T.G. Bellwoar, Jr. v. PA Dept. of Banking & Securities Commission

Commonwealth Court of Pennsylvania·Decided July 21, 2026·No. 235 M.D. 2025·Unpublished·Dumas

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Thomas G. Bellwoar, Jr., : Petitioner : : No. 235 M.D. 2025 v. : : Submitted: June 16, 2026 Pennsylvania Department of Banking : and Securities Commission, : Respondent :

BEFORE: HONORABLE LORI A. DUMAS, Judge HONORABLE STELLA M. TSAI, Judge HONORABLE BONNIE BRIGANCE LEADBETTER, Senior Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY JUDGE DUMAS FILED: July 21, 2026

Thomas G. Bellwoar, Jr. (Bellwoar) has filed an amended petition for review (Amended PFR) in our original jurisdiction, seeking declaratory and injunctive relief from the Pennsylvania Department of Banking and Securities Commission (Commission) on the basis that the Commission allegedly violated the Sunshine Act1 when conducting a public meeting in May 2025. Currently before us are preliminary objections filed by the Commission. Upon review, we overrule the preliminary objections in part and sustain them in part.

1 65 Pa.C.S. §§ 701-716. I. BACKGROUND2 On May 29, 2025, the Commission held its regularly scheduled quarterly meeting. After some initial formalities, the Commission opened the floor to public comments but was informed by the Commission’s deputy chief counsel that none would be forthcoming, because no one had sought advance permission to do so, as well as because no members of the general public were currently at the meeting. A lawyer, Michael Lowe (Lowe), then appeared and sought to make a comment regarding the proceedings. The Commission’s counsel denied this request, because Lowe had failed in advance to notify the Commission of his intention to do so, as well as because counsel believed Lowe would actually be offering oral argument, rather than public comment, as Lowe was representing several parties at the hearing.3 Thereafter, the Commission proceeded through the matters listed on the meeting agenda. During the course of discussing two of those matters,4 Department of Banking and Securities (Department) attorneys announced that the Commission would be entering a non-public executive session, pursuant to Section 708(a)(4) and (a)(5) of the Sunshine Act;5 in each situation, the Commission subsequently returned

2 We draw this section’s substance largely from the factual averments Bellwoar made in his Amended PFR. See generally Am. PFR. 3 Spcifically, Lowe represented the respondents in Commission Docket No. 240032, the names of which are listed infra in footnote 4. See Prelim. Objs., ¶ 6; PFR, Ex. B at 33-34. 4 These matters were, respectively, an executive session for a litigation update and discussion of Ethos Capital Management, Inc. Steven Toto, Docket No. 230022 (SEC-OSC); and an executive session for discussion of TitleMax of Delaware, Inc., TitleMax of Ohio, Inc., TitleMax of Virginia, Inc., TitleMax of South Carolina, Inc., TitleMax Funding, Inc., TMX Finance LLC, TMX Finance Corporate Services, Inc., CCFI Companies, LLC and All Successors or Predecessors in Interest, Affiliates, Subsidiaries, or Parent Companies, However Named, Docket No. 240032 (BNK-OSC). 5 68 Pa.C.S. § 708(a)(4)-(a)(5).

2 to the public hearing, announced its intended disposition of the matter, and then unanimously voted to approve that disposition.6 On July 17, 2025, Bellwoar submitted a Right-To-Know Law7 request to the Commission, through which he sought information regarding the Commission’s disposition of matters that it had addressed at the hearings it had held beginning on August 1, 2017, through the date of his request. In response, the Commission provided Bellwoar with records that showed that the Commission had issued 46 decisions during that time period. The records also showed that all these decisions had been unanimous, as well as that the Commission had issued nearly all of the decisions after returning from a non-public executive session that had been initiated by a Commission attorney. In Bellwoar’s view, this information indicated that the executive sessions were a “sham” that were “aimed at either concealing the Department lawyers’ improper control over the Commission or, worse, from shielding the public from observing its public officials’ lack of competence with respect to the sophisticated matters being decided by them.” Am. PFR, ¶ 47. Accordingly, Bellwoar filed the instant, six-count action with our Court. Therein, he asserts that the Commission8 committed a litany of Sunshine Act violations through its handling of the May 29, 2025 meeting; requests declaratory and injunctive relief that confirms those assertions, declaring the Commission’s actions at the meeting to be void ab initio and enjoining the Commission from committing future Sunshine Act violations; and seeks an award of costs and fees. In

6 The Commission first voted to resolve the Ethos Capital matter via a consent agreement and order, and subsequently voted not to take any action regarding an administrative appeal that had been filed in the TitleMax matter. 7 Act of February 14, 2008, P.L. 6, 65 P.S. §§ 67.101-67.3104. 8 Bellwoar names the Commission as the sole respondent in this matter’s caption, but then states in the body of his Amended PFR that he is also suing the Commission’s individual commissioners in their official capacities.

3 response, the Commission has filed preliminary objections that are the subject of this opinion. II. DISCUSSION We reorder and summarize the Commission’s preliminary objections as follows.9 First, the Commission contends that Bellwoar lacks standing to pursue this matter based upon harm allegedly suffered by Lowe. Second, the Commission relatedly states that Bellwoar has failed to assert that the Commission’s handling of the May 29, 2025 meeting caused harm sufficiently severe to warrant invalidation of the dispositions issued at the meeting. Third, the Commission maintains that Bellwoar has failed to plead a viable Sunshine Act claim in any of the Amended PFR’s counts, because (a) regarding Count I, the meeting was open to the general

9 The following standards are relevant: In ruling on preliminary objections, this Court must “accept as true all well-pleaded material allegations in the petition for review and any reasonable inferences that [it] may draw from the averments.” Highley v. Dep’t of Transp., 195 A.3d 1078, 1082 (Pa. Cmwlth. 2018). However, we are “not bound by legal conclusions, unwarranted inferences from facts, argumentative allegations, or expressions of opinion encompassed in the petition for review.” Id. This Court should sustain preliminary objections only where “the law makes clear that the petitioner cannot succeed on his claim.” Id. at 1083. “[W]here any doubt exists as to whether the preliminary objections should be sustained, the doubt must be resolved in favor of overruling the preliminary objections.” Pa. State Lodge, Fraternal Ord. of Police v. Dep’t of Conservation & Nat. Res., 909 A.2d 413, 416 (Pa. Cmwlth. 2006). M.T. v. Pa. State Police, 298 A.3d 466, 469 n.5 (Pa. Cmwlth. 2023) (cleaned up). Additionally, the Commission has demurred to Bellwoar’s claims. See Pa.R.Civ.P. 1028(a)(4). A preliminary objection in the nature of a demurrer admits all well-pleaded facts and all inferences reasonably derived therefrom. See Torres v. Beard, 997 A.2d 1242, 1245 (Pa. Cmwlth. 2010). The demurrer tests the legal sufficiency of the pleadings and “will be sustained only in cases where the pleader has clearly failed to state a claim for which relief can be granted.” Id.

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