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United Artists Theater Circuit, Inc. v. City of Philadelphia

Citations: 528 Pa. 12; 595 A.2d 6; 1991 Pa. LEXIS 152Docket: No. 48 E.D. Appeal Docket 1990

Court: Supreme Court of Pennsylvania; July 10, 1991; Pennsylvania; State Supreme Court

Narrative Opinion Summary

This case involves an appeal by United Artists Theater Circuit, Inc., challenging the Philadelphia Historical Commission's designation of the Boyd Theater as a historic site under Section 14-2007 of The Philadelphia Code. Initially, the Commission had designated the theater as historic despite opposition from its former owner, Sameric Corporation, leading to a legal battle. The primary legal issue revolves around whether this designation constitutes a 'taking' of property without just compensation in violation of Article 1, Section 10 of the Pennsylvania Constitution. The trial court and the Commonwealth Court upheld the Commission's decision, but the higher court reversed these rulings, deeming the designation unconstitutional. The court criticized the Commission's dual role as advocate and decision-maker, violating due process, and highlighted the lack of compensation for property owners burdened by historic designation. The ruling underscores the constitutional protections against the uncompensated appropriation of private property, emphasizing that aesthetic purposes cannot alone justify police power. Consequently, the historic designation of the Boyd Theater was invalidated, marking a significant affirmation of property rights against governmental overreach in historic preservation efforts.

Legal Issues Addressed

Authority of Local Historical Commissions

Application: The Commission's authority to designate historic sites was challenged, questioning its process and adherence to constitutional rights.

Reasoning: The Commission had previously notified Sameric Corporation, the theater's owner, of the proposed historic designation... ultimately decides on its own recommendation, raises significant due process issues.

Constitutional Protections Against Property Appropriation

Application: The court emphasized that property cannot be appropriated for public use without just compensation, reinforcing protections under the Pennsylvania Constitution.

Reasoning: The Pennsylvania Constitution stipulates that private property cannot be appropriated for public use without just compensation.

Due Process in Historic Designation

Application: The court highlighted concerns about the lack of a neutral arbiter in the historic designation process, as the Commission acts both as an advocate and decision-maker.

Reasoning: CAPPY, J., with NIX, C.J. and McDermott, J. concurring, expressed concerns regarding the historical designation process... raises significant due process issues.

Historic Designation and Property Rights

Application: The court ruled that the historic designation of the Boyd Theater constituted a 'taking' without just compensation, violating property rights under the Pennsylvania Constitution.

Reasoning: The court opinion addresses the appeal... ruling that the designation constituted a 'taking' of property without just compensation, violating Article 1, Section 10 of the Pennsylvania Constitution.

Historic Preservation and Police Power

Application: The court noted that aesthetic reasons alone cannot justify the exercise of police power in historic preservation without adequate compensation.

Reasoning: However, the court cites a precedent stating that aesthetic reasons alone cannot justify the exercise of police power, whether in zoning or eminent domain cases.