JAMES J. GORY MECHANICAL CONTRACTING, INC., Appellee, v. PHILADELPHIA HOUSING AUTHORITY, Appellant.
Supreme Court of Pennsylvania.
Aug. 17, 2004.
855 A.2d 669
Argued Oct. 20, 2003.
BEFORE: CAPPY, C.J., and CASTILLE, NIGRO, NEWMAN, SAYLOR, EAKIN and LAMB, JJ.
OPINION OF THE COURT
Justice NIGRO.
We granted allowance of appeal in the instant case to resolve whether the Philadelphia County Court of Common Pleas (the “Trial Court“) had original jurisdiction over the underlying action brought against the Philadelphia Housing Authority (“PHA“). We hold that the Trial Court did indeed have original jurisdiction over the case and therefore affirm the Superior Court‘s finding in that respect.
On February 9, 2000, Appellee James J. Gory Mechanical Contracting, Inc. (“Gory“) filed a complaint against the PHA in the Trial Court, alleging that PHA had breached a construction contract it had entered into with Gory (the “Contract“) by causing delays in Gory‘s completion of its work and by failing to pay Gory for all of its work, including the extra days it had to work due to the delays.1 The Trial Court subsequently held a bench trial and on July 12, 2001, it entered an order and opinion, finding that PHA had breached the Contract and that Gory was entitled to $141,500.00 in damages. After the Trial Court denied PHA‘s post-trial motions, PHA filed an appeal with the Commonwealth Court. On September 19, 2001, however, the Commonwealth Court entered an order stating: “[I]t appearing that this is a breach of contract dispute and as such is not within the jurisdiction of this court,
On May 2, 2002, the Superior Court entered a memorandum opinion affirming the Trial Court‘s order in favor of Gory. In its opinion, the Superior Court initially addressed the first issue raised by PHA in its appeal, which was ” [w]hether the Court of Common Pleas of Philadelphia County had subject matter jurisdiction [over the case]?” Super Ct. Op., 5/2/2002, at 2 (citing PHA‘s Super. Ct. Brf. at 4).3 The Superior Court noted that although PHA claimed that it was a state agency and that the Commonwealth Court therefore had original jurisdiction over
PHA subsequently filed a petition for allowance of appeal with this Court and we granted allocatur to address PHA‘s claim that it is a Commonwealth agency for purposes of jurisdiction based on this Court‘s decision in Marshall v. Port Auth. of Allegheny County, 524 Pa. 1, 568 A.2d 931 (1990), and our per curiam order in City of Philadelphia v. Philadelphia Parking Auth., 568 Pa. 430, 798 A.2d 161 (2002). Moreover, we agreed to consider PHA‘s tangential claim that if it is a Commonwealth agency for jurisdictional purposes, Gory‘s action should have been brought before the Board of Claims, rather than the Commonwealth Court. We now reaffirm our decision issued over twenty-eight years ago in T & R Painting Co., 466 Pa. 493, 353 A.2d 800, and thereby hold that PHA is a local agency for purposes of jurisdiction and Gory‘s claims were properly brought in the Trial Court. Given this decision, we also find, contrary to PHA‘s claims, that our decision in Marshall and our per curiam order in City of Philadelphia did not implicitly overrule T & R Painting Co. by requiring that PHA be deemed a Commonwealth agency.
Section 761 of the Judicial Code provides that the Commonwealth Court has original jurisdiction over all civil actions brought against the “Commonwealth government” unless one or more of four specific exceptions apply.
As the Superior Court pointed out, this Court addressed the very issue of whether PHA is a Commonwealth agency for purposes of jurisdiction several years ago in T & R Painting Co. In that case, PHA argued that it was a Commonwealth agency and therefore any civil actions brought against it had to be filed with the Commonwealth Court.8 In support of its claim that it was a Commonwealth agency, PHA relied on Section 1550 of the Housing Authorities Law (the “Housing Law“),9 which defines the powers of housing authorities, such as PHA, and states as follows: “An Authority shall constitute a public body, corporate and politic, exercising public powers of the Commonwealth as an agency thereof ....”
