City of Philadelphia v. Philadelphia Parking Authority

Chief Justice ZAPPALA,

Dissenting.

I dissent from the per curiam order reversing the Commonwealth Court’s order and remanding the matter to the Commonwealth Court for further proceedings on the merits with the Governor as a party defendant. The majority has not proffered an opinion to explain its reasoning for reversing the Commonwealth Court’s order, leaving the parties and the lower court without any guidance as to how to proceed. Indeed, I am at a loss to understand the majority’s decision myself. I caution, however, that whatever the majority’s perception of the importance of Philadelphia’s problems, it should not be so short-sighted that the rest of the Commonwealth must be sacrificed. For the reasons that follow, I would affirm the order of the Commonwealth Court and remand this matter to common pleas court for further proceedings. I would also review the City of Philadelphia’s Petition for Contempt, rather than dismiss it as moot.

On July 20, 2001, Commonwealth Court’s President Judge Doyle entered an order dismissing the action docketed as The City of Philadelphia v. The Philadelphia Parking Authority et al., No. 343 M.D. 2001, for lack of jurisdiction. In a *449memorandum opinion dated July 27, 2001, President Judge Doyle summarized the relevant facts underlying this litigation.

Before June 19, 2001, the Philadelphia Parking Authority (Authority - or PPA) was controlled by a five-member governing board appointed by the Mayor of the City of Philadelphia. The City of Philadelphia is a City of the First Class and a home-rule municipality. 2 The Authority was incorporated pursuant to a Philadelphia ordinance adopted on January 11, 1950, as authorized by the Parking Authority Law (Law), Act of June 5, 1947, P.L. 458, as amended, formerly 53 P.S. §§ 341-356. The governing board of the Authority was appointed by the Mayor as authorized by Section 8 of the Law, formerly 53 P.S. § 348. For some thirty years after its creation, the PPA exercised authority only over off-street parking functions, such as parking garages. In 1983, however, the City, by ordinance, authorized the PPA to assume the responsibility for on-street parking, including the installation and maintenance of parking meters, promulgation of on-street parking regulations, installation of signage, issuance of parking permits, collection of parking meter receipts and fines, issuance of parking tickets and the towing of illegally parked vehicles. The PPA has also, throughout its existence, issued numerous tax-exempt municipal bonds, including several bond issues that remain outstanding. These include bonds in the amount of over $112 million for two incomplete projects, referred to as the Rittenhouse Square Project 3 and the Disney Quest Project. 4 Because these projects have not been completed (essentially they have not even been started), they currently produce no revenue.
On June 12, 2001, the General Assembly passed Senate Bill 780, which codified several acts including the Parking Authority Law. The Governor signed this legislation on June 19, 2001, thereby enacting it into law as Act 22 of 2001. Pursuant to Act 22, the Parking Authority Law has become part of the Consolidated Statutes of Pennsylvania, codified at 53 Pa.C.S. §§ 5501-5517. While most of the substantive provisions of the Law remained intact, Act 22 contained one *450significant addition, which is the subject of this litigation. That addition, found at 53 Pa.C.S. § 5508.1 contains “special provisions for authorities in Cities of the First Class.” These “special provisions” authorize the Governor to appoint six new members to the governing board of the PPA. While the original members appointed by the Mayor continue to serve out the remainder of their terms, no new members can be appointed by the Mayor. The net effect of Section 5508.1 is to transfer control of the Authority immediately from the present board members appointed by the Major of Philadelphia to the six new board members appointed by the Governor. Additionally, Section 5508.1 provides that, sometime during the fiscal year 2001,5 the PPA shall transfer “to the general fund of a school district of the first class coterminous with the parent municipality [the School District of Philadelphia] that portion of its retained earnings, not to exceed $45,000,000, which will not jeopardize the authority’s ability to meet debt service payments or to retire outstanding bonds.... ”
The City filed the instant action in the Court of Common Pleas of Philadelphia County on June 29, 2001. The complaint, sounding in equity and declaratory judgment, named the governor’s newly-named appointees6 and the PPA itself as defendants (collectively referred to as Respondents), and consists of nine counts, alleging alternative reasons why Act 22 should be declared invalid. Briefly summarized, the City’s arguments are that Act 22 intrudes upon the City of Philadelphia’s Home Rule Charter and thereby violates Article 9, Section 2 of the Pennsylvania Constitution; that Act 22 impairs the outstanding bonds indebtedness issued by the PPA in a variety of ways; that Act 22 violates Article 1, Section 17 of the Constitution relating to impairment of contracts; that Act 22 violates the single subject rule of Article 3, Section 3 and that Act 22 constitutes invalid special legislation and/or a delegation of municipal power to a special commission in contravention of Article 3, Sections 31 and 32 of the Constitution.
*451The Court of Common Pleas scheduled a hearing on Petitioner’s motion for a preliminary injunction for July 10, 2001. At that hearing, however, Respondents argued that the Common Pleas Court lacked jurisdiction because the PPA was a “Commonwealth agency” or, in the alternative, that the Governor was an indispensable party to the thereby vesting jurisdiction over the case with the Commonwealth Court.7 By order dated July 10, 2001, the Court of Common Pleas agreed that the Governor was an indispensable party and transferred the entire matter to this Court. Following a telephone conference call with President Judge Doyle on July 12, 2001, with all parties participating, all of the parties agreed to maintain the then existing status quo,8 and we then scheduled a hearing on Petitioner’s expedited motion for a preliminary injunction for Friday, July 20, 2001, and ordered the parties, including the Governor, to brief the issue of jurisdiction before the scheduled hearing.

