On April 11, 2022, the Supreme Court of Pennsylvania granted Chester Water Authority’s Petition for Allowance of Appeal and will now decide the critical questions of:
1. Does the City of Chester have the right to seize the assets of Chester Water Authority pursuant to Section 5622(a) of the Municipal Authorities Act, 53 Pa.C.S. § 5622(a), and sell those assets to address its own unrelated financial distress, while overriding the representational rights granted by Act 73 of 2012, 53 Pa.C.S. §§ 5610(a.1), 5612(a.1), to Delaware and Chester Counties?
2. Did the Commonwealth Court commit reversible error by failing to follow Burke v. N. Huntingdon Twp. Mun. Auth., 136 A.2d 310, 313-14 (Pa. 1957), which is controlling precedent that only an authority can authorize transfer under the predecessor to Section 5622(a)?
Now that CWA’s Petition has been granted, the next step will be for the parties to brief and argue their respective positions on these questions to the Supreme Court of Pennsylvania. A copy of the Court’s April 11, 2022 Order is posted below.