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Section 1543(g), which describes a housing authority‘s field of operation as “[t]he area within the territorial boundaries of the city or county for which the particular housing authority is created.” 35 P.S. § 1543(g) . - Section 1544, which states that housing authorities shall be created as “separate and distinct bodies, corporate and politic, one for each city, and one for each of the counties of the Commonwealth,” and also indicates that housing authorities shall be created if “[t]he governing body of any city or county ... find[s] and declare[s] that there is a need for an Authority to function within the ... city or county.”
Id. § 1544 . - Section 1544.1, which grants the governing body of any city the power to dissolve a city housing authority if the authority has no outstanding obligations and the governing body “find[s] and declare[s] by proper resolution that [the Authority‘s] functions can be more properly carried out by a county authority.”
Id. § 1544.1 . - Section 1544.2, which grants the governing body of any county the power to dissolve a county housing authority if the authority has no outstanding obligations and the governing body “find[s] and declare[s] by proper resolution that there is no longer any need for the authority created for such county to function.”
Id. § 1544.2 . - Section 1545, which states that the city or county governing body that declared the need for a housing authority shall have the power to appoint county residents to be members of the authority. See
id. § 1545 . - Section 1546, which provides the local governing body with the power to fill vacancies on an authority‘s board. See
id. § 1546 . - Section 1550(j), which grants the authority power “[t]o arrange with the Commonwealth, its subdivisions and agencies, and any county, city or other municipality of the State ... (1) to cause the services customarily provided by each of them to be rendered for the benefit of such housing authority, or the occupants of any housing projects of the Authority; and (2) to provide and maintain parks, recreational centers, schools, sewerage, transportation, water, and other municipal facilities adjacent to, or in connection with, housing projects; and (3) to plan, replan, zone or rezone any part of the municipality in connection with any housing project of the Authority.”
Id. § 1550(j) . - Section 1562.1, which empowers a housing authority “to act as [an] agent of the State, or any of its instrumentalities or agencies, for the public purposes set out in this act.”
Id. § 1562.1 .10
After reviewing the above provisions, we concluded that because Section 1550 seemed to indicate that PHA was a Commonwealth agency while these other eight provisions indicated just the opposite, i.e., that PHA was a local agency, “[t]he language of the Housing Authorities Law does not specifically resolve the issue whether [PHA] is a local or state agency.” T & R Painting Co., 353 A.2d at 802.
Based on that finding, we determined that we had to discern whether the General Assembly intended lawsuits brought against PHA to be originally heard in the Commonwealth Court by looking beyond
[T]o reach any other conclusion [than that the authority is a local agency which may be sued in the local court of common pleas rather than in the Commonwealth Court] would lead to the absurd and unreasonable result that a citizen would be required to pursue his [remedy] in Harrisburg even though the records were located in the community and the agency involved had been created by an individual city or county and the issues involved were matters strictly within the concern of a particular locality rather than a concern of the Commonwealth generally. The General Assembly, of course, could not have intended such a result.
T & R Painting Co., 353 A.2d at 802 (quoting Levine v. Redevelopment Auth. of the City of New Castle, 17 Pa.Cmwlth. 382, 333 A.2d 190, 192 (1975)) (internal citations omitted).12 Accordingly, we concluded that PHA was not a Commonwealth agency subject to the Commonwealth Court‘s original jurisdiction, but rather was a local agency subject to suit in the Philadelphia trial courts.
In reviewing our decision in T & R Painting Co., we find that it applies just as strongly today as it did twenty-eight years ago. The Housing Law remains for the most part unchanged and consequently, still does not clearly define whether a housing authority is a Commonwealth agency or a local agency for purposes of jurisdiction. Moreover, the Commonwealth Court continues to serve as an original forum for resolving issues of statewide impact. See
PHA argues, however, that T & R Painting Co. is no longer controlling regarding a housing authority‘s status because this Court implicitly overruled T & R Painting Co. in Marshall v. Port Auth. of Allegheny County, 524 Pa. 1, 568 A.2d 931, and City of Philadelphia v. Phila. Parking Auth., 568 Pa. 430, 798 A.2d 161. We disagree.