*452Slip opinion at 2-5 (emphasis supplied).

Before President Judge Doyle, the Philadelphia Parking Authority and its six appointees, who had been named by former Governor Ridge to the Authority’s governing board pursuant to the legislation in dispute, asserted that the Court had exclusive jurisdiction over this litigation because the Authority was a Commonwealth agency, and because the Governor was an indispensable party. President Judge Doyle rejected both assertions, finding that the Parking Authority was not the “Commonwealth government” for purposes of the Commonwealth Court’s original jurisdiction and that the Governor was not an indispensable party to the litigation.1 The action was dismissed for lack of jurisdiction.

On appeal, the City of Philadelphia asserts that the common pleas court has original jurisdiction over this matter because the Philadelphia Parking Authority is a local authority not subject to the original jurisdiction of the Commonwealth Court • and because the Governor is not an indispensable party. First, the City asserts that the original jurisdiction of the Commonwealth Court is limited under 42 Pa.C.S. § 761(a)(1) and does not extend to local authorities. In addition to case *453law, the City relies upon the following definition of local authority set forth in the Statutory Construction Act

When used in any statute finally enacted on or after January 1, 1975, a municipal authority or any other body corporate and politic created by one or more political subdivisions pursuant to statute.

1 Pa.C.S. § 1991.

Secondly, the City asserts that the Governor is not an indispensable party to this litigation given the nature of the case. The City contends that the appointive power granted to the Governor by virtue of the Legislature’s enactment of Act 22 is not an interest essential to the substantive challenges to Act 22 itself. The Governor’s appointive power is not one granted by the Pennsylvania Constitution, but depends upon the lawfulness of Act 22. The City argues that the Governor’s interest in seeing a statute declared lawful does not render him an indispensable party.

I agree with President Judge Doyle that the Commonwealth Court did not have original jurisdiction in this case. Although the City has presented two issues on appeal, not all of the parties have addressed the issue of whether the Philadelphia Parking Authority is a Commonwealth agency subject to the original jurisdiction of the Commonwealth Court. The argument relating to whether the Philadelphia Parking Authority is a Commonwealth agency for purposes of determining whether original jurisdiction of this matter is in Commonwealth Court was not addressed by all of the parties. The issue was briefed by the City of Philadelphia and by the Philadelphia Parking Authority and its new gubernatorial appointees. The Philadelphia Parking Authority and appointees thereof argue that the Commonwealth Court had exclusive jurisdiction over this case because the authority is a Commonwealth agency. They contend the clear language of the authority’s enabling statute provides that it is such an agency and not an instrumentality of a municipality, stating

[w]hen statutory language is unambiguous, courts must follow the letter of the law rather than attempting to divine *454its spirit or hidden meaning. The letter of the law in this case provides that the Commonwealth Court must exercise jurisdiction over this lawsuit.

Brief for Appellees at 3.

This issue was also not addressed in the Brief for the Governor and the Attorney General of Pennsylvania. In his brief, the Attorney General states that he

entered his appearance in this case before the Governor had been named as a defendant. See Pa.R.Civ.Proc. 235 (Attorney General may enter a case in which the constitutionality of a statute is drawn into question, if no Commonwealth officer is a party). As we discuss below, one of the issues in this case is whether the Governor must be made a party. The Attorney General has therefore remained in the case in his own right, in order to defend, the statute regardless of the Governor’s status as a party.

Brief for the Governor and the Attorney General of Pennsylvania at 6 n. 2 (emphasis added).

The Attorney General has not indicated in his brief whether he agrees with the position taken by the Philadelphia Parking Authority and the Governor’s appointees that the Authority is a Commonwealth agency. His brief also does not offer any analysis of or insight into the Governor’s position on the issue. Instead, the brief addresses whether the Governor is an indispensable party and extensively discusses the merits of the issue addressed in dicta by the Commonwealth Court, i.e., whether the City of Philadelphia failed to establish its right to a preliminary injunction.

It is unclear from the briefs filed by all Of the appellees in this case whether there is a unanimity of opinion among them as to the legal status of the Philadelphia Parking Authority as a Commonwealth agency or local authority. Given the serious ramifications of the majority’s determination that the Commonwealth Court has original jurisdiction of this matter, the reluctance of the Attorney General to address this issue is of great concern.

*455President Judge Doyle’s discussion of the legal status of the Philadelphia Parking Authority provides a framework for understanding his ultimate conclusion regarding the jurisdiction of the Commonwealth Court.

