Rosemont Taxicab Co. v. Phila. Parking Auth.
This text of 327 F. Supp. 3d 803 (Rosemont Taxicab Co. v. Phila. Parking Auth.) 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.
Opinion
Padova, District Judge.
The Philadelphia Parking Authority ("PPA") through its Taxi and Limousine Division ("TLD") routinely seizes without a warrant vehicles that are suspected of being used as taxicabs that do not have a PPA inspection sticker. Plaintiffs Rosemont Taxicab Co., Inc. ("Rosemont") and Germantown Cab Company ("GCC") filed this lawsuit alleging that the PPA's practice violates their rights under the Fourth and Fourteenth Amendments of the United States Constitution and parallel provisions of the Pennsylvania Constitution (Counts I and II). They also seek declaratory relief that a Pennsylvania statute and the PPA implementing regulations permitting warrantless seizures of taxicabs are unconstitutional "as applied" (Count III). Finally, GCC alleges state law claims for conversion (Count IV), trespass to chattels (Count V), and fraud (Count VI). Presently pending are the parties' cross motions for summary judgment based on a stipulation of facts ("Stip.").1 We conclude that the *809PPA's warrantless seizure of Plaintiffs' vehicles is prima facie unconstitutional, and the absence of pre-deprivation procedures denied Plaintiffs due process of law. We also conclude that Defendants have failed to meet their summary judgment burden to show they are entitled to their proffered affirmative defenses on Plaintiffs' constitutional claims. Finally, we conclude that, while Plaintiffs have demonstrated that there are no genuine issues of material fact and they are entitled to judgment as a matter of law on their constitutional claims, GCC cannot demonstrate the elements of its state law claims as a matter of law. Accordingly, with limited exceptions to be discussed later, we grant Plaintiffs' Motion on liability issues on Counts I, II, and III and deny Defendants' Motion on those Counts; we grant Defendants' Motion for summary judgment with regard to Counts IV, V, and VI.
I. LEGAL STANDARD
Summary judgment is appropriate "if the movant shows that there is not genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). An issue is "genuine" if "the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc.,
"[A] party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of [the record that] it believes demonstrate the absence of a genuine issue of material fact." Celotex Corp. v. Catrett,
"In evaluating the evidence, we take the facts in the light most favorable to the nonmoving party ... and draw all reasonable inferences in [their] favor." Morton Int'l, Inc. v. A.E. Staley Mfg. Co.,
II. SUMMARY JUDGMENT RECORD
GCC is a taxicab operator that holds a certificate of public convenience ("CPC") issued by the Pennsylvania Public Utility Commission ("PUC") authorizing it to provide taxicab service in parts of the City of Philadelphia and Montgomery County, Pennsylvania. (Stip. ¶ 1.) Rosemont is a *810taxicab operator that holds a CPC issued by the PUC authorizing it to provide call or demand taxicab service in parts of Delaware County and Montgomery County, Pennsylvania. (Id.
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Padova, District Judge.
The Philadelphia Parking Authority ("PPA") through its Taxi and Limousine Division ("TLD") routinely seizes without a warrant vehicles that are suspected of being used as taxicabs that do not have a PPA inspection sticker. Plaintiffs Rosemont Taxicab Co., Inc. ("Rosemont") and Germantown Cab Company ("GCC") filed this lawsuit alleging that the PPA's practice violates their rights under the Fourth and Fourteenth Amendments of the United States Constitution and parallel provisions of the Pennsylvania Constitution (Counts I and II). They also seek declaratory relief that a Pennsylvania statute and the PPA implementing regulations permitting warrantless seizures of taxicabs are unconstitutional "as applied" (Count III). Finally, GCC alleges state law claims for conversion (Count IV), trespass to chattels (Count V), and fraud (Count VI). Presently pending are the parties' cross motions for summary judgment based on a stipulation of facts ("Stip.").1 We conclude that the *809PPA's warrantless seizure of Plaintiffs' vehicles is prima facie unconstitutional, and the absence of pre-deprivation procedures denied Plaintiffs due process of law. We also conclude that Defendants have failed to meet their summary judgment burden to show they are entitled to their proffered affirmative defenses on Plaintiffs' constitutional claims. Finally, we conclude that, while Plaintiffs have demonstrated that there are no genuine issues of material fact and they are entitled to judgment as a matter of law on their constitutional claims, GCC cannot demonstrate the elements of its state law claims as a matter of law. Accordingly, with limited exceptions to be discussed later, we grant Plaintiffs' Motion on liability issues on Counts I, II, and III and deny Defendants' Motion on those Counts; we grant Defendants' Motion for summary judgment with regard to Counts IV, V, and VI.
