Se Pa. Transp. Auth. v. Acorn

563 A.2d 565, 128 Pa. Commw. 292
CourtCommonwealth Court of Pennsylvania
DecidedJuly 31, 1989
StatusPublished
Cited by1 cases

This text of 563 A.2d 565 (Se Pa. Transp. Auth. v. Acorn) 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
Se Pa. Transp. Auth. v. Acorn, 563 A.2d 565, 128 Pa. Commw. 292 (Pa. Ct. App. 1989).

Opinion

128 Pa. Commonwealth Ct. 292 (1989)
563 A.2d 565

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY, Appellant,
v.
ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW et al., Appellees.

Commonwealth Court of Pennsylvania.

Argued June 7, 1989.
Decided July 31, 1989.

*295 David P. Bruton, Alfred W. Putnam, Jr., Barbara J. Lipshutz, Drinker Biddle & Reath, Philadelphia, for appellant.

Irv Ackelsberg, Deborah Harris, Community Legal Services, Philadelphia, for ACORN, CBNP & CEPA.

Angel Ortiz, David Cohen, Philadelphia, for appellees.

Robert L. Martin, Lee, Martin, Green & Reiter, Bellefonte, for amicus curiae Pennsylvania Assoc. of Mun. Transp. Authorities.

Before CRUMLISH, Jr., President Judge, and DOYLE, BARRY, COLINS, PALLADINO, McGINLEY and SMITH, JJ.

McGINLEY, Judge.

The Association for Community Organizations for Reform Now (ACORN), the Committee for a Better North Philadelphia (CBNP), the Consumer Education and Protective Association (CEPA),[1] (collectively, Appellees) instituted this action on April 5, 1989, by challenging the final action of the Southeastern Pennsylvania Transportation Authority (SEPTA) raising fares on its City Transit Division. On April 7, 1989, Lucien E. Blackwell (Blackwell), Marian B. Tasco (Tasco), Augusta A. Clark (Clark), George Burrell, Jr. (Burrell), David Cohen (Cohen), Angel Ortiz (Ortiz), and James B. Tayoun (Tayoun), members of the Philadelphia *296 City Council, intervened. The Philadelphia Court of Common Pleas (court of common pleas) sustained Appellees' statutory appeal under Section 303(d)(9) of the Pennsylvania Urban Mass Transportation Law (Act 101),[2] vacated the challenged fare increases and remanded the matter to the SEPTA Board.[3] SEPTA appeals.[4]

In late February, 1989, SEPTA posted and published notice of proposed tariffs increasing the fares in various SEPTA divisions, to take effect on April 9, 1989. The tariffs included these changes in rates for City Transit riders:

1. Tokens — increased from $0.85 to $1.05, an increase of 23%;
2. Transfers — increased from $0.25 to $0.40, an increase of 60%;
3. Weekly Trans Pass — increased from $12 to $15, an increase of 25%;
4. Monthly Trans Pass — increased from $45 to $55, an increase of 22%.[5]

*297 Five hearings on the tariff proposals were held in a three day period during the week of March 27, 1989, in Bucks, Montgomery, Chester, Delaware counties and in Philadelphia. At a meeting of the SEPTA Board on April 5, 1989, the SEPTA Board approved the tariffs with one modification; the token charge was increased from $0.85 to $1.00 rather than $1.05.

The increases were stayed by order of the court of common pleas on April 7, 1989, but only insofar as they applied to SEPTA's City Transit Division. The court of common pleas on April 26, 1989, concluded that SEPTA's proposed increase on the City Transit Division was procedurally and substantively flawed. Procedurally, Judge Samuel M. Lehrer noted: an alleged refusal to permit CEPA's counsel to ask a question; a more general failure to provide a meaningful hearing; and a failure to provide CEPA with the proposed allocation of subsidies among the four divisions for fiscal 1990. Substantively, the court of common pleas concluded that SEPTA abused its discretion on the basis of Section 341 of Act 101[6] and Section 1601(a)(2) of the Congressional Urban Mass Transportation Act (federal statute), P.L. 88-365, July 9, 1964, 78 Stat. 302, 49 U.S.C.App. § 1601(a)(2).[7]

On May 8, 1989, the SEPTA Board met in a special meeting and decided to implement the City Transit increases on May 11, 1989, asserting a right to automatic supersedeas *298 under Section 303(d)(9) of Act 101. On May 9, 1989, the court of common pleas, upon application of the Appellees, vacated the purported supersedeas and enjoined the City Transit increases. On May 12, 1989, this Court affirmed the court of common pleas' order of May 9, 1989, thereby preserving the status quo pending a resolution of this appeal.

Pursuant to Section 303(d)(9) of Act 101 we are limited in our review of this action to a determination of whether the court of common pleas properly determined that SEPTA's adoption of the proposed rate increase constituted a manifest and flagrant abuse of discretion or an error of law. Consumer Education and Protective Assoc. (CEPA) v. Southeastern Transportation Authority (SEPTA), 125 Pa. Commonwealth Ct. 143, ___, 557 A.2d 1123, 1126 (1989).

SEPTA maintains that the court of common pleas erred in considering the substance of the proposed fare increase and substituting its own judgment for SEPTA's in balancing its budget with government subsidies and passenger fare revenues; and in striking down the proposed fare increase of the City Transit Division on the basis of alleged procedural flaws in the public hearings.

PAMTA submits that the court of common pleas' decision compels transportation authorities to give undue weight to the interests of low income persons and will result in extensive judicial review for every fare increase.

PROCEDURE

The court of common pleas held that SEPTA committed legal error in its conduct of the public hearings. We disagree. Section 303(d)(9) of Act 101 provides that "[p]ublic hearings shall be held prior to . . . determinations . . . which would increase fares." These hearings must be held at a "convenient, accessible location." Section 304(a)(2) of Act 101, 55 P.S. § 600.304(a)(2). Members of the public must be "afforded reasonable opportunity to comment orally and in writing concerning the actions the authority proposes to take." Section 304(a)(1) of Act 101, 55 P.S. *299 § 600.304(a)(1). The court of common pleas relied upon this Court's recent decision in CEPA v. SEPTA, in concluding that SEPTA did not comply with Act 101's requirements in conducting the public hearings. The court of common pleas found CEPA v. SEPTA instructive because this Court held that the public was entitled in advance of a fare increase hearing to examine documentation concerning the basis for the rate structure, and that such information and data is only of use within the context of a meaningful cross-examination of SEPTA officials on how the fare increases were determined. (Opinion of the court of common pleas at 5.) SEPTA distinguishes CEPA v. SEPTA on the basis that there is no complaint that SEPTA did not provide all requested information in its possession in the matter sub judice. The public was provided access to the underlying calculations and premises upon which SEPTA based the proposed fare increase. SEPTA notes also that CEPA v. SEPTA is a prospective decision and that the hearings in question took place prior to that decision. Regardless, SEPTA argues, the hearings were in full accord with the process described in CEPA v. SEPTA and Virgin Islands Hotel Association v. Virgin Islands Water and Power Authority, 465 F.2d 1272

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
563 A.2d 565, 128 Pa. Commw. 292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/se-pa-transp-auth-v-acorn-pacommwct-1989.