The Pennsylvania Unfair Trade Practices and Consumer Protection Law does not apply to political subdivision agencies.

Community College of Beaver County (CCBC), a Beaver County, Pennsylvania political subdivision agency, unsuccessfully filed partial summary judgment against the plaintiffs’ claim under the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL), 73 Pa. Stat. Ann. §§ 201-1 et seq. The plaintiffs, former CCBC students who enrolled in and completed substantial work in CCBC’s police training program, claimed that CCBC’s malfeasance caused state officials to decertify the program, thereby rendering their educational and financial investments largely worthless. CCBC appealed to the Pennsylvania Supreme Court the denial of summary judgment on the grounds that the UTPCPL, which provides a private cause of action for “persons” injured by other “persons’” employment of unfair trade practices, does not apply to political subdivision agencies.

The Supreme Court, conducting a de novo review, found that the Commonwealth Court erred by affirming the trial court’s denial of the community college’s partial summary judgment. Although the court found that UTPCPL was ambiguous as to whether political subdivision agencies constitute “persons,” the court concluded that, based on the UTPCPL’s purpose and the consequences of a holding that the law applied to such agencies, the legislature did not intend for the definition of “person” to include political subdivision agencies. Accordingly, the Commonwealth Court’s order affirming the trial court’s denial of partial summary judgment was reversed, and the matter was remanded for further proceedings.

Case Law Alerts, 4th Quarter, October 2014