I. LEGAL STANDARD
Summary judgment is appropriate "if the movant shows that there is not genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). An issue is "genuine" if "the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc.,
"[A] party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of [the record that] it believes demonstrate the absence of a genuine issue of material fact." Celotex Corp. v. Catrett,
"In evaluating the evidence, we take the facts in the light most favorable to the nonmoving party ... and draw all reasonable inferences in [their] favor." Morton Int'l, Inc. v. A.E. Staley Mfg. Co.,
II. SUMMARY JUDGMENT RECORD
GCC is a taxicab operator that holds a certificate of public convenience ("CPC") issued by the Pennsylvania Public Utility Commission ("PUC") authorizing it to provide taxicab service in parts of the City of Philadelphia and Montgomery County, Pennsylvania. (Stip. ¶ 1.) Rosemont is a *810taxicab operator that holds a CPC issued by the PUC authorizing it to provide call or demand taxicab service in parts of Delaware County and Montgomery County, Pennsylvania. (Id. ¶ 5.) Both companies generate revenue by leasing taxicabs to drivers. (Id. ¶ 4.) GCC's CPC provides for limited or "partial" operating rights within Philadelphia; it does not authorize "city wide" rights. (Id. ¶ 2.) Only taxicabs with medallions issued by the PPA are authorized to provide citywide service in Philadelphia. (Id. ¶ 3.)
Prior to 2004, the PUC was solely responsible for the regulation of taxicab and limousine operations throughout Pennsylvania. (Id. ¶ 6.) In Act 94 of 2004,
When the PPA assumed responsibility for regulating the Philadelphia taxicab industry in or about 2005, Section 5714 of Act 94,
After having taxicabs seized without warrant under Section 5714, Plaintiffs, along with Sawink, Inc. (another taxicab company), filed suit in the Commonwealth Court of Pennsylvania, docketed at Sawink, Inc., v. PPA, No. 84 M.D. 201 (2011) ("Sawink"), challenging the constitutionality of the PPA's impoundment of their vehicles. (Stip. ¶ 20.) On January 6, 2012, the Commonwealth Court issued a decision in favor of the petitioners in Sawink, concluding that Section 5714"does not authorize the impoundment sanction where a taxicab, certificated by the PUC, accepts a hail in Philadelphia," a decision that was ultimately affirmed by the Pennsylvania Supreme Court. Sawink, Inc. v. PPA,
On July 6, 2012, the Pennsylvania Legislature adopted Act 119 of 2012, which modified the relevant language of Section 5714 ("Act 119") following the Sawink decision. (Id. ¶ 23.) Like its predecessor, Section 5714 as amended by Act 119 (the "Current *811Impoundment Statute"), does not require the PPA to obtain a warrant before impounding a vehicle.2 (Id. ¶ 25.) Although empowered to do so, the Current Impoundment Statute likewise does not require the PPA to impound any vehicles. (Id. ¶ 26.) Vehicles impounded under the Current Impoundment Statute are not subject to civil forfeiture. (Id. ¶ 27.)
In 2014, following the Legislature's adoption of the Current Impoundment Statute, the PPA promulgated new regulations, approved by the PPA's Board on March 13, 2014 and codified at
Dennis Weldon, the PPA's General Counsel, was involved in the rule-making process for the Current Impoundment Regulations. (Id. ¶ 35.) Because it is not permitted by the statute, the Current Impoundment Regulations do not allow civil forfeiture of an impounded vehicle. (Id. ¶ 36.) Since the Current Impoundment Regulations became effective, Defendant Schmid has maintained a policy of requiring TLD Enforcement Officers to obtain his approval before proceeding with any impoundment under the Current Impoundment Regulations. (Id. ¶ 38; DSOF ¶ 2; J.App. Tab Q (August 18, 2017 Dep. of William Schmid ("Schmid Dep.") ) at 292-294, 330.)
The PPA has a written procedure entitled "Impoundment of Vehicle Equipment" that is issued to all Enforcement Officers. (DSOF ¶ 3; D.App. Tab 5; Schmid Dep. at 311-312.) The procedures applicable to the PPA's impoundment of vehicles under the Current Impoundment Regulations are set forth at
*812The PUC subjects Plaintiffs' vehicles to a number of regulations concerning equipment standards and inspections. See
The PPA's first impoundment of a vehicle operated by GCC or Rosemont under the Current Impoundment Statute and Regulations occurred on August 1, 2014. (Stip. ¶ 39.) On that date, the PPA stopped and cited G91 for allegedly providing illegal service by picking up a "hail fare" in Philadelphia. (Id. ¶¶ 39, 45.) An additional citation was also issued to the driver of G91 for operating without a valid driver certificate. (D.App. Tab 24 (N.T. Aug. 7, 2014 Impoundment Hrg.) at 6-7.) The PPA immediately seized G91 because it lacked a valid PPA inspection sticker, even though it had been inspected two days earlier by the PUC. (Stip. ¶ 46; Pl. Ex. I.) The PPA did not have a warrant for this seizure and did not provide GCC with pre-deprivation notice or an opportunity to be heard prior to seizing the vehicle. (Stip. ¶¶ 47-48.) On August 6, 2014, GCC requested a post-deprivation hearing, and an impoundment hearing was held the next day. (Id. ¶¶ 49-50.) On September 3, 2014, the hearing officer entered an order finding the impoundment to be proper and set bond for the release of the vehicle at $1,000. (Id. ¶ 51.)
