EXP REALTY, LLC v. BOROUGH OF GLENOLDEN

CourtDistrict Court, E.D. Pennsylvania
DecidedApril 25, 2024
Docket2:23-cv-04287
StatusUnknown

This text of EXP REALTY, LLC v. BOROUGH OF GLENOLDEN (EXP REALTY, LLC v. BOROUGH OF GLENOLDEN) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EXP REALTY, LLC v. BOROUGH OF GLENOLDEN, (E.D. Pa. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

eXp REALTY, LLC and SUBURBAN CIVIL ACTION REALTORS ALLIANCE NO. 23-4287 v.

BOROUGH OF GLENOLDEN, BRIAN RAZZI, ANTHONY TARTAGLIA, and COMMONWEALTH CODE ENFORCEMENT, INC.

MEMORANDUM RE: MOTION TO DISMISS

Baylson, J. April 25, 2024

Plaintiffs eXp Realty and Suburban Realtors Alliance (collectively, “Plaintiffs”) filed suit against Defendants Borough of Glenolden, Brian Razzi, Anthony Tartaglia, and Commonwealth Code Enforcement, Inc. (“Commonwealth Code Enforcement”) for injunctive and declaratory relief. Plaintiffs challenge the purportedly unconstitutional application of Glenolden Borough Municipal Code and Ordinance § 61 (“the Ordinances”), and seek to enjoin enforcement of the Ordinances in any way that is inconsistent with the Municipal Code and Ordinance Compliance Act of the Commonwealth of Pennsylvania (“MCOCA”), 68 P.S. § 1082.1, et seq. Before this Court is Defendants Borough of Glenolden and Brian Razzi’s Motion to Dismiss (1) Plaintiffs’ Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) and (2) Plaintiff Suburban Realtors Alliance (“SRA”) due to lack of standing pursuant to Federal Rule of Civil Procedure 12(b)(1), as well as Defendants Anthony Tartaglia and Commonwealth Code Enforcement’s Motion to Dismiss Plaintiffs’ Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). ECF Nos. 16, 26. For the reasons stated below, Defendants Borough of Glenolden and Brian Razzi’s Motion to Dismiss Plaintiff SRA will be denied, and Defendants’ Motions to Dismiss Plaintiffs’ Complaint for failure to state a claim will be granted.

I. FACTS

The facts in this case, as alleged in the Complaint, are as follows. In 2016, the Pennsylvania Legislature enacted MCOCA to address both the non-uniformity of municipalities’ code provisions relating to occupancy permits and municipalities’ arbitrary enforcement of those code provisions. Compl. ¶ 13. MCOCA requires that municipalities issue one of three types of occupancy certificate when requested by a homeowner and specifies the types of certificates that municipalities must issue in certain situations. Id. ¶ 14. In 2019, Glenolden Borough amended its Ordinances to comply with MCOCA. Id. ¶¶ 16-18. The Ordinances require that: No person, unless otherwise excepted by Pennsylvania law or § 61-5 below, shall occupy any lot or portion of any lot, dwelling, dwelling unit, building, building unit….in the Borough of Glenolden, and no person owning any dwelling, dwelling unit, lot, building, building unit….shall lease, rent or allow such dwelling, dwelling unit, lot or any portion of such lot, building, building unit…to be occupied by another without each first making application to and obtaining from the Borough Council or its designated agent a certificate of occupancy for such dwelling, dwelling unit, lot or portion of lot, building, building unit…

Ordinance § 61-2.1A. Consistent with MCOCA, the Ordinances establish how an owner preparing to sell his or her property obtains a Use and Occupancy Certificate (“U & O Certificate”). Compl. ¶¶ 20-24. Owners of existing structures that do not have a valid use and occupancy certificate shall complete an application for use and occupancy certificate, pay the applicable fees and schedule an inspection with the Code Official or its designee.

Ordinance § 61-2.1C. The Ordinances require, after the inspection, that the Borough issue the appropriate certificate. Compl. ¶ 21. The Borough of Glenolden Borough shall issue certificates in the following manner: A. If the Borough inspection reveals no deficiencies or violations a use and occupancy certificate will be issued.

B. If the Borough inspection reveals at least one deficiency or violation, but no substantial violations, the Borough will issue a temporary use and occupancy certificate.

C. If the Borough inspection reveals at least one substantial violation, the Borough will specifically note those substantial violations on the inspection report and will issue a temporary access certificate.

D. Any deficiencies, violations or substantial violations revealed by an inspection shall be identified by the Borough, in writing, and shall accompany the certificate that is issued.

Ordinance § 61-3. Consistent with MCOCA, the Ordinances also (1) provide a time frame in which the seller (or the buyer after the purchase) must make required repairs and (2) set forth the potential penalties for failure to comply with the certificate of occupancy requirements. Compl. ¶¶ 22-24. On or about March 11, 2022, George Kiesel (the “Seller”) of 115 E. Lamont Avenue, Glenolden, PA 19036 (the “Property”) entered into an agreement for sale of the Property with a purchaser. Id. ¶ 32. Plaintiff eXp Realty represented the Seller in connection with the sale and Plaintiff eXp Realty, through its affiliated agent, applied for inspection of the Property for the purpose of obtaining a U & O Certificate. Id. ¶¶ 33-34. On April 19, 2022, the Commonwealth Code Enforcement, on behalf of Glenolden Borough, inspected the Property and noted that certain repairs were required. Id. ¶ 36. The inspection also included a requirement of re-inspection within 30 days. Id. After the inspection, Defendants did not issue any type of occupancy certificate to Plaintiff eXp Realty on behalf of the Seller even though MCOCA requires that—at a minimum— a temporary occupancy certificate be issued so that the Seller could be permitted to sell the property with the repairs to occur after the sale. Id. ¶¶ 36-37. On April 29, 2022, ten days after the inspection uncovered required repairs, the Property was sold without any U & O Certificate and without the repairs being made. Compl. ¶ 38. On May 19, 2023, Defendant Tartaglia, acting through or in conjunction with Commonwealth Code Enforcement and Glenolden Borough, filed a criminal citation against Plaintiff eXp Realty for

failing to obtain a certificate of occupancy prior to selling the Property. Id. ¶ 39. This criminal citation charges Plaintiff eXp Realty with “Transfer w/o Certificate of Occupancy” and imposes a potential fine of $256.19. Id. ¶ 39-40. The Magisterial District Court in Glenolden Borough then scheduled a hearing on the Criminal Citation for November 6, 2023. Id. ¶ 43. Plaintiffs allege that the issuance of the Criminal Citation to Plaintiff eXp Realty is in direct violation of MCOCA and attempts to extend criminal penalties for the failure to have a U & O Certificate to Plaintiff eXp Realty, which never owned real estate in Glenolden Borough. Id. ¶ 45. Plaintiffs also allege that the Borough Officials were obligated to issue a U & O Certificate under the Ordinances and MCOCA when the inspection was performed but refused to do so. Id. ¶ 49.

II. PROCEDURAL HISTORY

Plaintiffs filed their Complaint on November 3, 2023, bringing the following six claims against all Defendants: a. Count I – Declaratory Judgment, 28 U.S.C. § 2201; b. Count II – Injunctive Relief; c. Count III – Violations of 42 U.S.C. § 1983; d. Count IV – Preemption; e. Count V – Interference with Prospective Contractual Relationships; f. Count VI – Conspiracy, Violations of 42 U.S.C. § 1985 & Pennsylvania Common Law. ECF No. 1.

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EXP REALTY, LLC v. BOROUGH OF GLENOLDEN, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exp-realty-llc-v-borough-of-glenolden-paed-2024.