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HILLCREST SCHOOL v. CASEY (05/23/72)

decided: May 23, 1972.

HILLCREST SCHOOL, INC., ET AL.
v.
CASEY



Original jurisdiction in case of Hillcrest Schools, Inc., John Reilly and Letitia Reilly v. Robert P. Casey.

COUNSEL

Carroll F. Purdy, with him Metzger, Hafer, Keefer, Thomas and Wood, for plaintiffs.

William H. Smith, Chief Counsel, with him Thomas P. Kennedy, Deputy Counsel, for defendant.

President Judge Bowman and Judges Crumlish, Jr., Kramer, Wilkinson, Jr., Mencer, Rogers and Blatt. Opinion by Judge Kramer.

Author: Kramer

[5 Pa. Commw. 626 Page 627]

This matter comes within the original jurisdiction of this Court. Suit was commenced by the filing of a Complaint in Equity by Hillcrest School, Inc., John Reilly and Letitia Reilly (plaintiffs) seeking an injunction against Robert P. Casey, the Auditor General of the Commonwealth of Pennsylvania, (Auditor General) to enjoin him from auditing the plaintiffs' financial affairs, to return certain records to the plaintiffs and to restrain him from making public statements concerning information gained from an audit and investigation of the plaintiffs. The Complaint was filed on October 6, 1971.

On November 19, 1971, after hearing before this writer, an Application for a Preliminary Injunction was denied.

[5 Pa. Commw. 626 Page 628]

On December 29, 1971, the parties entered into a Stipulation of Facts which, together with the notes of testimony and exhibits presented at the preliminary injunction hearing, constitute the record in this case.

We adopt the Stipulation of Facts presented by the parties as the findings of fact of this Court for this determination. They are as follows:

"1. The Plaintiff, Hillcrest School, Inc., is a Pennsylvania business corporation having its principal place of business at R.D. 1, Hawley, Pennsylvania.

"2. The Plaintiff, John Reilly, is an individual residing in Wayne County, Pennsylvania, and whose address is Box 130, Hawley, Pennsylvania.

"3. The Plaintiff, Letitia Reilly, is an individual residing in Wayne County, Pennsylvania, and whose address is Box 130, Hawley, Pennsylvania.

"4. The Defendant, Robert P. Casey, is the Auditor General of Pennsylvania and his principal office address is 229 Finance Building, Harrisburg, Dauphin County, Pennsylvania.

"5. The Defendant is conducting an audit of the financial affairs of Hillcrest School, Inc. for the period 1964 through April, 1971.

"6. Prior to August 12, 1971, Defendant sought by negotiation with attorneys for Plaintiffs to audit the financial affairs of Hillcrest School, Inc., but Plaintiffs refused to submit to such an audit.

"7. Defendant filed a subpoena with the Sheriff of Lackawanna County on August 12, 1971 directing the Plaintiffs to turn over certain records of Hillcrest School, Inc., to Defendant on August 13, 1971.

"8. Under protest and under threat of the issuance of a subpoena, the Plaintiffs delivered to the Defendant certain documents and records of Hillcrest School, Inc., for the years 1963 through 1970 inclusive as shown by a receipt executed by Thomas P. Kennedy, Esq., Counsel

[5 Pa. Commw. 626 Page 629]

    for the Department of the Auditor General, attached to the Complaint as Exhibit A.

"9. The Defendant seeks to audit the said records and documents and plans to report on said audit.

"10. Prior to April 1, 1971, Hillcrest School, Inc., was a facility licensed by the Pennsylvania Department of Public Welfare to provide interim care for mentally retarded children.

"11. Prior to April 1, 1971, Hillcrest School, Inc., provided care for mentally retarded children for which it received direct payments from the ...


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