DeLuca’s Auto Repair Inc., et al. v. City of Hazleton, et al.

CourtDistrict Court, M.D. Pennsylvania
DecidedMarch 27, 2026
Docket3:25-cv-00511
StatusUnknown

This text of DeLuca’s Auto Repair Inc., et al. v. City of Hazleton, et al. (DeLuca’s Auto Repair Inc., et al. v. City of Hazleton, et al.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeLuca’s Auto Repair Inc., et al. v. City of Hazleton, et al., (M.D. Pa. 2026).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF PENNSYLVANIA

DELUCA’S AUTO REPAIR INC., et al.,

Plaintiffs, CIVIL ACTION NO. 3:25-cv-00511

v. (SAPORITO, J.)

CITY OF HAZLETON, et al.,

Defendants.

MEMORANDUM This is a federal civil rights action concerning an alleged public- private conspiracy to establish a municipal towing monopoly in the City of Hazleton. It was commenced when the plaintiffs filed their nine-count complaint against the 26 named defendants on March 20, 2025. Doc. 1. Nominally, there are five named plaintiffs, who can be divided into two groups for the purposes of this litigation. The first group of plaintiffs consists of DeLuca’s Auto Repair Inc., a defunct Pennsylvania corporation formerly in the business of providing vehicle towing and salvage services in the Hazleton area,1 and Cynthia

1 Although the complaint alleges that DeLuca’s Auto Repair Inc. is a “defunct” corporation, it does not allege that the corporation has been Ann DeLuca, sole shareholder and successor/assignee of the defunct

corporation’s interests. The complaint refers to these two plaintiffs collectively as “DeLuca’s Towing.” The second group of plaintiffs consists of Zenier’s Automotive, Inc.,

a Pennsylvania corporation in the business of providing vehicle towing and salvage services in the Hazleton area, and its two principal shareholders, William George Buggy and Richard M. Buggy. The

complaint refers to these three plaintiffs collectively as “Zenier’s Towing.” The 26 named defendants are similarly divided into two groups, each of which is represented by separate counsel.

The first, and larger, group of defendants consists of the City of Hazleton and 22 of its municipal officials and employees: (1) Jeff Cusat, the current mayor of Hazleton; (2) Joseph Yannuzzi, his predecessor as

mayor of Hazleton; (3) James Perry, president of the Hazleton city council; (4) Tony Columbo, a city council member; (5) John “Jack” Mundie,

formally dissolved, and we note that the corporation remains marked as “active” in the state corporations database. Pa. Dep’t of State, Business Search, https://file.dos.pa.gov/search/business (File No. 3997465) (last visited Mar. 21, 2026). Fed. R. Evid. 201; , 539 F. Supp. 3d 463, 471 & n.4 (E.D. Pa. 2021) (taking judicial notice of publicly available state corporation records). a city council member; (6) Mark Ondishin, a city council member;

(7) Lauran Sacco, a city council member; (8) David Sosar, a city council member; (9) Brian Schoonmaker, Hazleton’s police chief; (10) Jerry Speziale, his predecessor as police chief; (11) Robert DeMalfi, a Hazleton

police captain; (12) Anthony White, a Hazleton police captain; (13) Kirk Wetzel, a Hazleton police lieutenant; (14) Keith McAlarney, a Hazleton police sergeant; (15) Cameo “Mark” Zola, a Hazleton police sergeant;

(16) William Gallagher, a Hazleton police detective; (17) Brett Green, a Hazleton police detective; (18) Chris Zubris, a Hazleton police corporal; (19) Diane Panzarella, a Hazleton code enforcement officer; (20) Nadine

Sist, a Hazleton code enforcement officer; (21) Christopher Pavlick, a Hazleton right-to-know officer; and (22) Gary Perna, a Hazleton right-to- know officer.

The second group of defendants consists of Paul’s Auto Body and Mechanical Repair Center, Inc., a Pennsylvania corporation in the business of providing vehicle towing services in the Hazleton area, and

its two principals, Paul F. Sateach and Paul J. Sateach.2 The complaint

2 Counsel for Paul’s Towing has advised the court that the complaint has misidentified these defendants as Paul Sateach Sr. and Paul Sateach Jr. , Doc. 9. Their identities are not otherwise in dispute. refers to these three plaintiffs collectively as “Paul’s Towing.”