The Commonwealth Court has original jurisdiction of all civil actions or proceedings against the Commonwealth government, including any officer thereof acting in an official capacity, except in limited instances that are not presented in this case. 42 Pa.C.S. § 761(a)(1). The Judicial Code defines “Commonwealth government” as

[t]he government of the commonwealth, including the courts and other officers or agencies of the unified judicial system, the General Assembly and its officers and agencies, the governor, and the departments, boards, commissions, authorities and officers and agencies of the Commonwealth, but the term does not include any political subdivision, municipal or other local authority, or any officer or agency of any such political subdivision or local authority.

42 Pa.C.S. § 102.

In addressing the argument of the Philadelphia Parking Authority and its appointees that the Commonwealth Court had exclusive jurisdiction over this lawsuit because the Authority itself was a Commonwealth Court agency under the clear language of its enabling statute, President Judge Doyle stated:

While it is true that the Law contains language stating that the PPA shall exercise “public powers of the Commonwealth as an agency of the Commonwealth,” and “shall not be deemed to be an instrumentality of the municipality,” it is beyond peradventure that it remains a local authority, which exercises no statewide powers.10 This Court has, in fact, expressly so held in E-Z Parks, Inc. v. Larson, 91 Pa. Cmwlth. 600, 498 A.2d 1364 (1985), aff'd, 509 Pa. 496, 503 A.2d 931 (1986). In E-Z Parks, an action was filed in the Commonwealth Court’s original jurisdiction, naming both the Department of Transportation and the PPA as Respondents. On preliminary objections, this Court held that the *456claims against the Department of Transportation were contractual in nature, and therefore were properly brought before the Board of Claims. As to the claims against the PPA, we expressly concluded that the PPA was a “local agency,” both for immunity purposes as well as jurisdiction. Accordingly, the remaining claims against the PPA were transferred to the Court of Common Pleas of Philadelphia County. See also Rhoads v. Lancaster Parking Authority, 103 Pa.Cmwlth. 303, 520 A.2d 122 (1987), petition for allowance of appeal denied, 515 Pa. 611, 529 A.2d 1084 (1987), (holding that the Lancaster Parking Authority was a “local agency” for both jurisdictional purposes under 42 Pa.C.S. § 102 and immunity purposes under 42 Pa.C.S. § 8501).
Although E-Z Parks has not been overruled and remains the controlling law regarding the issue of jurisdiction, Respondents contend that it has been effectively modified by our Supreme Court’s opinion in Marshall v. Port Authority of Allegheny County, 524 Pa. 1, 568 A.2d 931 (1990). In that decision, our Supreme Court concluded that the Port Authority of Allegheny County was a “Commonwealth party” for purposes of sovereign immunity. However, the Commonwealth Court has consistently held that “While authorities may be considered an ‘instrumentality of the commonwealth’ [for some purposes, e.g. immunity] that does not mean that they are automatically considered to be ‘the Commonwealth’ for all purposes.” SEPTA v. Union Switch & Signal, 161 Pa.Cmwlth. 400, 637 A.2d 662, 666 (1994), petition for allowance of appeal denied, 538 Pa. 662, 648 A.2d 792 (1994). In Quinn v. Southeastern Pennsylvania Transportation Authority, 659 A.2d 613, 615 (Pa.Cmwlth. 1995), a case decided five years after Marshall, we stated unequivocally that “[t]his Court has repeatedly held that for the purposes of determining jurisdiction, SEPTA is a local agency and not an agency of the Commonwealth.”...

*457Slip opinion at 7-8 (emphasis supplied).

The City of Philadelphia argues that jurisdiction over this action properly belongs in the common pleas court. It asserts that the Philadelphia Parking Authority is a local authority not subject to the original jurisdiction of the Commonwealth Court. The Commonwealth Court’s jurisdiction over all civil actions and proceedings against the Commonwealth government specifically excludes actions against municipal or other local authorities under the definition of “Commonwealth government” set forth at 42 Pa.C.S. § 102.

The City of Philadelphia argues that the Philadelphia Parking Authority is a local authority as defined under the Statutory Construction Act. When used in a statute finally enacted on or after January 1, 1975, “local authority” is defined by the Statutory Construction Act as “a municipal authority or any other body corporate and politic created by one or more political subdivisions pursuant to statute.” 1 Pa.C.S. § 1991. The Philadelphia Parking Authority was originally created pursuant to statute, i.e., the Parking Authority Law, formerly codified at 53 P.S. §§ 341-356. This statute was the precursor to Act 22 of 2001 which is the subject of this litigation.

The definition of “local authority” in the Statutory Construction Act applies to the term as used in the Judicial Code, 42 Pa.C.S. § 102.

Although the Judicial Code does not define “local authority,” the Statutory Construction Act does. It provides that the phrase “local authority,” [w]hen used in any statute finally enacted on or after January 1, 1975, means “a municipal authority or any other body corporate and politic created by one or more political subdivisions pursuant to statute.” 1 Pa.C.S. § 1991. Both the Judicial Code and the Tort Claims Act were enacted after January 1, 1975; hence, both are subject to this overarching definition.