GCC appealed from the Hearing Officer's order to the Philadelphia Court of Common Pleas.4 (Id. ¶ 52.) On May 14, 2015, Common Pleas Judge Nina Wright Padilla denied GCC's appeal. (Id. ¶ 53.) GCC then appealed to the Pennsylvania Commonwealth Court. (Id. ¶ 54.) In connection with GCC's appeal to Commonwealth Court, Judge Padilla issued an Opinion dated July 30, 2015. (Id. ¶ 55.) On March 1, 2016, the Commonwealth Court issued a decision denying GCC's appeal, Germantown Cab Co. v. Philadelphia Parking Authority,
The PPA has also stopped, cited, and seized without warrants GCC taxicabs G35 (Stip. ¶¶ 62-67), G9 (id. ¶¶ 68-74), and G125 *813(id. ¶¶ 87-93) and Rosemont taxicabs R30 (id. ¶¶ 75-80) and R346 (id. ¶¶ 81-86.) In each instance, the Plaintiff owner of the taxicab received no pre-deprivation notice and hearing, and the vehicle was released after the owner paid the citation with no requirement that the vehicle be safety inspected before being placed back in service. (Id. ¶¶ 62-93.)
On or about January 10, 2012, at the direction of Defendant Schmid, Defendant Marshall applied to work as a taxicab driver for GCC. (Stip. ¶ 94.) At Schmid's instruction, Marshall did not to identify himself to GCC as a PPA Enforcement Officer and did not wear any clothing that would indicate that he was a PPA employee. (Id. ¶ 95-97.) Marshall filled out an application to become a taxi driver at GCC using his real name, real contact information, real social security card and real driver's license. (Id. ¶ 98.) Marshall visited GCC several times through February 3, 2012, including attendance at a training class conducted by GCC during which Marshall and other attendees were instructed how to fabricate trip logs to conceal illegal operations and were advised that the PUC, rather than the PPA, properly regulates GCC's operations. (Id. ¶ 99; D.App. Tab 29; J.App. Tab K (Sept. 22, 2016 Deposition of Steven Marshall ("Marshall Dep.") ) at 348-75.)
After being approved as a taxicab driver by GCC, on February 4, 2012 Marshall made arrangements to work a shift operating GCC taxicab G61 and made the lease payment required by GCC to lease the vehicle for one day. (Stip. ¶ 100.) However, Marshall had no intention of ever driving G61 as a taxicab-for-hire during his shift and did not engage in any business as a taxicab driver. (Id. ¶¶ 101-02.) Instead, Marshall drove G61 to the PPA's garage at 2415 South Swanson Street in Philadelphia, where the car was inspected by a PPA mechanic. (Id. ¶ 103.) Schmid was present during the inspection. (Id. ¶ 104.) The inspection revealed multiple problems, including a non-functional airbag, a leaking break line and pinion gear, and a hole in the trunk. (D.App. Tab 29; Marshall Dep. at 348-75.) No one from GCC was notified about, or present during, the PPA's inspection of G61. (Stip. ¶ 105.) Marshall timely returned the taxicab to GCC. (Id. ¶ 106.) When he returned the vehicle, he represented to GCC that the PPA stopped him at 30th Street Station to inspect the vehicle. (Stip. ¶ 107.) The PPA did not issue any citations to GCC relating to any aspect of Marshall's activities or the inspection of G61. (Id. ¶ 108.) GCC was not aware of the Marshall undercover operation prior to conducting discovery in other *814litigation with the PPA pending before this Court. (Id. ¶ 109.)
IV. DISCUSSION
A. Claim Preclusion and Issue Preclusion
Defendants argue that Plaintiffs' constitutional claims are barred on both claim preclusion and issue preclusion grounds because the claims were raised or could have been raised in earlier litigation involving the parties. Citing the proceedings in the State Court Impoundment Action, they argue that Plaintiffs should not be permitted to relitigate the constitutionality of the Current Impoundment Statute and Regulations.7
1. Claim Preclusion
Claim preclusion or res judicata "is designed to avoid piecemeal litigation of claims arising from the same events." General Elec. Co. v. Deutz AG,
In applying the principles of claim preclusion, "we must give the same preclusive effect to the [state court] judgment ... that the courts in Pennsylvania, the state in which the judgment was entered, would give." Turner v. Crawford Square Apartments III, L.P.,
Defendants argue that claim preclusion
unquestionably applies to Germantown, which actually raised the same constitutional claims in the State Court Impoundment Action in the context of one of the same impoundments raised here: the impoundment of G-91 on August 1, 2014 (the first impoundment under the Current Impoundment Statute and Regulations). The Commonwealth Court's decision rejecting those claims is a final judgment, as the Supreme Court of Pennsylvania declined review.
