Philadelphia Council of Property Owners v. City of Philadelphia

49 Pa. D. & C.2d 245, 1969 Pa. Dist. & Cnty. Dec. LEXIS 138
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedSeptember 30, 1969
Docketno. 1152
StatusPublished

This text of 49 Pa. D. & C.2d 245 (Philadelphia Council of Property Owners v. City of Philadelphia) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Philadelphia Council of Property Owners v. City of Philadelphia, 49 Pa. D. & C.2d 245, 1969 Pa. Dist. & Cnty. Dec. LEXIS 138 (Pa. Super. Ct. 1969).

Opinion

SLOANE, J.,

This is an action by Philadelphia Council of Property Owners, an unincorporated association of real estate owners, seeking an injunction against the Department of Licenses and Inspections to prohibit the use of a “point score” system in the administration of section 7-506 of the Philadel[246]*246phia Housing Code (1954 Ordinance, P-516). Section 7-506 enables the Department of Licenses and Inspections to declare dwellings unfit for human habitation whenever it finds that a “dwelling constitutes a serious hazard to the health or safety of the occupants or to the public because it is dilapidated, insanitary, vermin-infested, or lacking in the facilities and equipment required by this Title. . . .” Under 35 PS §1700-1, when a budding is declared unfit for human habitation, the inhabitants of the building may pay the rent into an escrow account which is to be paid to the landlord only when the dwelling is certified as fit for human habitation. Under section 7-506(3) any person aggrieved by the declaration of unfitness may appeal to the board as provided in section 7-504.

Section 7-504 provides that when the department discovers a violation of the Housing Code, the violator is notified and has 30 days to correct the defect. Any person aggrieved by a decision or action of the board may appeal to the Board of Licenses and Inspections Review. This appeal is to be filed within 10 days of receiving notice of a decision or action by the board and an appeal stays the requirement of compliance with the order.

The complaint in equity alleges that the past practice of the department was to issue a notice of violations (section 7-504) to the owner if an inspection revealed violations which aggregated 80 points or more. The complaint further alleges that the department presently declares dwellings unfit for human habitation (section 7-506) upon inspection and a total point score of 42 to 60 points. Once the building is condemned, the tenants are notified of their rights under 35 PS §1700-1, and the owner is notified of the condemnation.

Plaintiffs contend (1) that the “point score” system is arbitrary, without uniform standards; (2) that the [247]*247decisions of the inspectors are arbitrary, unreasonable and confiscatory; (3) that the procedure for declaring dwellings unfit for human habitation denies plaintiffs their right to appeal to the review board, and (4) that the regulation deprives petitioners of property without due process of law.

Plaintiffs seek a declaration that the regulations are unconstitutional, an injunction against the department and its employes “from exercising any power conferred upon them by the City Home Rule Charter”, an injunction against the City Solicitor, Commissioner of the Department of Licenses and Inspections.

In response, defendants have filed preliminary objections alleging that plaintiffs have failed to state a claim upon which relief may be granted because (1) they have an adequate remedy at law through the exercise of administrative remedies in every instance in which the department issues a notice of violation; (2) because the plaintiffs have not averred that they have exhausted their administrative remedies. Defendants further allege (3) that the complaint in equity is vague in that it does not refer to specific property and it does not say which portions of the Philadelphia Code the point score system violates. Defendants also raise the issues of (4) governmental immunity and (5) failure to comply with the requirements for bringing a class action. I overrule the objections.

I. ADEQUATE REMEDY AT LAW.

Defendants argue that plaintiffs have an adequate remedy at law, because in every instance in which the department has or will issue a notice of a violation there is an administrative appeal. This argument ignores the contents of plaintiffs’ complaint. The complaint, in part, challenges the validity of the existing procedure within the Department of Licenses and Inspections.

[248]*248As I read the complaint, it alleges that the owners lose money as soon as a building is declared unfit for human habitation. It is their contention that unlike the section 7-504 procedure, where an appeal stays the effect of the department’s order, the section 7-506 procedure causes them to lose rent money while the appeal is pending because of the operation of 35 PS §1700-1. It is this very procedure which is attacked. The question of the “adequacy” of the administrative procedure in protecting plaintiffs’ rights is the very subject of this litigation. Therefore, with respect to the claims that the existing procedures deny the right of appeal and that they deprive plaintiffs of property without due process of law, petitioners have no adequate remedy at law. The charges of arbitrariness are charges which attack the system itself and an appeal through the system does not provide an adequate remedy.

II. EXHAUSTION OF ADMINISTRATIVE REMEDIES.

The exhaustion doctrine is closely related to the concept of an adequate remedy at law, for, if a claimant has other adequate remedies, he should be compelled to exhaust these before turning to the courts. In order for a remedy to be adequate, it must be available more or less immediately and it must substantially protect petitioner’s claim of right: Jaffe, The Exhaustion of Administrative Remedies, 12 Buffalo L. Rev. 327, 328 (1963). And, as Judge Magruder has pointed out: “It seems to us that there has been some confusion as to the application to these cases of the doctrine requiring exhaustion of administrative remedies. This doctrine had its origin in a discretionary rule adopted by courts of equity to the effect that a petitioner will be denied equitable relief when he has failed to pursue an available administrative remedy [249]*249by which he might obtain the same relief’: Smith v. United States, 199 F. 2d 377, 381 (1st Cir., 1952).

Professor Jaffe has remarked on this very situation:

“The exhaustion rule comes into effect only if the remedy — whether administrative or judicial does not matter — is adequate to protect the asserted claim. It is often the situation, for example, when the validity of a regulation is in question that there is no administrative procedure immediately available for testing its validity”: 12 Buffalo L. Rev. at 329.

In this case, plaintiffs claim that the administrative system is arbitrary, invalid and unconstitutional. There is no channel in the Department of Licenses and Inspections in which this claim can be heard. There is no remedy which is adequate to protect the asserted claim or which might grant the same relief as a court. Petitioners cannot be required to exhaust nonexistent remedies. If there are no appropriate means of review within the administrative system, then the doctrine of exhaustion of administrative remedies has no applicability.

The only reason for requiring the owners here to go through the administrative system would be that the review board may reverse the initial determination that the buildings are unfit for human habitation, mooting the case. But this would subject plaintiffs to a system whose constitutionality they challenge and the combined effect of section 7-506 of the Housing Code with 35 PS §1700-1 will continue to deprive them of rent moneys. It is this deprivation which they contend is in violation of the due process clause.

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Related

Smith v. United States
199 F.2d 377 (First Circuit, 1952)
Downing v. Erie City School District
61 A.2d 133 (Supreme Court of Pennsylvania, 1948)
Western Pennsylvania Hospital v. Lichliter
17 A.2d 206 (Supreme Court of Pennsylvania, 1940)

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Bluebook (online)
49 Pa. D. & C.2d 245, 1969 Pa. Dist. & Cnty. Dec. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philadelphia-council-of-property-owners-v-city-of-philadelphia-pactcomplphilad-1969.