Sphere Drake Insurance v. Philadelphia Gas Works, 566 Pa. 541, 782 A.2d 510, 513 (2001) (citation omitted).

*458It further assert^ that the Philadelphia Parking Authority is not the type of entity that the General Assembly intended to include within the Commonwealth Court’s original jurisdiction. Because the Philadelphia Parking Authority operates solely in the City of Philadelphia, and its functions have no statewide impact, there is no need to invoke the Commonwealth Court’s jurisdiction to ensure uniformity and consistency in decisions involving the authority.

The Philadelphia Parking Authority claims that the Commonwealth Court has exclusive jurisdiction over this matter because the authority is a Commonwealth agency. It argues that such a conclusion is compelled by the specific language of Act 22, which states that ‘[t]he Authority shall constitute a public body corporate and politic, exercising public powers of the Commonwealth as an agency of the Commonwealth’, and that “[t]he Authority shall not be deemed to be an instrumentality of the municipality.” Similar language appeared in the repealed provision of the Parking Authority Law, 53 P.S. § 345(a), which provided, in relevant part:

The Authority, incorporated under this act, shall constitute a public body corporate and politic, exercising public powers of the Commonwealth as an agency thereof, and shall be known as the Parking Authority of the city, borough, or township of the first class, but shall in no way be deemed to be an instrumentality of the city, borough, or township of the first class or engage in the performance of a municipal function, except such functions as are delegated to it by municipal ordinance or resolution passed pursuant to this act.

I agree with President Judge Doyle’s conclusion that the Commonwealth Court does not have exclusive jurisdiction over this matter. The arguments offered by the Philadelphia Parking Authority in support of its argument that it is a Commonwealth agency subject to the exclusive jurisdiction of the Commonwealth Court have been previously rejected by this Court. Furthermore, acceptance of such assertions has ramifications for purposes other than determining jurisdiction over civil actions.

*459The argument of the Philadelphia Parking Authority that the language of Act 22, and its predecessor provisions of the Parking Authority Law, that the authority is “exercising public powers of the Commonwealth as an agency of the Commonwealth” and that it “shall not be deemed an instrumentality of the municipality” ignores the historical significance of such language and imbues it with a meaning that was never intended. The Commonwealth Court has examined similar language in cases involving authorities and concluded that such language alone is not determinative of the status of an authority as a local authority or Commonwealth agency.

In Levine v. Redevelopment Authority of the City of New Castle, 17 Pa.Cmwlth. 382, 333 A.2d 190 (1975), the Commonwealth Court addressed the issue in the context of a proceeding involving the Right to Know Act. The appellant had demanded that the Redevelopment Authority of the City of New Castle allow him to inspect and copy documents, minutes and contracts relating to the authority’s purchase of property. When the Redevelopment Authority refused his demand, the appellant brought a petition for a rule to show cause why the authority should not comply in the common pleas court. The Redevelopment Authority asserted that the common pleas court lacked jurisdiction over the matter when an agency of the Commonwealth was sued. The common pleas court agreed, finding that the Commonwealth Court had original jurisdiction.

On appeal, the Redevelopment Authority asserted that it was an agency of the Commonwealth because language used in the authority’s enabling statute described an urban redevelopment authority as “a public body, corporate and politic, exercising public powers of the Commonwealth as an agency thereof.”2 The Commonwealth Court rejected this argument and transferred the matter to the common pleas court for further proceedings. The court stated,

*460It is true, of course, that the courts have “consistently held that municipal authorities [created pursuant to the Municipal Authorities Act of 1945] are not the creatures, agents or representatives of the municipalities which organize them, but rather are ‘independent agencies of the Commonwealth, and part of its sovereignty’ ”. It has also been held, however, that such authorities are treated for some purposes as local authorities notwithstanding language to the contrary in the enabling statute. Thus, a local housing authority was held not to be an agent of the Commonwealth within the purview of Section 401(a)(1) of the Appellate Court Jurisdiction Act of 1970 which confers original jurisdiction upon the Commonwealth Court in civil actions against the Commonwealth and its officers and agents. It was held instead to be a local authority and, therefore, within the original jurisdiction of the appropriate court of common pleas. We must reach the same conclusion in the case at hand, for to reach any other conclusion would lead to the absurd and unreasonable result that a citizen would be required to pursue his right to gain access to information in Harrisburg even though the records were located in the community and the agency involved had been created by an individual city or county and the issues involved were matters strictly within the concern of a particular locality rather than a concern of the Commonwealth generally. The General Assembly, of course, could not have intended such a result.

Id. at 192 (citations and footnotes omitted) (emphasis added).