In Marshall, the Commonwealth Court held that a lawsuit could not be brought against the Port Authority of Allegheny County (“PAT“) because PAT was a local agency and thereby immune from liability based on the governmental immunity provisions in the Judicial Code,
We then found that the legislation that created PAT, the Second Class County Port Authority Act (the “Port Authority Act“),14 made it “eminently clear that PAT is an agency of the Commonwealth.” Marshall, 568 A.2d at 933. Specifically, we pointed to Section 553(a) of the Port Authority Act, which states:
There are hereby created bodies corporate and politic in counties of the second
class, to be known as Port Authority of (insert name of county), which shall constitute public
bodies corporate and politic; exercising the public powers of the Commonwealth as an agency thereof.
Marshall, 568 A.2d at 933-34 (quoting
PHA argues that we are required to find that it is a Commonwealth agency based on Marshall because the language in Section 553(a) of the Port Authority Act, which we relied on in Marshall in finding PAT to be a Commonwealth agency, mirrors that in Section 1550 of the Housing Law. While we acknowledge that Section 553(a) of the Port Authority Act and Section 1550 of the Housing Law use similar language to describe second class county port authorities and housing authorities and that Section 553(a) of the Port Authority Act strongly influenced our finding in Marshall that PAT was a Commonwealth agency, we disagree with PHA that our decision in Marshall mandates that it now be deemed a Commonwealth agency for jurisdictional purposes. Our decision in Marshall solely concerned whether PAT was a Commonwealth agency for sovereign immunity purposes rather than for purposes of jurisdiction. Moreover, as both this Court and the Commonwealth Court have made clear, an entity‘s status varies “depending on the issue for which the determination is being made.” Pennsylvania State Univ. v. Derry Twp. Sch. Dist., 557 Pa. 91, 731 A.2d 1272, 1274 (1999); see also Safety, Agriculture, Villages and Environment, Inc. v. Delaware Valley Regional Planning Comm‘n, 819 A.2d 1235, 1238 (Pa.Commw.2003); Quinn v. Southeastern Pennsylvania Transp. Auth., 659 A.2d 613, 616 (Pa.Cmwlth.1995); Southeastern Pennsylvania Transp. Auth. v. Union Switch & Signal, Inc., 161 Pa.Cmwlth. 400, 637 A.2d 662, 666 (1994). Accordingly, because we were only concerned in Marshall with whether PAT was a Commonwealth agency for sovereign immunity purposes, we do not find that our decision there controls our decision here regarding PHA‘s status for a completely different purpose.
It is important to note in this regard that the sovereign immunity provisions of the Judicial Code were enacted to insulate the Commonwealth and its agencies from liability except in certain specified circumstances so that state governmental assets are not subject to depletion through multiple lawsuits. See Jones v. Southeastern Pennsylvania Transp. Auth., 772 A.2d 435, 438-40 (Pa.2001). Thus, in determining whether an entity is a Commonwealth agency for sovereign immunity purposes, the important factors to be considered are whether the entity was created by the state to perform a state function so that a judgment against it would, in essence, injure the state.16 In
As mentioned above, PHA also argues that our per curiam order in City of Philadelphia mandates that it be deemed a Commonwealth agency for jurisdictional purposes. According to PHA, our order in City of Philadelphia is controlling here as “it seems apparent” that the order was entered because a majority of this Court found that the Philadelphia Parking Authority (“PPA“) was a Commonwealth agency for jurisdictional purposes based on a provision in the Parking Authority Law17 that contains language mirroring that in Section 1550 of the Housing Law. See PHA‘s Brf. at 16; see also
Former Justice LAMB did not participate in the decision of this case.
Justice EAKIN files a dissenting opinion in which Justice NEWMAN joins.
Justice EAKIN, dissenting.
This Court has no authority to ignore the plain meaning of a statute in favor of tailoring an interpretation inconsistent with that language. The General Assembly enacts the laws, and if clear and unambiguous, this Court is bound to enforce those laws accordingly. There is nothing ambiguous about the Philadelphia Housing Authority‘s enabling statute—it is designated as “an agency of the Commonwealth.”
