Germantown Cab Co. v. PPA
1989 and 1990 C.D. 2016
| Pa. Commw. Ct. | Sep 13, 2017Background
- Appellants (Germantown Cab Company and Bucks County Services, partial‑rights taxicab operators) challenged the Philadelphia Parking Authority’s (Authority) FY2015 per‑taxicab assessment under 53 Pa.C.S. § 5707 after the Authority set a $1,457 per‑cab rate to cover a taxicab budget shortfall.
- Act 94 (2004) transferred city taxicab regulation from the PUC to the Authority; Act 64 (2013) amended the budget/assessment process after this Court found the prior statutory scheme unconstitutional in MCT Transportation.
- Under § 5707(c), the Authority computes a ‘‘total assessment’’ (budget minus fees/available funds) and divides it by the Authority’s estimate of taxicabs to produce a per‑cab assessment; partial‑rights operators must file PR‑1 estimates by March 31.
- For FY2015 the Authority estimated 1,674 cabs (including 75 partial‑rights), divided the $2.44M taxicab shortfall by that estimate to reach $1,457, but ultimately assessed 1,801 cabs without lowering the per‑cab amount. Several partial‑rights operators did not timely file PR‑1s; GCC was assessed for many more cabs than it later reported.
- Appellants refused payment, administratively challenged the assessments, lost before the Authority and the Court of Common Pleas, and appealed to this Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 5707(c)’s per‑cab assessment scheme is arbitrary/unreasonable (substantive due process) | § 5707(c) treats medallion and partial‑rights cabs identically despite material differences, imposing disproportionate burdens on partial‑rights operators | The scheme advances a legitimate regulatory objective (funding taxicab regulation) and is rationally related to that goal | Held unconstitutional on its face: assessment scheme arbitrary, unreasonable, lacks substantial relation to regulatory goal; violates substantive due process |
| Whether § 5707(c) violates Equal Protection/Uniformity Clause | One‑size‑fits‑all assessment imposes disproportionate burdens on partial‑rights cabs | All taxicabs providing service in the City are a single class; identical treatment is reasonable | Rejected plaintiff’s challenge: medallion and partial‑rights cabs are not similarly situated; Equal Protection/Uniformity claims fail |
| Whether § 5707 (post‑Act 64) is an unconstitutional delegation of legislative power | Act 64 still fails to provide standards limiting the Authority’s discretion in budgeting and allocation; Governor/GA review is insufficient | Budget is reviewed by Governor and approved by General Assembly, curing the prior delegation problem | Held unconstitutional: § 5707 continues impermissible delegation because statute lacks standards guiding Authority’s budget/fee choices |
| Whether § 5707.1 and § 5707(b) provide adequate procedural safeguards and records | § 5707.1 forces operators to pay before meaningful relief; revocation risk denies prior process; Authority failed to produce detailed cost/allocation records under § 5707(b) | Statute provides notice, an appeal process, a hearing opportunity, and record access; payment obligation pending appeal is permitted | Procedural due process: rejected as to invalidating § 5707.1 (statutory notice/hearing found sufficient); records: Court interprets § 5707(b) as requiring production beyond mere budget submissions but did not need to resolve further because § 5707 was invalidated |
Key Cases Cited
- MCT Transportation, Inc. v. Philadelphia Parking Authority, 60 A.3d 899 (Pa. Cmwlth.) (holding former § 5707 unconstitutional; raises delegation and due process concerns)
- Commonwealth v. [Per curiam] (affirmance), 83 A.3d 85 (Pa. 2013) (appellate history related to MCT matters)
- [Per curiam] (affirmance), 81 A.3d 813 (Pa.) (appellate history related to MCT matters)
- Germantown Cab Co. v. Philadelphia Parking Authority, 150 A.3d 16 (Pa. 2016) (related review of Authority’s assessment and statutory remedy issues)
- Khan v. State Board of Auctioneer Examiners, 842 A.2d 936 (Pa. 2004) (licensed professionals have a protected property interest subject to reasonable regulation)
- Tire Jockey Service, Inc. v. Department of Environmental Protection, 915 A.2d 1165 (Pa. 2007) (principles on arbitrary rulemaking cited by the Court)
- National Automobile Service Corp. v. Barford, 137 A. 601 (Pa. 1927) (due process requires a hearing at some stage before condemning property)