Southeastern Pennsylvania Transportation Authority v. Kohn, 18 Pa.Cmwlth. 546, 336 A.2d 904 (1975), involved consolidated actions relating to the internal operations of SEPTA and the vote necessary to effectuate action by its board of directors. The Commonwealth Court addressed the issue of whether it had original jurisdiction over the actions under the Metropolitan Transportation Authorities Act of 1963, Act of August 14, 1963, P.L. 984, as amended, 66 P.S. § 2001 et seq. The act “authorized the creation of a separate body corporate and politic in each metropolitan area, to be known as the transportation authority of such area”, and specifically provid*461ed that an authority “shall exercise the public powers of the Commonwealth as an agency and instrumentality thereof.” 66 P.S. § 2004(a).

The court determined that SEPTA was not a Commonwealth agency for purposes of its jurisdiction within the meaning of the provision of the Appellate Court Jurisdiction Act of 1970 formerly set forth at 17 P.S. § 211.401.3 The court further concluded that the multi-county structure and operation of SEPTA did not raise it to the level of a state agency for purposes of jurisdiction

Just as the Commonwealth Court is a court of statewide jurisdiction, the legislature, in defining its jurisdictional role with respect to state and local agencies, intended the Commonwealth Court in its original jurisdiction to concern itself with statewide agencies or statewide instrumentalities of state government, and in its appellate jurisdiction to concern itself with agencies and instrumentalities of local government or governments.

Id. at 906.

In Scott v. Shapiro, 19 Pa.Cmwlth. 479, 339 A.2d 597 (1975), the Commonwealth Court addressed the jurisdictional issue in another matter involving SEPTA. Members of the board of SEPTA brought an action before Commonwealth Court to enjoin a newspaper reporter from initiating criminal proceedings for an alleged violation of the Sunshine Law. The court directed the parties to brief the issue of jurisdiction. The board members claimed that the Sunshine Law had expanded the scope of state agencies beyond that provided under the Appellate Court Jurisdiction Act of 1970, by stating that “[t]he Commonwealth Court shall have original jurisdiction of actions involving State agencies.”

The court dismissed the proceedings for lack of jurisdiction, based upon its analysis in Kohn, supra, that SEPTA was not a state agency for purposes of jurisdiction. The court found that the language of the Sunshine Law did not indicate that *462the parameters of state agency jurisdiction had been extended by its enactment.

The concept of jurisdiction is designed to insure the availability of the most practical and competent forum for the airing of a particular grievance. The legislature’s grant of the powers of a State agency to SEPTA has no relation to this concept. Such a broad grant is necessitated only by the practical imperative of providing autonomy from local governmental interference with the operations of the agency. Local judicial scrutiny of the agency exists in another dimension. Its practicality and desirability must be determined, not on the basis of the powers exercisable by the agency involved, but rather, on the basis of whether the activities of said agency are of local, as opposed to statewide, interest. While SEPTA is not “local” in the traditional sense, in that it encompasses and affects a multicounty area, its activities are certainly not of statewide concern. They are restricted to one particular geographical area within the Commonwealth, and judicial review of said actions may best be provided by the courts of that area.

339 A.2d at 599.

“A municipal authority is an entity distinct from both the Commonwealth and a political subdivision; it is a municipal corporation.... ” Greer v. Metropolitan Hospital, et al., 235 Pa.Super. 266, 341 A.2d 520, 527 (1975), citing Commonwealth v. Erie Met. Transit Auth., 444 Pa. 345, 281 A.2d 882, 885 (1971). The unique status of an authority provides the explanation for why the Legislature uses language referring to authorities as “exercising public powers of the Commonwealth as an agency thereof’ in enabling legislation creating authorities. '

The function of municipal authorities reflects that such

authorities are independent corporate agents of the Commonwealth which exercise governmental, as well as private corporate power, in assisting the Commonwealth in meeting the needs of its citizens. . Additionally, such authorities must be separate and distinct entities from the municipalities *463which form them for reasons of public policy and convenience. But the reason for making municipal authorities distinct entities from the municipalities which form them is the legislature’s intent not to violate Article 3, Section [31 ] of the Pennsylvania Constitution prohibiting the delegation of certain powers (such as the power to make and supervise municipal improvements, to levy taxes, or to perform municipal function) to any special commission, private corporation or association, and to allow municipalities to join together to reap the benefits of economics of scale in the financing, construction and operation of large scale public works projects.

Rhoads v. Lancaster Parking Authority, 103 Pa.Cmwlth. 303, 520 A.2d 122, 126-27 (1987) (citations and emphasis omitted).

The historical underpinning of the use of that language was further explained in Southeastern Pennsylvania Transportation Authority v. Union Switch & Signal, Inc., 161 Pa. Cmwlth. 400, 637 A.2d 662 (1994). The issue raised was whether SEPTA should be considered to be part of the Commonwealth for purposes of determining jurisdiction when contract claims are filed against it with the Board of Claims. Union Switch and SEPTA entered into a contract for the supply and installation of electrical equipment and material. Union Switch filed a complaint against SEPTA with the Board of Claims for costs allegedly incurred due to SEPTA’s delay of the project. SEPTA filed preliminary objections requesting that the matter be dismissed because the Board of Claims lacked jurisdiction to hear the matter. SEPTA asserted that it was not the “Commonwealth” lor purposes of contract claims and that common pleas court had jurisdiction over the claim.