The complaint broadly alleges a long-running civil conspiracy between Hazleton municipal officials and Paul’s Towing to eliminate competition and establish a municipal towing monopoly for the benefit of

Paul’s Towing—a male-owned business with personal and familial ties to Hazleton’s political leadership. Primarily, the complaint alleges that, in 2019 and again in 2023, Hazleton issued requests for proposals (RFPs)

for an exclusive municipal towing contract. Ultimately, the City awarded both exclusive towing contracts to Paul’s Towing in a process that was allegedly rigged to favor Paul’s Towing over other, allegedly more

qualified bidders, including the plaintiffs. In addition, the complaint alleges that, from 2016 through 2023, the City and its officials refused to complete statutorily mandated salvage paperwork for DeLuca’s Towing,

preventing the business from disposing of abandoned vehicles it had towed to and stored on its property, causing financial losses in excess of $2.7 million.

On behalf of both Zenier’s Towing and DeLuca’s Towing, the complaint asserts a § 1983 Fourteenth Amendment procedural due process claim (Count I), a § 1983 Fourteenth Amendment “class of one” equal protection claim (Count II), a state common law restraint of trade

claim (Count III), and a state common law tortious interference with prospective economic advantage claim (Count IV) against “all defendants.” On behalf of DeLuca’s Towing only, the complaint asserts a

§ 1983 Fourteenth Amendment sex discrimination equal protection claim (Count V) and a § 1985(3) conspiracy to interfere with equal protection rights claim (Count VI) against “all defendants,” as well as a § 1983

Fourteenth Amendment procedural due process claim (Count VII), a § 1983 Fourteenth Amendment substantive due process claim (Count VIII), and a state common law unjust enrichment claim (Count IX)

against “all defendants []except Paul’s Towing.” For relief, the plaintiffs seek an award of damages, as well as declaratory and injunctive relief.3

Both sets of defendants have moved to dismiss the complaint. Doc. 8; Doc. 17. These dismissal motions are fully briefed and ripe for decision. Doc. 14; Doc. 21; Doc. 27; Doc. 28; Doc. 33; Doc. 34.

3 With respect to Count III, asserting a common law restraint of trade claim, the plaintiffs seek injunctive relief only. I. LEGAL STANDARDS A. Rule 12(b)(1) Standard

Rule 12(b)(1) of the Federal Rules of Civil Procedure authorizes a defendant to move to dismiss for “lack of subject-matter jurisdiction.” Fed. R. Civ. P. 12(b)(1). The plaintiff bears the burden of establishing the

existence of subject matter jurisdiction when challenged under Rule 12(b)(1). , 926 F.2d 1406, 1409 (3d Cir. 1991). A defendant may challenge the existence of subject matter

jurisdiction in one of two fashions: it may attack the complaint on its face or it may attack the existence of subject matter jurisdiction in fact, relying on evidence beyond the pleadings.

, 220 F.3d 169, 176 (3d Cir. 2000); , 549 F.2d 884, 891 (3d Cir. 1977). Where a defendant attacks a complaint as deficient on its face, “the court must consider the

allegations of the complaint as true.” , 549 F.2d at 891. “In deciding a Rule 12(b)(1) facial attack, the court may only consider the allegations contained in the complaint and the exhibits attached to the

complaint; matters of public record such as court records, letter decisions of government agencies and published reports of administrative bodies; and ‘undisputably authentic’ documents which the plaintiff has identified

as a basis of his claims and which the defendant has attached as exhibits to his motion to dismiss.” , No.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Vera v. Tue
73 F.3d 604 (Fifth Circuit, 1996)
Moose Lodge No. 107 v. Irvis
407 U.S. 163 (Supreme Court, 1972)
Blum v. Yaretsky
457 U.S. 991 (Supreme Court, 1982)
City of Oklahoma v. Tuttle
471 U.S. 808 (Supreme Court, 1985)
Kentucky v. Graham
473 U.S. 159 (Supreme Court, 1985)
Carnegie-Mellon University v. Cohill
484 U.S. 343 (Supreme Court, 1988)
Heller v. Doe Ex Rel. Doe
509 U.S. 312 (Supreme Court, 1993)
Tellabs, Inc. v. Makor Issues & Rights, Ltd.
551 U.S. 308 (Supreme Court, 2007)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Warren General Hospital v. Amgen Inc.
643 F.3d 77 (Third Circuit, 2011)
Brittany Morrow v. Barry Balaski
719 F.3d 160 (Third Circuit, 2013)
Phillips v. County of Allegheny
515 F.3d 224 (Third Circuit, 2008)
Crighton v. Schuylkill County
882 F. Supp. 411 (E.D. Pennsylvania, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
DeLuca’s Auto Repair Inc., et al. v. City of Hazleton, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/delucas-auto-repair-inc-et-al-v-city-of-hazleton-et-al-pamd-2026.