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Wells Fargo Bank, National Association v. Parking Auth. of City of Scranton

Commonwealth Court of Pennsylvania

June 26, 2014

Wells Fargo Bank, National Association As Indenture Trustee
v.
The Parking Authority of the City of Scranton and the City of Scranton; Appeal of: Teamsters Local 229

Argued March 12, 2014.

Appealed from No. 12-CV-4676. Common Pleas Court of the County of Lackawanna. Geroulo, J.

Stephen J. Holroyd, Philadelphia, for appellant.

Michael J. Asbell, Scranton, for appellee Wells Fargo Bank, National Association.

Jennifer J. Clark, Scranton, for appellee Michael J. Washo.

BEFORE: HONORABLE DAN PELLEGRINI, President Judge, HONORABLE BERNARD L. McGINLEY, Judge, HONORABLE RENÉ E COHN JUBELIRER, Judge, HONORABLE ROBERT SIMPSON, Judge, HONORABLE MARY HANNAH LEAVITT, Judge, HONORABLE P. KEVIN BROBSON, Judge, HONORABLE ANNE E. COVEY, Judge.

OPINION

Page 372

P. KEVIN BROBSON, Judge

On May 30, 2013, the Court of Common Pleas of Lackawanna County (trial court), following a hearing, preliminarily enjoined Teamsters Local 229 (Union) from " pursuing arbitration of grievances identified as American Arbitration Association Case No. 14-390-01245-12" against the Parking Authority of the City of Scranton (Parking Authority). The Union now appeals the trial court's order, which, under our standard of review, we must affirm if there are any apparently reasonable grounds for the trial court's decision. Dillon v. City of Erie, 83 A.3d 467, 472 n.7 (Pa. Cmwlth. 2014).

The Union argues that the trial court's order violates the Pennsylvania Labor Anti-Injunction Act, Act of June 2, 1937, P.L. 1198, as amended, 43 P.S. § § 206a-206r (Anti-Injunction Act), and the Public Employe Relations Act, Act of July 23, 1970, P.L. 563, as amended, 43 P.S. § § 1101.101-.2301 (PERA). In response, Appellees Michael J. Washo, court-appointed receiver for certain assets of the Parking Authority (Receiver), and UMB Bank, N.A., successor to Wells Fargo Bank, N.A., as trustee of bond indentures used to finance the assets under receivership (Bond Trustee), contend that the trial court acted appropriately under authority conferred by what is commonly known as the Pennsylvania Parking Authority Law, 53 Pa. C.S. § § 5501-5517 (Authority Law).

Certain relevant facts are undisputed. The Union and the Parking Authority entered into a collective bargaining agreement (Agreement), the most recent term of which extended to February 5, 2013. The Agreement includes mandatory American Arbitration Association (AAA) arbitration to resolve grievances. (Reproduced Record (R.R.) 128a-29a.) While the Agreement was in effect, the Bond Trustee exercised its right under the Authority Law to seek a court-appointed receiver due to the Parking Authority's default in the payment of principal and/or interest on the outstanding bonds used to finance certain

Page 373

Parking Authority facilities (Facilities). In this regard, the Authority Law provides:

(4) A trustee under this subsection or a trustee under any deed of trust, indenture or other agreement, whether or not all bonds have been declared due and payable, shall ...

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