Articles Posted in US Court of Appeals for the Third Circuit

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A Pennsylvania municipal lien is automatic; it is perfected by filing with the local court, without notice or a hearing, where it is publicly docketed. Until filed, a municipal lien may not be enforced through a judicial sale. Municipalities can delay filing a lien indefinitely, but it is not enforceable against subsequent purchasers until filed. A municipality can petition the court for a sale. Property owners may request a hearing on the legality of a lien at any time by paying the underlying claim into the court with a petition. PGW, a public utility owned by the city, scans its billing database, identifies delinquent accounts, then sends a pre-filing letter. If full payment is not made, the system automatically files the lien and sends another notice. Landlords are not normally apprised of tenants' growing arrearages. An exception is entered if the name/address associated with an account does not match the property tax records. PGW frequently enters “exceptions,” which do not prevent arrearages from continuing to grow nor do they interrupt service but prevent the lien from being filed. Landlords who learned of thousands of dollars of liens against their properties, due to nonpayment by tenants, filed suit. The court certified a class and held that the City had violated the landlords’ due process rights. The Third Circuit reversed. Whether the lien procedures comport with due process depends on three factors: the private interest that will be affected; the risk of an erroneous deprivation and the value of other procedural safeguards in avoiding errors; and the governmental interest. Although the filing of a lien is “significant” enough to trigger due process protections, it is a relatively limited interference with the landlords’ property. None of the plaintiffs have suffered injury to their credit. Nor have the liens interfered with their ability to maintain their properties or collect rents. Risks associated with an erroneous lien are mitigated by the statute's post-deprivation remedies. View "Augustin v. City of Philadelphia" on Justia Law

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The Hayes family is a low-income family whose rent is subsidized by enhanced voucher assistance under the Housing Act of 1937, 42 U.S.C. 1437f(t) (Section 8). Because an ordinary voucher does not cover a tenant’s rent to the extent that it exceeds the applicable payment standard, and, following a valid opt-out, property owners are no longer subject to limitations on what they may charge for rent, enhanced vouchers exist to enable residents to “choose” to continue renting the “dwelling unit in which they currently reside.” The Hayes family's eligibility to receive enhanced vouchers is contingent upon their continued tenancy in a unit currently owned by Harvey. Toward the end of their most recent lease term, Harvey notified the Hayes family that he would not renew their lease. The Hayes family refused to vacate the premises, arguing that as enhanced-voucher tenants, they have an enforceable “right to remain” in their unit as long as it is offered for rental housing. The district court granted Harvey summary judgment. The Third Circuit affirmed. The Act does not obligate property owners to renew enhanced-voucher tenancies after the initial lease term. View "Hayes v. Harvey" on Justia Law

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As unclaimed property has become Delaware’s third-largest source of revenue, companies have filed lawsuits challenging the constitutionality of Delaware’s escheat regime. Plains All American Pipeline attacked the constitutionality of several provisions of the Delaware Escheats Law, which provides that a holder of “property presumed abandoned” must file a yearly report with the State Escheator in which it provides information about the property and its possible owner (Del. Code tit. 12, sects. 1142, 1143) and Delaware’s demand that it submit to an abandoned property audit. Because Plains brought suit before Delaware assessed liability based on its audit or sought a subpoena to make its audit-related document requests enforceable, the district court dismissed the suit, finding that the claims were unripe except for an equal protection claim that it dismissed for failure to state a claim. The Third Circuit reversed in part, finding an as-applied, procedural due process claim ripe, but otherwise affirmed. To establish a due process violation, all Plains must show is that it was required to submit a dispute to a self-interested party. No further factual development is needed to address the merits of the claim. View "Plains All American Pipeline LLP v. Cook" on Justia Law

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In 2012, Scott Township in Lackawanna County, Pennsylvania enacted an ordinance that authorizes officials to enter upon any property within the Township to determine the existence and location of any cemetery. The ordinance compels property owners to hold their private cemeteries open to the public during daylight hours. Knick challenged the ordinance as authorizing unrestrained searches of private property in violation of the Fourth Amendment and as taking private property without just compensation in violation of the Fifth Amendment. The Third Circuit affirmed the dismissal of the case. While the “ordinance is extraordinary and constitutionally suspect,” important justiciability considerations preclude reaching the merits. Because Knick conceded that her Fourth Amendment rights were not violated and failed to demonstrate that they imminently will be, Knick lacks standing to advance her Fourth Amendment challenge. Knick’s Fifth Amendment claims are not ripe until she has sought and been denied just compensation using Pennsylvania’s inverse condemnation procedures, as required by Supreme Court precedent. View "Knick v. Township of Scott" on Justia Law