(Def. Mem. at 27 (emphasis omitted).) They argue that claim preclusion applies to Rosemont as well because, "prior to commencing this action, Rosemont pled liable to TLD's citations and paid all corresponding fines and charges in connection with the impoundments of R-30" and [u]nder Pennsylvania law, a plea qualifies as a final judgment on the merits for purposes of res judicata analysis." (Id. at 28 (citing Moyer v. Allstate Ins. Co., Civ. A. No. 09-1290,
We find that claims preclusion does not apply to bar Plaintiffs' constitutional claims because there is no identity of the cause of action. The PPA hearing officer and the state courts that heard GCC's appeals were focused upon Plaintiffs' conduct in operating its taxicabs without PPA inspection stickers, while the constitutional claims GCC and Rosemont raise here focus on Defendants' conduct in conducting warrantless seizures of taxicabs found to lack inspection stickers. Moreover, this is clearly not an attempt at seriatim litigation of nearly identical claims. Whether or not GCC attempted to raise an affirmative defense in the State Court Impoundment Action, it could not have received the type of relief it and Rosemont seek here, namely an injunction and money damages arising from the unconstitutional seizure. Thus, the "same" constitutional claims could not have been raised in the State Court Impoundment Action.8 Finally, there is no identity between the elements needed to be proved in that action and the elements Plaintiffs must prove to establish warrantless seizure and due process claims. The only element at issue in the enforcement action-whether the taxicab lacked a required inspection sticker-is immaterial to whether the PPA had a constitutional obligation to obtain a warrant to seize the taxicab. Conversely, if Plaintiffs had succeeded in having their citations dismissed on constitutional grounds, Defendants would not be barred from denying that civil rights violations occurred since the elements of a Section 1983 claim would not have been thereby established. Accordingly, we conclude that there is no identity in the "operative facts" undergirding the Plaintiffs' liability on the citations and their constitutional warrantless seizure claims sufficient to make those admissions preclusive to the constitutional claims.
2. Issue Preclusion
The doctrine of issue preclusion, also known as collateral estoppel, is based upon the principle that " 'a losing litigant deserves no rematch after a defeat fairly suffered, in adversarial proceedings, on an issue identical in substance to the one he subsequently seeks to raise.' " Dici v. Pennsylvania,
Under Pennsylvania law, in order for issue preclusion to apply, five elements must be satisfied: (1) the issue is identical to one that was presented in a prior case; (2) there has been a final judgment on the merits of the issue in the prior case; (3) the party against whom the doctrine is asserted was a party in, or in privity with a party in, the prior action; (4) the party against whom the doctrine is asserted, or one in privity with the party, had a full and fair opportunity to litigate the issue in the prior proceeding; and (5) the determination in the prior proceeding was essential to the judgment. Dici,
We find that Defendants cannot demonstrate these elements as a matter of law. As we concluded with regard to claim preclusion, we conclude that Defendants have failed to establish the identity of issue, that the issue was essential to the judgment, and that there was a full and fair opportunity to litigate. Whether Plaintiffs lacked a PPA inspection sticker is not the same issue as whether the impoundment of the taxicabs was an unconstitutional seizure or a due process violation. Because the PPA did not have to affirmatively prove that the seizure was constitutional at the administrative hearing, it was not "essential" to the judgment finding Plaintiffs liable to pay a fine, and Plaintiffs thus have not had a full and fair opportunity to litigate the issue.
B. The Constitutionality of The PPA's Warrantless Seizure of Taxicabs
The parties' cross motions for summary judgment each argue that the record demonstrates as a matter of law that they are entitled to judgment on Plaintiffs' constitutional claims. Plaintiffs argue that it is undisputed that their taxicabs were seized without warrants, no exception to the warrant requirement was present and, accordingly, the seizure was per se unreasonable. Defendants argue that there are exceptions to the warrant requirement that are applicable to its actions and that the provision of post-deprivation procedures was adequate.
1. The Warrant Requirement
The Fourth Amendment protects "[t]he right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures." U.S. Const. amend. IV. The Pennsylvania Constitution contains a similar protection. Pa. Const. Art. 1, § 8. A "seizure" occurs "when there is some meaningful interference with an individual's possessory *818interests in that property." Soldal v. Cook Cnty., Ill.,
" 'In the ordinary case, the [Supreme] Court has viewed a seizure of personal property as per se unreasonable within the meaning of the Fourth Amendment unless it is accomplished pursuant to a judicial warrant issued upon probable cause and particularly describing the items to be seized.' " Brown v. Muhlenberg Twp.,
It is undisputed that Defendants seized Plaintiffs' taxicabs without a warrant and with no pre-deprivation notice and hearing. Accordingly, we find that the summary judgment establishes a prima facie violation of the Fourth and Fourteenth Amendments and the parallel provisions of the Pennsylvania Constitution.
