Monday, February 3, 2014

Bankruptcy Court Invalidates State Court Ruling On City of Reading Recycling Fees

The City of Reading Monday announced that on January 31 the United States Bankruptcy Court in Philadelphia invalidated the Commonwealth Court's October 23, 2013 decision in Iezzi v. City of Reading, a decision that held that the City of Reading could not support its recycling program with a small user fee.
The Bankruptcy Court's decision was based on the City's argument that the Commonwealth Court improperly acted after the property owner had declared bankruptcy. While the City obviously has no control over what litigation the future may bring, the Bankruptcy Court's ruling permits the City to again begin taking in much needed revenue to defray the cost of its recycling program, and the City intends to resume the collection of the user fee in the near future.