The court held that the Board of Claims did not have jurisdiction over contract claims brought against SEPTA. The court reasoned that the General Assembly did not intend SEPTA to be the Commonwealth for purposes of the Board of Claims Act because SEPTA was financially independent of the Commonwealth and its operations were not statewide. In reaching this conclusion, the court addressed at length the *464analytical difficulties involved in determining whether an authority is a local agency or the Commonwealth government.

The court stated,

The difficulty in determining the status of SEPTA or, for that matter, any authority, is directly related to the reasons behind their creation and authorization by the General Assembly. Although authorities owe their existence to the various units of government and their governing boards are appointed by those entities, they are not considered part of the normal governmental structure. Unlike municipal corporations that have “governmental” and “proprietary” functions, authorities engage only in the latter. Authorities are “public corporations, being corporate agencies, engaged in the administration of civil government.” Generally, authorities are established for the purpose of financing and managing various revenue producing projects of a public nature or other activities that are not considered to be part of core governmental activities; they are a governmental business venture, a form of quasi-privatization. The circumstances prompting their creations are usually for one or more of the following reasons:
• the need for an administrative agency to manage public enterprises which, in certain case [sic], h'ave commercial characteristics, e.g., Metropolitan Transportation Authorities (SEPTA); Parking Authorities;
• the need for an agency which can cross govermnental boundary lines for the effective handling of intercommunity problems, e.g., SEPTA;
• the need for a method to carry out activities that are constitutionally or statutorily proscribed such as the need to finance public improvements without running afoul of the constitutional limits on debt
While the first two reasons for the creation are very similar to reasons why a private corporation would create a subsidiary to carry out an enterprise ..., the last reason, the need *465to avoid constitutional impediments, is the one that causes the confusion as to whether authorities are part of the Commonwealth and, if so, for what purposes. Because of the need to get around these constitutional impediments, the legislation authorizing the creation of authorities contains language that the authority is not an agency of the governmental unit(s) that creates it, but is considered an agency of the Commonwealth.

Id. at 664-65 (citations and footnotes omitted) (emphasis added). “While authorities may be considered an ‘instrumentality of the Commonwealth’, that does not mean that they are automatically considered to be ‘the Commonwealth’ for all purposes.” Id. at 666.

This Court also addressed the issue of the jurisdiction of the Commonwealth Court in T & R Painting Co., Inc. v. Philadelphia Housing Authority, 466 Pa. 493, 353 A.2d 800 (1976). The painting company brought a contract action against the Philadelphia Housing Authority in the common pleas court. The common pleas court dismissed the action, finding that original jurisdiction over the action was in the Commonwealth Court. The company did not appeal the order, but filed a separate action in Commonwealth Court. After a hearing, the Commonwealth Court determined that the housing authority was not an agency of the Commonwealth and transferred the matter back to common pleas court. We affirmed.

We discussed whether the housing authority was a “Commonwealth authority” or a “local authority” as those phrases were used in the Appellate Court Jurisdiction Act. The authority asserted that the language of its enabling legislation describing it as “a public body, corporate and politic, exercising public powers of the Commonwealth as an agency thereof’, made it an agency of the Commonwealth for jurisdictional purposes.

In concluding that the housing authority was not an agency of the Commonwealth, we found that the specific language relied upon by the authority did not specifically resolve the issue.

*466We are left, then, with the task of determining the legislature’s intent when it gave the Commonwealth Court original and exclusive jurisdiction of “civil actions or proceedings against the Commonwealth” and sought to exclude from that jurisdiction actions against local agencies. The Commonwealth Court is intended to provide a judicial forum for the uniform and consistent resolution of questions of statewide impact. For example, the Department of Environmental Resources must have a clear idea what its powers and duties are and would be severely handicapped if those powers and duties varied from county to county until an appellate court could rule on the issues involved. Conversely, there is no particular need for such uniform statewide resolution of issues involving the powers and duties of local authorities which operate within a single “county, city or other municipality of the State.... ”

Id. at 802.

These cases clearly establish that jurisdiction over this matter involving the Philadelphia Parking Authority belongs with the common pleas court. In reversing the Commonwealth Court’s order, the majority has implicitly overruled longstanding precedent and generated great uncertainty as to the basis for its analysis. When this Court abandons the well-settled interpretation of the provisions of the Judicial Code that define the jurisdiction of our courts, at a minimum it should explain why.

Having determined that the Philadelphia Parking Authority did not fall within the Judicial Code’s definition of Commonwealth government, President Judge Doyle also addressed the argument that the Governor was an indispensable party to this litigation. He concluded that the Governor’s interest in protecting his newly created appointive power was not sufficient to render him an indispensable party.