2. Exceptions to the Warrant Requirement
Defendants argue they are entitled to summary judgment on Count I because the record shows that the PPA constitutionally exercised its impoundment authority under the "community caretaking function" doctrine permitting governmental authorities to seize property without a warrant. They also argue that the "exigent circumstances" exception applies.
a. The Community Caretaking Function Exception
The "community caretaking function," an exception to the Fourth Amendment warrant requirement first recognized by the Supreme Court in Cady v. Dombrowski,
*819Ray v. Twp. of Warren,
(1) whether the vehicle is on public or private property; (2) if on private property, whether the property owner has been consulted; (3) whether an alternative to impoundment exists (especially another person capable of driving the vehicle); (4) whether the vehicle is implicated in a crime; and (5) whether the vehicle's owner and/or driver have consented to the impoundment."
Defendants argue that the summary judgment record demonstrates that each of the "impoundable offenses" set forth in the Current Impoundment Regulations-"particularly the regulatory definition rendering an operator 'unauthorized' and its vehicles subject to impoundment if providing taxicab service without proof of inspection as required by PPA-are logically related to protecting public safety."10 (Def. Mem. at 37.) While they acknowledge that there are no reported decisions permitting the community caretaker function warrant exception to apply to the regulatory impoundment of taxicabs, (id. at 39), they argue that: (1) cases upholding the warrantless impoundment of even legally parked vehicles indicate that the exception should apply here; (2) because the commercial taxicab industry is extensively regulated, operators have a lower expectation of privacy, see New York v. Burger,
Analogizing these decisions, Defendants assert five reasons why "the heavily regulated nature of the taxicab industry as a public utility directly ties into any straightforward consideration of the factors identified in [the Tenth Circuit's decision in Sanders ]" and permit the warrantless impoundment of taxicabs upon the determination that a violation has occurred. (Def. Mem. at 41-42.) First, Defendants assert taxicab vehicles impounded by the PPA enforcement personnel are on public property, are engaged in the public utility of providing transportation for hire, and the riding public, who have no prior information regarding the condition of the vehicle, are relying on regulation to ensure their safety. Second, owners are aware of the PPA's statutory and regulatory authority to impound for enumerated violations; thus, they assert Plaintiffs could not possibly claim surprise at the fact that a taxicab vehicle without a valid inspection sticker would be impounded.11 Third, there is no alternative to impoundment in the case of an uninspected vehicle (unlike an impoundment necessitated by a driver violation, in which the Current Impoundment Regulations contemplate an owner may have an alternative driver take over the vehicle if able to make prompt arrangements). Fourth, while there is no assertion that any impounded vehicle was involved in a crime, each was by definition in violation of a regulation enacted to promote public safety. Fifth, by choosing to engage in a heavily regulated public utility, owners are aware of, and at least implicitly consent to, the fact that taxicab vehicles are subject to regulatory inspections without warrant, which may result in impoundments. Defendants argue that this consideration is particularly compelling here since the record shows that GCC opposed the Current Impoundment Regulations before they were adopted, yet continued to operate taxicab vehicles in Philadelphia without current inspection stickers even after the PPA conducted the first impoundment on August 1, 2014. (Def. Mem. at 42.)
*821Plaintiffs respond that the community caretaking function exception cannot apply to excuse the warrantless seizures because the impoundments were not for a "non-law enforcement" purpose. They assert that the PPA acts in a quasi-law enforcement capacity granted by the Pennsylvania Legislature when it employs the enforcement tool of impoundment in the event that taxicabs are observed operating in Philadelphia without a PPA inspection sticker. (Pls. Mem in Opp. to Def. Cross-Mot. ("Pls. Opp. Mem.") at 24-25.) They cite impoundment hearing testimony from a PPA enforcement officer conceding that taxicab G91 was impounded as part of an "investigation" of the taxicab's lack of an inspection sticker in violation of the Regulations. (D.App. Tab 24, N.T. Aug. 7, 2014 at 5:14-7:2.12 ) They also contend that there was no legitimate public safety issue to justify the impoundment of Plaintiffs' taxicabs without a warrant since it is undisputed that they (1) are annually safety-inspected and certified by the PUC, (2) were not involved in accidents, (3) were not impeding the flow of traffic, and (4) were not illegally parked. Rather, Plaintiffs contend, their cabs, which are deemed completely safe to operate in outside of Philadelphia by virtue of their PUC inspection, were deemed unsafe and impounded solely because they were operating in Philadelphia without a PPA inspection sticker. They argue that this makes the seizures unreasonable since there could be "no legitimate threat to public safety" from a vehicle that had been safety inspected. (Pls. Opp. Mem. at 27.)