In T & R Painting Co. v. Philadelphia Housing Authority, 466 Pa. 493, 353 A.2d 800 (1976), the issue was whether the PHA is an agency of the Commonwealth or a local agency. The court held that since the enabling statute allowed for local government involvement in PHA affairs, the statute was ambiguous and the court could ignore the specific language in favor of envisioning the General Assembly‘s true meaning. T & R Painting, at 802. The court reasoned that to be an agency of the Commonwealth, the body must have statewide impact; absent this influence, an entity, even if delineated “an agency of the Commonwealth” by the General Assembly, was merely a local agency. Because the PHA dealt largely with Philadelphia concerns, the court stated it would be “absurd and unreasonable” to require an almost exclusive Philadelphia pool of litigants to travel and litigate its cases in Harrisburg‘s Commonwealth Court; “[t]he General Assembly, of course, could not have intended such a result.”
This reasoning was later rejected by this Court in Marshall v. Port Auth. of Allegheny County, 524 Pa. 1, 568 A.2d 931 (1990). The Marshall decision reviewed the enabling statute of the Port Authority of Allegheny County (PAT) and determined the “[e]xpress statutory language contained in the legislation which created PAT makes it eminently clear that PAT is an agency of the Commonwealth.”
There are hereby created bodies corporate and politic in counties of second class, to be known as Port Authority of (insert name of county), which shall constitute public bodies corporate and politic; exercising the public powers of the Commonwealth as an agency thereof.
An Authority shall constitute a public body, corporate and politic, exercising public powers of the Commonwealth as an agency thereof[.]
The Majority argues Marshall is irrelevant because the court was deciding whether PAT was entitled to sovereign immunity, from being a Commonwealth agency, or governmental immunity, which protects local agencies; we did not comment on PAT‘s status for jurisdictional purposes. However, this Court framed the issue in Marshall as: “The question presented, therefore, is whether PAT is an ‘agency of the Commonwealth,’ rather than one of the types of local agencies excluded from the definition of ‘Commonwealth government.‘” Marshall, at 933. The court abandoned T & R Painting‘s agency impact analysis and determined that if the General Assembly designates an entity an appendage of the state government, it is just that.
In my judgment, this is the proper result. It is not necessary for courts to analyze whether something walks or quacks like a duck—the legislature has said “this is a duck,” and even if it looks and sounds like a goose, the legislature has the exclusive power to do so. We should not be saying “they said it‘s a duck, but they really meant it‘s a goose,” nor should we hold “this is a duck for some purposes and a goose for other purposes.” How does anyone know which fowl it‘s going to be for purposes of whatever issue is raised the next time?
The Pennsylvania Constitution, Article V, § 4, states the Commonwealth Court‘s jurisdiction “shall be provided by law.”
Once the “Commonwealth government” is sued, § 761 is mandatory; this Court has no authority to recast a statutorily-defined state agency into a local agency by critiquing its functions. We may not change the jurisdiction of our courts, whether more practical or located closer to the cause of action. The General Assembly earmarked the PHA an agency of the Commonwealth; we are bound to give effect to this directive.
The Third Circuit addressed the issue of the PHA‘s status as either an agency of the Commonwealth or local agency and concluded that Marshall implicitly overruled T & R Painting. City of Philadelphia v. Lead Industries Assoc., Inc., 994 F.2d 112, 119 (1993). Applying Pennsylvania law, the federal court analyzed T & R Painting in light of Marshall and determined:
Marshall is controlling[, because t]he enabling statutes considered in Marshall and T & R Painting Co. contained virtually identical language ... and because, as a federal court sitting in diversity, we are bound to follow the pronouncement of a state‘s highest court on an issue of state law, we hold that PHA is an agency of the Commonwealth....”
In City of Philadelphia v. Philadelphia Parking Authority, 568 Pa. 430, 798 A.2d 161 (2002), we reversed an order of the
The uncertainty surrounding T & R Painting should be put to rest. This Court‘s subsequent decisions have abandoned its holding in favor of the more prudent course of giving effect to the expressed words of the PHA statute. It is time to formally overrule that case and hold that when the General Assembly calls a body an “agency of the Commonwealth,” we must give meaning to that designation.
I would reverse the order of the Superior Court and remand this case to the Board of Claims for disposition on the merits.
Justice NEWMAN joins this dissenting opinion.