In this litigation, while there is no question that the relief sought, i.e., a declaration that Act 22 is unconstitutional, would, of necessity, void the Governor’s appointment, nevertheless, the City has not requested any relief against the Governor himself, and the Governor is not essential to a *467determination of the merits. The Governor, in fact, has already executed his own duty under Act 22, that of appointing members to an entity, here a local parking authority. The Governor is authorized by a multitude of statutes to make appointments to various bodies. Those appointments, with nothing more, do not provide the “yeast” so as to allow the jurisdictional loaf of litigation to rise to this Court. The relief sought in this case can be granted in the absence of the Governor as a party, and he is not, therefore, an indispensable party. Accordingly, this Court is not vested with the jurisdictional authority to hear and decide this case.

Slip opinion at 10-11.

The parties recognize that in determining whether a party is indispensable, we must consider: (1) whether absent parties have a right or interest related to the claim; (2) the nature of the right or interest; (3) whether the right or interest is essential to the merits of the issue; and (4) whether justice can be afforded without violating the due process rights of absent parties. CRY, Inc. v. Mill Service, Inc., 536 Pa. 462, 640 A.2d 372 (1994). While the articulation of the analysis is undisputed, its application is vigorously debated.

The majority appears to accept the claim of the Philadelphia Parking Authority and its new appointees that President Judge Doyle “ignored the other factors of the test, including perhaps the most important factor — that an individual’s (that is, the Governor’s) right would necessarily be affected by an adjudication of the case.” Brief for Appellees at 5. The majority seems to conclude that the Governor has a direct, concrete interest in this litigation because the City of Philadelphia’s requests for declaratory and injunctive relief would necessarily implicate the Governor’s appointive power under Act 22.

I find, however, that the Governor’s appointive power is not essential to a disposition of the merits of substantive issues presented in this litigation. To find that the appointive powers granted to the Governor render him an indispensable *468party in this litigation would be troublesome in light of the sheer number of gubernatorial appointments to be made.

Article IV, Section 8 of the Pennsylvania Constitution governs the general appointing power of the Governor.

The Governor shall appoint a' Secretary of Education and such other officers as he shall be authorized by law to appoint. The appointment of the Secretary of Education and of such other officers as may be specified by law, shall be subject to the consent of two-thirds or a majority of the members elected to the Senate as is specified by law.

Pa. Const. Art. IV, Section 8(a).

The Administrative Code of 1929 expounds on the gubernatorial appointive power, providing that

(a) Except as hereinafter provided in this section, the Governor may appoint without obtaining the advice and consent of the Senate such public officers which he is authorized by law to appoint including, without' limitation, members of independent administrative boards and commissions, members of departmental administrative bodies, boards and commissions and departmental administrative officers, and members of advisory boards and commissions.
(b) Repealed.1978, April 28, P.L. 202, No. 53, @ 2(a)[1097], effective June 27,1978.
(c) The Governor shall nominate in accordance with the provisions .of the Constitution of the Commonwealth of Pennsylvania and, by and with the advice and consent of two-thirds of the members elected to the Senate, appoint persons to fill the following positions:
(1) Vacancies in the offices of Auditor General and State Treasurer and in any other elective office which he is authorized by law to fill when said law requires confirmation.
(2) Those members which he is authorized to appoint to the Milk Marketing Board, the Pennsylvania Fish Commission, the Pennsylvania Game Commission, the Pennsylvania Liquor Control Board, the Pennsylvania Public Utility Commission and the Pennsylvania Turnpike Commission.
*469(d) The Governor shall nominate in accordance with the provisions of the Constitution of the Commonwealth of Pennsylvania and, by and with the advice and consent of a majority of the members elected to the Senate appoint persons to fill the following positions:
(1) The Secretary of Education, the Secretary of the Commonwealth, the Adjutant General, the Insurance Commissioner, the Secretary of Banking, the Secretary of Agriculture, the Secretary of Transportation, the Secretary of Health, the Commissioner of the State Police, the Secretary of Corrections, the Secretary of Labor and Industry, the Secretary of Aging, the Secretary of Public Welfare, the Secretary of General Services, the Secretary of Revenue, the Secretary of Commerce, the Secretary of Community Affairs and the Secretary of Environmental Resources.
(2) Those members which he is authorized to appoint to the Board of Pardons, the Board of Probation and Parole, the State Civil Service Commission, the State Horse Racing Commission, the State Harness Racing Commission, the Board of Arbitration of Claims, the Pennsylvania Securities Commission, the Pennsylvania Industrial Development Authority, the State Board of Education, the Board of State College and University Directors, the Board of Trustees of Pennsylvania State University, the Board of Trustees of the University of Pittsburgh, the Board of Trustees of Temple University, the Board of Trustees of Lincoln University, the Environmental Hearing Board, the Pennsylvania Crime Commission, the Pennsylvania Labor Relations Board, the Industrial Board, the Unemployment Compensation Board of Review, the Workmen’s Compensation Appeals Board, the State Art Commission, the State Lottery Commission, the State Transportation Commission and the Pennsylvania Human Relations Commission.
(3) Repealed.1978, April 28, P.L. 202, No. 53, @ 2(a)[1097], effective June 27, 1978.
(4) Those members which he is authorized to appoint to the Delaware Valley Regional Planning Commission, the Pennsylvania Public Television Network Commission, the State *470Farm Products Commission, the Pennsylvania Housing Finance Agency, the Board of Trustees of each State College and University, the Board of Trustees of Scotland School for Veterans’ Children, the Board of Trustees of Thaddeus Stevens College of Technology, the State Conservation Commission, the Commonwealth of Pennsylvania Council on the Arts, the State Planning Board, the Pennsylvania Drug, Device and Cosmetic Board, the County Board of Assistance in each county, the State Board of Public Welfare, the Boards of Trustees of Centers, the Board of Trustees of each Restoration Center, the Board of Trustees' of each State General Hospital, the Board of Trustees of each State School and Hospital, the Board of Trustees of each State Hospital, the State Dental Council and Examining Board, the State Real Estate Commission, the State Registration Board for Professional Engineers, the State Boards of Examiners of Architects, Auctioneers, Nursing Home Administrators and Public Accountants, the State Boards of Barber Examiners, Chiropractic Examiners, Cosmetology, Funeral Directors, Medical Education and Licensure, Nurse Examiners, Optometrical Examiners, Osteopathic Examiners, Pharmacy, Physical Therapy Examiners, Podiatry Examiners, Veterinary Medical Examiners, Landscape Architects and Motor Vehicle Manufacturers, Dealers and Salesmen, the Pennsylvania Board of Psychologist Examiners, the State Athletic Commission, the Pennsylvania Higher Education Assistance Agency, the Pennsylvania Historical and Museum Commission, the State Tax Equalization Board, the Public School Employees’ Retirement Board, the State Employees’ Retirement Board, the Municipal Police Officers’ Education and Training Commission, the Consumer Advocate, and the Pennsylvania Minority Business Development Authority.