Additionally, Plaintiffs contend that Defendants have failed to meet their summary judgment burden on the community caretaking affirmative defense to show there was a non-law enforcement basis for the impoundments since the record establishes that (1) Defendants never required Plaintiffs to remedy the supposed threat to public safety, i.e., obtain a PPA inspection sticker, before releasing the taxicab from impoundment to be put back into service, and (2) the express purpose of the impoundment statute is to secure the owner's attendance at the enforcement hearing and its payment of all fines. (Pls. Opp. Mem. at 28 (citing
Finally, applying the factors identified in Sanders,
With the exception of the seizures of G91 and R34 discussed below, we find as a matter of law that Defendants have not established that they are entitled to rely on the community caretaking function affirmative defense to excuse the warrant requirement for the seizures in this record. First, as Defendants concede, there is no case law recognizing that taxicab regulatory authorities can reasonably rely on the community caretaking function exception to engage in warrantless seizures merely because taxicab owners operate in a regulated industry. We hold that an entity's mere participation in the highly regulated taxicab industry cannot support Defendants' authority to engage in the warrantless seizures of taxicabs for a community caretaking purpose as a matter of law. The level of a property owner's expectation of privacy while engaging in a regulated activity is a separate question from whether there actually exists a community caretaking purpose upon which the warrant requirement may be excused. Since the exception is based on law enforcement's duty to ensure the safety of the public, Defendants must show as a matter of law that its seizing taxicabs was reasonably related to such a duty. We conclude that, with the exception of G91 and R34, they have failed to do so on this record.
Moreover, while Defendants argue that operating an uninspected taxicab implicates the safety of the riding public, given the parties' stipulated facts no reasonable fact finder could conclude that the Plaintiffs' taxicabs were impounded because they were unsafe. Rather, they were impounded because they lacked PPA inspection stickers while allegedly engaged in hail service in the City or otherwise operating outside their permissible geographic areas. (See Stip. ¶¶ 45-46, 62-63, 68-69, 75-76, 81-82, 87-90.) Other than for G91 and R34, there is also no assertion that the seized taxicabs were implicated in a crime, located in a dangerous area, illegally parked, involved in a traffic accident or impeded traffic, or could not be driven out of the City (because of mechanical or safety issues or because it lacked a licensed driver). Rather, the record demonstrates that each was impounded to guarantee the appearance of its owner at an enforcement hearing and as surety that any assessment would be paid.
The Current Impoundment Statute authorizes the PPA to impound a vehicle "utilized to provide call or demand service in cities of the first class" that "are in violation of regulations of the authority."
The two exceptions noted above refers to the seizures of G91 and R34. The record establishes that the operators of these vehicle were deemed ineligible at the time of the seizure to drive them out of the PPA's jurisdiction. Because Plaintiffs do not assert that another driver was available, these vehicles were properly subject to a community caretaking function seizure since they lacked an eligible driver, even though it is undisputed that the citation issued to the operator of R34 for having a suspended license was later withdrawn. Thus, we conclude that the warrantless seizures of G91 and R34 did not violate Plaintiffs' constitutional rights. We therefore grant partial summary judgment to Defendants to the extent that GCC's claims are based on the seizure of G91 and Rosemont's claims are based on the seizure of R34.
b. The Exigent Circumstances Exception
Another exception to the warrant requirement is "exigent circumstances." Coolidge v. New Hampshire,
First, the record demonstrates that Plaintiffs' taxicabs were inspected and deemed safe to operate outside the City or within Plaintiffs' designated geographic areas in the City by the PUC. (See PSOF at ¶ 1 ("None of Plaintiffs' vehicles at issue in this Litigation were placed out of service by the [PUC] at the time of their impoundment by the PPA.") (citing Gabbay Decl. ¶ 8, Gabbay-Karsenty Decl. ¶ 8); see also id. ¶¶ 2-3 (asserting that impounded taxicabs had passed PUC safety inspections).14 ) Second, Defendants did not require Plaintiffs to submit to safety inspections before releasing the vehicles; they only required that Plaintiffs pay their fines. (See Stip. ¶¶ 66-67, 73-74, 85-86.) These two facts eliminate any reliance on exigent circumstances based on safety concerns. Third, the Current Impoundment Statute does not require the PPA to impound any vehicle and does not permit forfeiture. (Stip. ¶ 26.) Thus there can be no exigent circumstances based on the owner absconding with the property. Fourth, as noted by Plaintiffs, there is evidence that an alternative to impoundment existed at the time: designating the *824vehicle as "out of service" to permit the taxicab to taken out of the City or to its designated geographic area in the City, where it could legally continue to operate by virtue of its PUC-issued CPC. This eliminates the possibility that exigent circumstances required impoundment to prevent the taxicab from continuing to troll for hail fares in prohibited areas. Finally, there is no evidence that any threat to public safety was "imminent" in a way that is analogous to other situations where the exigent circumstances exception has been accepted. Because the vehicle is returned to its owner whether or not it is "safe," we find that the exigent circumstances exception cannot apply as a matter of law. Accord Harrell v. City of New York,
We find that the decision in Harrell is indistinguishable from the situation here. In Harrell, the owners of illegal taxicabs also alleged violations of the Fourth and Fourteenth Amendments arising from defendant's warrantless seizures of unlicensed vehicles to secure payment of fines where the agency had no statutory forfeiture authority.
What [New York] cannot do, consistent with the Fourth Amendment, is summarily seize property to deter future violations from an alleged violator and hold the property as leverage to ensure payment of a penalty-if the violator is found guilty when the allegations against him are adjudicated.
