Mid-Centre County Authority v. Township of Boggs

384 A.2d 1008, 34 Pa. Commw. 494, 1978 Pa. Commw. LEXIS 965
CourtCommonwealth Court of Pennsylvania
DecidedMarch 29, 1978
DocketAppeals, Nos. 1714 and 1720 C.D. 1976
StatusPublished
Cited by28 cases

This text of 384 A.2d 1008 (Mid-Centre County Authority v. Township of Boggs) 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
Mid-Centre County Authority v. Township of Boggs, 384 A.2d 1008, 34 Pa. Commw. 494, 1978 Pa. Commw. LEXIS 965 (Pa. Ct. App. 1978).

Opinion

Opinion by

Judge Blatt,

This is an appeal from an order of the Court of Common Pleas of Centre County which granted proceedings on a declaratory judgment petition filed by the Mid-Centre Authority (Plaintiff-Authority).

The Plaintiff-Authority is a joint municipal authority organized in 1969 by Boggs Township and Milesburg Borough for the purpose of providing regional sewerage service. In 1970, it completed an [496]*496engineering design for the proposed regional system but completion has been delayed for various reasons by state and federal regulatory authorities. Now, however, the time has come for securing construction bids, but the Plaintiff-Authority cannot proceed because of intervening agreements consummated between Boggs Township (Township), the Boggs Township Authority (Township Authority) and a land developer, the Interstate Travellers Service, Inc., also known as Tri-County Oil Company, Inc. (ITS).

These intervening agreements resulted from the adoption of a resolution by the Township Authority on September 15, 1971, which granted permission to ITS to construct a temporary, interim sewerage treatment plant to be abandoned and conveyed to the Township Authority when the Plaintiff-Authority was ready to provide the proposed regional service. This plant was, of course, subject to approval and regulation by the Pennsylvania Department of Environmental Resources (DER). On October 10, 1973, an agreement was consummated between the Township Authority and ITS which provided that ITS would construct its interim plant, which would later be sold at cost to the Township Authority, and another agreement was made on October 7, 1975 providing that ITS convey the interim plant to the Township Authority for $250,000. The plant was then leased to the Township under an agreement of the same date. In June of 1976, DER indicated that although the interim ITS facility had been approved in order to allow development in the township to proceed, it thought that the Plaintiff-Authority project should be constructed at the earliest possible date because the ITS plan was not a viable alternative to the necessary comprehensive regional wastewater management plan. In July of 1976, therefore, the Town[497]*497ship adopted a resolution to join with the Plaintiff - Authority for the creation of the regional sewerage treatment facility but it required that the Plaintiff-Authority purchase the township sewer plant, the interim plant built by ITS, for not less than $220,000, after which the Township would adopt the necessary ordinances authorizing the Plaintiff-Authority to proceed.

The consulting engineers for the Plaintiff-Authority have now concluded that it is not economically feasible or sound from an engineering point of view to utilize the interim plant and system and have advised that it should be abandoned when the permanent system is completed. The Plaintiff-Authority is ready to secure construction bids but it cannot do so because of the conditions imposed. It has, therefore, filed a petition under the Uniform Declaratory Judgments Act1 (Act) seeking to determine the rights, status and legal obligations of the Township, the Township Authority and ITS under their various agreements concerning the interim plant.

In determining the appropriateness of a declaratory judgment action, a threshold decision must be made as to whether or not the essential elements indicated in Section 6 of the Act are present: i.e., that

(1) an actual controversy exists between contending parties, or (2) where the court is satisfied that antagonistic claims are present between the parties involved which indicate imminent and inevitable litigation, or (3) where in any such case the court is satisfied that a party asserts a legal relation, status, right, or privilege in which he has a concrete interest and that there is a challenge or denial of such [498]*498asserted relation, status, right, or privilege by an adversary party . . . and the court is satisfied also that a declaratory judgment or decree will serve to terminate the uncertainty or controversy giving rise to the proceeding.

12 P.S. §836.

The court below held that there was a controversy here, that the claims are such that, if not decided, they will without question give rise to further litigation, that the legality of the agreement between the defendants must be determined and, that the proceeding in the form of a declaratory judgment was, therefore, a proper one. The defendants maintain that the lower court abused its discretion in exercising jurisdiction over this proceeding because: the Plaintiff-Authority is not a “person interested” within the meaning of the Act, because there is no “controversy,” and that, even if there is a controversy here, the action would not settle all the controversies among the parties, because several state and federal regulatory agencies are indispensable parties who have not been joined in this proceeding, and because there are other available statutory remedies. The Plaintiff-Authority maintains on the other hand that it has an interest entitling it to bring the declaratory judgment petition, citing Section 2 of the Act:

Any person interested under a . . . written contract. . . whose rights, status, or other legal relations are affected by a statute, municipal ordinance, contract or franchise, may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract or franchise and obtain a declaration of rights, status, or other legal relations thereunder.

12 P.S. §832.

[499]*499Although the Plaintiff-Authority is not a party to the agreement between the Township Authority and ITS relative to the construction and acquisition of the interim plant, it maintains that the agreement does indeed affect its rights and status, because the Township and the Township Authority rely on that agreement to impose the condition requiring the Plaintiff-Authority to purchase the interim plant.

We believe that the interest cited by the Plaintiff - Authority is more than a remote or speculative interest, and is an interest peculiar to the Plaintiff-Authority. We also believe, therefore, that it has an interest entitling it to bring the instant action. See Kaufman v. Osser, 441 Pa. 150, 271 A.2d 236 (1970). As in the case of White Oak Borough Authority v. McKeesport, 379 Pa. 266, 108 A.2d 760 (1954), where the White Oak Authority sought a clarification of rights under an agreement between the City of Mc-Keesport and the Township of Versailles, and our Superior Court held that a suit in equity should be dismissed because there was a proper and adequate remedy at law in the form of a declaratory judgment, we believe that resort to the Declaratory Judgment Act is proper here.

The defendants argue that a “present controversy” does not exist because actions are involved which may or may not be taken in the future. They cite as an example that the Plaintiff-Authority has not yet established the costs of the projected regional service and that the Township therefore cannot yet approve its construction. On a similar issue, our Supreme Court has said:

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Bluebook (online)
384 A.2d 1008, 34 Pa. Commw. 494, 1978 Pa. Commw. LEXIS 965, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-centre-county-authority-v-township-of-boggs-pacommwct-1978.