PEET v. BOARD OF SUPERVISORS OF NEW HANOVER TOWNSHIP

CourtDistrict Court, E.D. Pennsylvania
DecidedOctober 29, 2021
Docket2:21-cv-02696
StatusUnknown

This text of PEET v. BOARD OF SUPERVISORS OF NEW HANOVER TOWNSHIP (PEET v. BOARD OF SUPERVISORS OF NEW HANOVER TOWNSHIP) 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
PEET v. BOARD OF SUPERVISORS OF NEW HANOVER TOWNSHIP, (E.D. Pa. 2021).

Opinion

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

MARIA PEET, ET AL. : : v. : CIVIL ACTION NO. 21-2696 : BOARD OF SUPERVISORS OF NEW : HANOVER TOWNSHIP :

McHugh, J. October 29, 2021

MEMORANDUM

This case arises out of a land dispute between Plaintiffs Maria Peet and James Holl and Defendant New Hanover Township over ownership of a road running through Plaintiffs’ property. Litigation over the dispute has been ongoing in the Pennsylvania Court of Common Pleas of Montgomery County for more than eighteen months before this case was filed. The present action asserts a claim for compensation under the Takings Clause of the United States Constitution, mirroring the damages claimed in the underlying state action to quiet title. Necessarily, the Plaintiffs’ success here depends on whether they have rights in the underlying property. Defendant New Hanover has moved the Court to abstain from exercising jurisdiction over the federal action under the Colorado River doctrine.1 For the reasons set forth below, I will grant Defendant’s motion and stay these proceedings pending resolution of the cases in the Court of Common Pleas. I. Standard of Review The well-established standard elucidated in Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir. 2009) governs motions to dismiss under Fed. R. Civ. P. 12(b)(6).2

1 The exercise of jurisdiction precedes a federal district court’s capacity to rule on the merits. See Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 583-584 (1999). Because I find that Colorado River applies to this case, I will not address Defendant’s argument that Plaintiffs’ claim fails as a matter of law. 2 Defendant New Hanover Township briefed its Colorado River abstention argument under both 12(b)(6) and 12(b)(1) standards of review. The law is unclear on whether subject matter jurisdiction II. Procedural Posture Litigation in this case began in January 2019 when Plaintiffs Maria Peet and James Holl brought two separate actions against Defendant New Hanover Township in the Pennsylvania Court of Common Pleas of Montgomery County. The first was a Petition for Preliminary Injunction, No. 2019-01486, and the second a Complaint in Quiet Title, No. 2019-01908.3 Both actions assert

the Plaintiffs’ ownership interests in the property at 431 E. Moyer Road, Pottstown, PA 19464, and both actions allege that Plaintiffs were injured by New Hanover’s treatment of a road that crosses their property as a public road. As to relief, the preliminary injunction sought to prevent

challenges under abstention doctrines are more appropriately brought under Rule 12(b)(6) or Rule 12(b)(1). See Heritage Farms, Inc. v. Solebury Twp., 671 F.2d 743, 745 (3d Cir. 1982) (summarily characterizing dismissal on abstention grounds as “in the nature of a dismissal under Fed. R. Civ. P. 12(b)(6)”); 5B Wright & Miller, Fed. Prac. & Proc. Civ. § 1350 (3d ed. 2004) (nothing that “the scope of Rule 12(b)(1) is flexible, often serving as a procedural vehicle for raising various residual defenses” including abstention). The use of Rule 12(b)(1) is further complicated by the rule’s bifurcated standard of facial and factual challenges— depending on whether the sufficiency of the pleadings or their factual premises are being challenged for jurisdictional purposes—which can’t be neatly applied to Colorado River challenges which often occur before discovery and put at issue procedural facts of related state court proceedings, rather than the legal claims themselves or their factual predicates. See Const. Party of Pennsylvania v. Aichele, 757 F.3d 347, 358 (3d Cir. 2014) (only permitting “factual” challenges to “look beyond the pleadings to ascertain the facts,” but limiting “factual” challenges to instances where the defendant has “filed [an] answer to the Complaint or otherwise presented competing facts.”); Beres v. Vill. of Huntley, Ill., 824 F. Supp. 763, 766 (N.D. Ill. 1992) (“[A] motion to dismiss for lack of subject matter jurisdiction under Rule 12(b)(1) based on abstention does not fit into the two types of jurisdictional attacks generally raised under Rule 12(b)(1), because the challenge is not to either the facial insufficiency of the complaint nor to the factual basis pleaded in the complaint. The rationale for abstention is based on principles of comity and federalism.”). I will therefore follow the only precedential guidance I can identify—the Third Circuit’s opinion in Heritage Farms—and decide the pending motion under the standard of Rule 12(b)(6). 671 F.2d 7 at 745. Under this standard, I “must accept all of the complaint’s well-pleaded facts as true, but [I] may disregard any legal conclusions.” Fowler v. UPMC Shadyside, 578 F.3d 203, 210-11 (3d Cir. 2009). Notably, under Rule 12(b)(6) I may consider the related state court proceedings as matters subject to judicial notice. See Tellabs, Inc. v. Makor Issues & Rts., Ltd., 551 U.S. 308, 322 (2007); Buck v. Hampton Twp. Sch. Dist., 452 F.3d 256, 260 (3d Cir. 2006) (noting that the district court may consider “matters incorporated by reference or integral to the claim, items subject to judicial notice, matters of public record, orders, and items appearing in the record of the case”) (quoting 5B Wright & Miller, Fed. Prac. & Proc. § 1357 (3d. 2004)). Under 12(b)(6) the burden of persuasion rests and remains with the defendant and does not shift to the plaintiff to prove jurisdiction once challenged as it does under 12(b)(1). See Davis v. Wells Fargo, 824 F.3d 333, 348-349 (3d Cir. 2016). 3 The Complaint in Quiet Title also included a neighbor, William Bailey, as a defendant. New Hanover from conveying the property to any third parties. The parties stipulated to a dismissal of that action. The quiet title action seeks both a declaration as to Plaintiffs’ ownership interests and monetary damages related to New Hanover’s incursion into their alleged property. The quiet title action is ongoing. There have been several rounds of preliminary objections and

amendments to the complaint. The most recent complaint is the second amended complaint (“State Complaint”), filed in December 2020. In September 2021, the state court struck New Hanover’s preliminary objections and ordered New Hanover to answer the State Complaint. The pending case in this Court was filed in June 2021 when preliminary objections in the state action were pending. It presents a single claim seeking compensation for New Hanover’s alleged taking of the same property in violation of the Fifth Amendment of the U.S. Constitution. ECF 1, at 7-8. III. Discussion Colorado River abstention requires a two-step inquiry to determine whether such prudential factors exist to overcome “the virtually unflagging obligation of the federal courts to exercise the jurisdiction given them.” Colorado River Water Conservation Dist. v. United States,

424 U.S. 800, 817 (1976). First, I must determine whether the state and federal actions are parallel. See Nationwide Mut. Fire Ins. Co. v. George V. Hamilton, Inc., 571 F.3d 299

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Bluebook (online)
PEET v. BOARD OF SUPERVISORS OF NEW HANOVER TOWNSHIP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peet-v-board-of-supervisors-of-new-hanover-township-paed-2021.