3. Adequacy of Post-deprivation Process
As we stated in an earlier Opinion in this case dismissing an unrelated due process claim, " '[t]he fundamental requirement of due process is the opportunity to be heard at a meaningful time and in a meaningful manner.' " Germantown Cab Co. v. Philadelphia Parking Auth., Civ. A. No. 14-4686,
While "[t]he Supreme Court 'consistently has held that some kind of hearing is required at some time before a person is finally deprived of his property interests,' " Graham v. City of Philadelphia,
To determine "when a hearing is required (i.e., pre- or post-deprivation) and what kind of procedure is due," Nnebe,644 F.3d at 158 (citation omitted), we apply the three-prong balancing test announced by the United States Supreme Court in Mathews v. Eldridge,424 U.S. 319 , 333,96 S.Ct. 893 ,47 L.Ed.2d 18 (1976). See R. v. Dep't of Pub. Welfare,535 Pa. 440 ,636 A.2d 142 , 153 (Pa. 1994) (adopting "the Matthews [sic] methodology to assess due process claims brought under Section 1 of Article I of the Pennsylvania Constitution"). This test requires consideration of three factors: (1) " 'the private interest that will be affected by the official action,' " (2) " 'the Government's interest, including the function involved and the fiscal and administrative burdens that the additional or substitute procedural requirement would entail,' " and (3) " 'the risk of an erroneous deprivation of such interest through the procedures used, and the probable value, if any, of additional or substitute procedural safeguards.' " Biliski,574 F.3d at 220 (quoting Mathews,424 U.S. at 335 ,96 S.Ct. 893 ); see also Nnebe,644 F.3d at 158-59 (applying the Mathews balancing test to procedural due process claim involving suspension of taxicab licenses).
Germantown Cab Co.,
If a pre-deprivation hearing is required, "no amount of postdeprivation process could cure the [ ] initial failure to provide a hearing." Elsmere Park Club, L.P. v. Town of Elsmere,
In determining whether there was a necessity of quick action, the Third Circuit has held that courts should scrutinize officials' decisions very deferentially. Elsmere Park Club, L.P.,
Yet, it is important to avoid the opposite trap. That is, we cannot apply so much deference as to allow "the government [to] avoid affording due process to citizens by arbitrarily invoking emergency procedures." [ ] Accordingly, we adopt the test laid out by our colleagues in the Second Circuit: "where there is competent evidence allowing the official to reasonably believe that an emergency does in fact exist ... [,] the discretionary invocation of an emergency procedure results in a constitutional violation only where such invocation is arbitrary or amounts to an abuse of discretion."
Id. at 418 (quoting Catanzaro,
a. The Zinermon Factors
To determine whether pre- or post-deprivation notice and hearings are required, we examine (1) the necessity of quick governmental action and the (2) potential length or severity of the deprivation and likelihood of serious loss. The summary judgment record fails to support a conclusion that pre-deprivation process was not possible. Defendants maintain that a necessity for quick governmental action sufficient to justify warrantless impoundments existed because the lack of a PPA inspection created a safety risk. It is undisputed *827that Plaintiffs' taxicabs are inspected by the PUC and lawfully operate in all areas outside of the PPA's jurisdiction, as well as within the PPA's jurisdiction under defined circumstances. Thus, Defendants cannot show as a matter of law on this record that warrantless impoundments for lack of a PPA safety inspection are justified by any necessity for quick governmental action. For us to accept the necessity of quick action, we must accept that a taxicab can be "safe" one moment and "unsafe" moments later depending solely upon where in the Commonwealth it is operated. This is not a reasonable basis upon which to justify a warrantless emergency seizure. Defendants have also not shown that seizing the taxicabs as surety for the payment of fines requires quick governmental action.
While Defendants point to evidence that the potential length or severity of the deprivation and likelihood of serious loss is diminished by the requirement that a hearing be held within two days of an owner's request, they have failed to come forward with "competent evidence allowing the official to reasonably believe that an emergency does in fact exist ...." Elsmere Park Club, L.P. Plaintiffs, conversely, met their burden under Rule 56(e) to show that there is no "emergency" since their taxicabs can be legally operated outside of the PPA's jurisdiction. They have also shown that the majority of their operating territory is outside the jurisdiction of the PPA. Thus, unlike a taxicab with a PPA-issued medallion that may not be operated anywhere within the PPA's jurisdiction if it lacks an inspection sticker, Plaintiffs' taxicabs may still legally generate revenue even if not inspected by the PPA. Since the parties have also stipulated that vehicles impounded under the Current Impoundment Statute and Current Impoundment Regulations are not subject to forfeiture even if fines are not paid (see Stip. ¶¶ 27, 36), Plaintiffs have demonstrated as a matter of law that the impoundment of taxicabs creates an immediate deprivation. Because there is no basis for failing to provide pre-deprivation notice and hearing, the Zinermon factors support a conclusion that post-deprivation process is not adequate.
