an unlawful delegation—Legislature did not supply adequate standards directing the Authority's discretion |
| Procedural due process re: payment/appeal and records (Section 5707.1 & 5707(b)) | BCS: Holding assessment pending challenge forces pay-or-risk-revocation; Authority failed to produce detailed cost/allocation records needed to contest assessments | Authority: Statutory notice, administrative hearing process and budget notice satisfy process; produced budget submissions | Court: Procedural process (notice and hearing) suffices (challenge and hearing available), but Authority must maintain and produce more than the budget submission documents per Section 5707(b); nevertheless remedy not premised solely on records issue |
Key Cases Cited
- MCT Transportation, Inc. v. Philadelphia Parking Authority, 60 A.3d 899 (Pa. Cmwlth.) (struck prior Section 5707(b) as unconstitutional delegation; discussed due process concerns)
- Bucks County Services, Inc. v. Philadelphia Parking Authority, 104 A.3d 604 (Pa. Cmwlth. 2014) (court recognized operational differences between medallion and partial-rights cabs and invalidated certain Authority regulations)
- Germantown Cab Co. v. Philadelphia Parking Authority, 150 A.3d 16 (Pa. 2016) (related procedural/addressing venue for constitutional challenges)
- Tire Jockey Serv., Inc. v. Dep’t of Envtl. Prot., 915 A.2d 1165 (Pa. 2007) (framework for reviewing agency rulemaking challenged as arbitrary)
- Khan v. State Bd. of Auctioneer Examiners, 842 A.2d 936 (Pa. 2004) (licensed occupations confer protected property interests for due process analysis)