Commonwealth v. National Apartment Leasing Co.

529 A.2d 1157, 108 Pa. Commw. 300, 1987 Pa. Commw. LEXIS 2372
CourtCommonwealth Court of Pennsylvania
DecidedAugust 10, 1987
DocketNo. 185 C.D. 1986
StatusPublished
Cited by13 cases

This text of 529 A.2d 1157 (Commonwealth v. National Apartment Leasing Co.) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth v. National Apartment Leasing Co., 529 A.2d 1157, 108 Pa. Commw. 300, 1987 Pa. Commw. LEXIS 2372 (Pa. Ct. App. 1987).

Opinion

Opinion by

Judge MacPhail,

National Apartment Leasing Company (NALCO) has filed preliminary objections to the Commonwealths amended civil action in equity1 filed in our original jurisdiction. We will overrule the objections.

[302]*302In NALCO I we set forth in some detail the gravamen of the Commonwealths action. Suffice it to say that the Attorney General in the name of the Commonwealth, pursuant to the authority he claims to have under the provisions of the Unfair Trade Practices and Consumer Protection Law (Law), Act of December 17, 1968, P.L. 1224, as amended, 73 P.S. §§201-1—201-9.2, seeks to impose civil penalties upon NALCO and also enjoin it from using in the conduct of its business methods, acts or practices which have been declared unlawful by Section 3 of that Law, 73 P.S. §201-3.

In the amended pleading now before us, the Commonwealth alleges that NALCO is engaged in the business of renting apartments and residential units in the Pittsburgh area; that it requires security deposits from each of its tenants; that the Commonwealth has received complaints from former tenants of NALCO averring that NALCO has unlawfully withheld from their security deposits sums of money for cleaning the premises when, in fact, such cleaning services were unnecessary; that this fraudulent conduct violated the Law and The Landlord and Tenant Act of 1951, Act of April 6, 1951, P.L. 69, as amended, 68 P.S. §§250.101— 250,602, and that citizens of the Commonwealth are suffering and will continue to suffer irreparable harm unless the acts and practices complained of are enjoined.

NALCO has filed 42 objections to the amended pleading raising a question of jurisdiction, a motion to strike alleging that the pleading lacks conformity to rule of court and contains scandalous and impertinent matter, a request for a more specific pleading, a demurrer [303]*303and the lack of capacity to sue and pendency of prior actions.2

Jurisdiction

NALCO contends that the Law is unconstitutional and since the Attorney General commenced this action pursuant to the provisions of the Law, this Court lacks both subject matter and personal jurisdiction. In NALCO I we held that we did not need to address the constitutional issue inasmuch as there were other reasons why the challenged pleading was deficient.

As will be noted, the Law has been in effect in the Commonwealth for nearly 20 years. It does not appear that its constitutionality has been determined in any reported case. The legislative history of the act is discussed in great detail in Commonwealth v. Monumental Properties, Inc., 459 Pa. 450, 329 A.2d 812 (1974). In that case it is noted that the Law has regularly been interpreted by this Court as being based upon the Federal Trade Commission Act, 15 U.S.C. §§41-58, and the Lanham Trademark Act, 15 U.S.C. §§1051-1127.

NALCOs first constitutional argument is that the Law is, in fact, a penal statute because it provides for penalties in Section 8, 73 P.S. §201-8. NALCO then argues that because it is a penal statute, the provisions of Amendments I, IV, V and XIV of the United States Constitution apply. NALCO says that the statute unlawfully establishes a new crime of “unfairness” in the definition section, Section 2, 73 P.S. §201-2, and that in Section 4, 73 P.S. §201-4, it empowers the government [304]*304to obtain prior restraint of “unfair speech” and to control all commercial activity in the Commonwealth based upon the governments purely subjective and undefined determination of whether such activities are fair.

Inasmuch as NALCOs contention that the statute is criminal is based solely upon the argument that the provisions of Section 8 render it so, we must examine what that section says and how it has been applied by the courts. First of all, it must be observed that the Legislature denoted the penalties therein set forth as civil penalties.3 In United States v. J. B. Williams Co., Inc., 498 F.2d 414 (2d Cir. 1974), the U.S. Second Circuit Court of Appeals held that similar civil penalties provided for in section 5(1) of the Federal Trade Commission Act, 15 U.S.C. §45(1), did not entitle a party being prosecuted by the Federal Trade Commission for deceptive practices to a jury trial.4 That Court noted that “[w]hen Congress has characterized the remedy as civil and the only consequence of a judgment for the Government is a money penalty, the courts have taken Congress at its word.”J. B. Williams Co., Inc., 498 F.2d at 421. That Court refused to overlook Congress’ characterization of the penalty as civil and concluded that the accused party was not entitled to a jury trial under the Sixth Amendment of the United States Constitution. Our courts also have consistently paid heed to the legis[305]*305lative mandate that the penalties provided in the Law are civil in nature. Biester v. Luther Ford Sales, Inc., 60 Pa. Commonwealth Ct. 123, 430 A.2d 1053 (1981) and Commonwealth v. Flick, 33 Pa. Commonwealth Ct. 553, 382 A.2d 762 (1978).

We conclude that the Law is civil in nature and that no new crime was created by its provisions. We further conclude that inasmuch as Section 2 of the Law sets forth with much specificity the definition of “unfair methods of competition” and “unfair or deceptive acts or practices,” the Commonwealth does not have unbridled authority to determine which activities are fair and which are not.

NALCO also argues that the provisions of Section 4 of the Law, 73 P.S. §201-4, which authorize the Attorney General or a District Attorney to bring an action where that officer has reason to believe that any person is using “or is about to use” any method, act or practice declared to be unlawful, may effect an unconstitutional prior restraint on speech. It is not at all clear to this Court, however, that any prior restraint aspect of the Law has been implicated in the Commonwealths suit against NALCO. As our. Supreme Court has observed in Commonwealth v. Bonadio, 490 Pa. 91, 94 n. 2, 415 A.2d 47, 49 n. 2 (1980):

The question of the constitutionality of a statute cannot generally be determined abstractly but rather is to be determined only as it applies and is sought to be enforced in a particular case before the court, since the power to repeal a statute is not judicial in character; and, furthermore, one who is unharmed by a particular feature of a statute will not be heard to complain of its alleged unconstitutionality.

Applying these principles to the instant matter, we must decline to address the prior restraint of speech [306]

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Com. v. NALCO.
529 A.2d 1157 (Commonwealth Court of Pennsylvania, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
529 A.2d 1157, 108 Pa. Commw. 300, 1987 Pa. Commw. LEXIS 2372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-v-national-apartment-leasing-co-pacommwct-1987.