b. The Mathews Factors
The Mathews factors also support the conclusion that post-deprivation process is inadequate. First, Plaintiffs have shown the majority of their taxicab service is provided outside of the PPA's jurisdiction, and it is not seriously disputed that their private interest in continuing to operate their taxicabs is affected by the PPA's warrantless seizures. Second, the PPA's asserted governmental safety interest in keeping uninspected vehicles from operating is rejected for the reasons already discussed and the PPA fails to make any argument that providing pre-deprivation procedures would be overly burdensome.15
*828Finally, Plaintiffs have satisfied their burden on both prongs of the third Mathews factor. They have shown (1) through the evidence of the impact on their non-PPA jurisdiction taxicab and paratransit services that there is a risk of an erroneous deprivation arising from the lack of pre-deprivation procedures; and (2) the probable value of substitute procedural safeguards, for example placing an out-of-service designation on an allegedly offending taxicab to permit it to be taken out of the PPA's jurisdiction.
In sum, we conclude that Plaintiffs were entitled to pre-deprivation process before the PPA could seize their taxicabs, and the lack of pre-deprivation process under these circumstances is unconstitutional.
C. The State Law Claims
Defendants Schmid and Marshall argue they are entitled to summary judgment on GCC's state law claims for conversion, trespass and fraud arising from Defendant Marshall's obtaining a GCC cab for two reasons: (1) GCC voluntarily consented to leasing the cab to Marshall as part of its ordinary business activity and thereby consented to his use of the taxicab; and (2) GCC suffered no damages from Marshall's taking the cab to the PPA's inspection facility rather than using it to provide taxicab service since GCC received the daily lease rate it ordinarily charged for the use of the vehicle, and it was timely returned to GCC at the end of the day's lease period. We grant Defendants' Motion on these claims.
1. Conversion and Trespass to Chattels
Under Pennsylvania law, conversion is defined as " 'the deprivation of another's right of property in, or use or possession of, a chattel, or other interference therewith, without the owner's consent and without lawful justification.' " McKeeman v. Corestates Bank, N.A.,
The elements of trespass to chattels "are essentially the same" as conversion. QVC, Inc. v. Resultly, LLC,
We find that the conversion and trespass claims fail as a matter of law. GCC suffered no actual conversion or trespass since it received its expected fee for the term that it leased the vehicle to Marshall, and Marshall timely returned the vehicle at the end of the lease term. GCC's argument that a conversion occurred relies on its assertion that it had a legal right to be present at an inspection of its taxicab and Defendants intentionally chose to ignore that right. (Pls. Mem. at 39 (citing
2. Fraud
In order to establish a cause of action based on fraud under Pennsylvania law, a plaintiff must prove the following, by clear and convincing evidence: (1) a representation; (2) which is material to the transaction at hand; (3) made falsely, with knowledge of its falsity or recklessness as to whether it is true or false; (4) with the intent of misleading another into relying on it; (5) justifiable reliance on the misrepresentation; and (6) the resulting injury *830was proximately caused by the reliance. Gibbs v. Ernst,
Defendants argue that GCC has failed to meet its summary judgment burden because, at most, it has only shown that Marshall failed to disclose that he was a TLD Enforcement Officer and has not shown that it relied to its detriment on that omission or suffered any injury because it received exactly what it expected, namely its full lease payment. (Def. Mem. at 51.) GCC responds that Marshall misrepresented his intent to become a taxicab driver with knowledge of that falsity to gain control of the vehicle. It argues that it relied on that misrepresentation in giving him the vehicle, which was returned to it with an "out-of-service" sticker based on the inspection done outside its presence.
We conclude that GCC has failed to meet its heightened summary judgment burden on the fraud claim. Although Marshall returned the taxicab to GCC with an out-of-service sticker, which he falsely told GCC resulted in his being stopped near 30th Street Station by the PPA for an inspection, it is undisputed that the PPA did not issue any citations to GCC relating to any aspect of Marshall's activities or the inspection of the taxicab. Because GCC received the full lease payment and was not cited for any deficiencies allegedly found during the inspection, it has failed to show by clear and convincing evidence that it suffered an injury that was proximately caused by its reliance on Marshall's misrepresentation that he intended to use the taxicab as a driver or that he was subject to an on-the-street inspection.
Accordingly, we conclude that Defendants are entitled to summary judgment on GCC's state law claims.
IV. CONCLUSION
Defendants' Motion for Summary Judgment on Plaintiffs' state law claims for conversion, trespass and fraud is granted. Since Plaintiffs' claim for punitive damages is limited to those claims (see Compl. ¶¶ 241, 248, 257), summary judgment is entered in Defendants favor on punitive damages as well. Plaintiffs' Motion for Summary Judgment on liability on Count I, alleging a violation of their Fourth Amendment rights under
An appropriate order follows.
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327 F. Supp. 3d 803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosemont-taxicab-co-v-phila-parking-auth-paed-2018.