71 P.S. § 67.1(a)-(d)(2).

Even the provisions of the Administrative Code do not reflect an exhaustive list of the Governor’s appointive powers, for the Code does not specifically enumerate many legislative grants of appointing power to the Governor, including those *471involving municipal authorities, such as Act 22 of 2001. I would not hold, as the majority appears to do, that the Governor’s appointive power relating to the Philadelphia Parking Authority renders him an indispensable party. It is simply unworkable. Instead, I find that the Governor’s interest in protecting his appointive power under Act 22 is adequately defended by the Attorney General, the Philadelphia Parking Authority itself and the Governor’s own appointees.

I dissent.

Justice CAPPY joins this dissenting statement.

Philadelphia is a home-rule municipality pursuant to the First Class City Home Rule Act, Act of April 21, 1949, P1. 665, as amended. 53 P.S. §~ 13101-13157.

The Rittenhouse Square prqject, located approximately at 19th and Walnut Streets in Philadelphia, involves a joint venture between the City and a developer to build a garage and movie theatre. (Transcript at 12-13). Revenue bonds in the amount of $65,090,000 were issued on January 15, 1999. (See Petitioner's Exhibit 14.)

The Disney Quest Project is a proposal to build a mixed-use development at 8th and Market Streets in Philadelphia, the primary tenant being Disney Quest, with other tenants identified by the developer as ESPN Zone, Animal Forest and other retail spaces. (Transcript at 35). Revenue bonds in the amount of $47,390,000 were issued in May 1, 1999, for this project. (See Petitioner's Exhibit 11.)

The PPA's 2001 fiscal year is from April 1, 2001, to May 31, 2002.

The appointees are Joseph T. Ashdale, Michael A. Cibik, Catherine Marshall, Alfred W. Taubenberger, Russell R. Wagner and Karen M. Wrigley.

42 Pa.C.S. § 701(a)(1).

The status quo as of July 12, 2001 was that the Governor had named his appointees, who had been issued commissions and sworn in as board members. The newly-appointed members, however, had not attempted to assume control over the PPA and agreed to refrain from doing so pending the hearing on Petitioner's motion for preliminary injunction in the Commonwealth Court.

. Although President Judge Doyle concluded that original jurisdiction over this matter did not lie in the Commonwealth Court, he proceeded to address the merits of the substantive issues raised by the parties as to the issuance of a preliminary injunction. The discussion regarding the preliminary injunction was dicta, however.

For an explanation of the historical background of this language, see SEPTA v. Union Switch & Signal, 161 Pa. Cmwlth. 400, 637 A.2d 662 (1994). The PPA itself agrees with this assessment stating on page 2 of its brief “PPA is *457clearly a local agency without state-wide operations and is not a Commonwealth party.”

. The relevant provision of the Urban Redevelopment Law, 35 P.S. § 1701 et seq., states “An Authority shall constitute a public body, corporate and politic, exercising public powers of the Commonwealth of an agency thereof....” 35 P.S. § 1709. This provision remains in effect.

. The current provision governing the original jurisdiction of the Commonwealth Court, 42 Pa.C.S. § 761, is derived from the 1970 ac1.