Fr & S, Inc. v. Commonwealth

573 A.2d 241, 132 Pa. Commw. 422, 1990 Pa. Commw. LEXIS 179
CourtCommonwealth Court of Pennsylvania
DecidedMarch 15, 1990
DocketNos. 3044 C.D.1986 and 1667 C.D.1987
StatusPublished
Cited by2 cases

This text of 573 A.2d 241 (Fr & S, Inc. v. Commonwealth) 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
Fr & S, Inc. v. Commonwealth, 573 A.2d 241, 132 Pa. Commw. 422, 1990 Pa. Commw. LEXIS 179 (Pa. Ct. App. 1990).

Opinion

CRAIG, Judge.

FR & S, Inc., owner of a landfill in Berks County, has appealed a decision of the Environmental Hearing Board (EHB) issued July 14, 1989, which sustained an action of the Pennsylvania Department of Environmental Resources (DER) denying FR & S’ application for a permit to operate the landfill under the Solid Waste Management Act.1

The issues, in general terms, are twofold:

1. Where DER in 1979 approved a 1978 permit application of FR & S, received in 1980 a collateral bond relating to that approval for the years 1981-1983, allowed landfill operation by FR & S in the period 1980-1983, but issued a denial of the 1979 application by letter dated April 11, 1983, is FR & S now entitled to de jure issuance of that permit on the basis of legal entitlement, or on the basis of an estoppel barring further denial?

2. Is FR & S now entitled to a permit to operate the landfill on the basis of recent EHB findings affirming the technical compliance of the site and on the basis that replacement management of FR & S has capacity for proper operation, disassociated from the deficient acts of previous management?

History of the Litigation

This landfill has been the subject of litigation in this court, between FR & S and DER, since 1978, when, at 2252 C.D.1978, this court, partly on the basis of a 1977 DER consent order and partly on the basis of new evidence, issued an order to avoid pollution threats and prescribed a permit application and inspection process.

After FR & S had operated the.landfill during the 1980-83 period and FR & S had appealed DER’s denial of April 11, 1983 to the Environmental Hearing Board, operation of the landfill continued under supersedeas until halted by the EHB in August 1984, after which further action in this [425]*425court resulted in FR & S being ordered to close the landfill in February 1985 for noncompliance with 1984 court orders as well as the 1984 EHB directions.

FR & S’ EHB appeal, from the April 1983 denial, proceeded through thirty-nine days of hearing before an examiner, but after conclusion of those hearings in August of 1984, the spring of 1987 came without any decision by the EHB. In FR & S, Inc. v. Pennsylvania Department of Environmental Resources, 104 Pa.Commonwealth Ct. 647, 522 A.2d 1190 (1987), aff'd, 522 Pa. 114, 560 A.2d 128 (1989) (FR & S I) , this court gave initial procedural approval to the use of mandamus by FR & S to compel the EHB to issue a decision which had not been forthcoming for 21/2 years.

Although the EHB appealed this court’s order in FR & S I, that board nevertheless, without waiting for resolution of the appeal or completion of the mandamus case, proceeded to issue a decision in June of 1987, denying relief to FR & S. Former EHB member Anthony Mazullo, who had presided over the reception of evidence at the hearings, had drafted a decision, but that decision was never issued, and Mr. Mazullo resigned from the board before the issuance of the June 1987 decision.

On appeal of that June 1987 decision of the EHB, this court, in FR & S v. Pennsylvania Department of Environmental Resources, 113 Pa.Commonwealth Ct. 576, 537 A.2d 957 (1988), aff'd, 522 Pa. 114, 560 A.2d 128 (1989) (FR & S II) , vacated the EHB’s June 1987 decision on account of bias and denial of due process, and remanded the case to the EHB for a new decision on the existing record, without the participation of the two board members who had issued that 1987 decision.

When this court, pursuant to FR & S II, remanded the case to the EHB for a new adjudication, the EHB had one new member who had not participated in the decision rejected by the courts, and that new member proceeded expeditiously to issue a thorough new adjudication on July 14, [426]*4261989.2

Legal Standards as to Proof and Findings

Of course, FR & S had the burden of proof before the EHB with respect to the facts.

With respect to this court’s scope of review over the EHB’s decision, the court must affirm the adjudication unless it is in violation of constitutional rights, not in accordance with law, or unless “any finding of fact made by the agency and necessary to support its adjudication is not supported by substantial evidence.” 2 Pa.C.S. § 704. That substantial evidence test as to findings of fact prevails here, where both sides have presented evidence. Estate of McGovern v. State Employees’ Retirement Board, 512 Pa. 377, 517 A.2d 523 (1986). Kirkwood v. Unemployment Compensation Board of Review, 106 Pa. Commonwealth Ct. 92, 525 A.2d 841 (1987).

Thus, the standard here is not the “capricious disregard” standard suggested by DER in its brief.

In Russell v. Workmen’s Compensation Appeal Board, 121 Pa.Commonwealth Ct. 436, 440-41, 550 A.2d 1364, 1366 (1988), this court explained that

the ‘capricious disregard’ test is the appropriate standard to apply ... where the burdened party is the only party to present evidence and does not prevail before the agency. In all matters, however, where both parties present evidence, the agency’s determination will be reviewed under the ‘substantial evidence’ test as indicated in McGovern.

Farquhar v. Workmen’s Compensation Appeal Board, 515 Pa. 315, 528 A.2d 580 (1987), where only the appellant [427]*427claimant had presented evidence, provides the Supreme Court’s confirmation that the capricious disregard standard is to be used in reviewing a record in that posture.

1. The 1983 Permit Approval, Non-issuance and Denial

The EHB adjudication here under review contains findings as to the history of FR & S’ permit applications, permits and denials which are lucid and well supported by the record. In 1970, the Pennsylvania Department of Health, DER’s predecessor in these matters, issued a permit to FR & S authorizing it to operate a sanitary landfill until the end of 1970. After that permit expired, FR & S continued to operate the landfill, and was allowed to do so, while it was attempting to satisfy departmental requirements. In 1977, FR & S and DER entered into a consent order as to specific operational actions, with FR & S being required to submit a new permit application by February 1, 1978.

After FR & S timely submitted that application, DER listed deficiencies in it and finally denied the application in September of 1978.

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Bluebook (online)
573 A.2d 241, 132 Pa. Commw. 422, 1990 Pa. Commw. LEXIS 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fr-s-inc-v-commonwealth-pacommwct-1990.