Township of Derry v. Pennsylvania Department of Labor & Industry

The Pennsylvania legislature enacted the Pennsylvania Construction Code Act (PCCA), which regulated the construction and repair of all “state-owned buildings.” The PCCA provided that the Pennsylvania Department of Labor and Industry (the department) (defendant) would maintain inspection and review authority over the building plans for all state-owned buildings. The department promulgated a regulation that defined state-owned buildings to include those owned by “state-related institutions” such as Pennsylvania State University (PSU). The Milton S. Hershey Medical Center (the medical center) was located in the Township of Derry (plaintiff). The medical center was affiliated with PSU, whereas PSU’s medical school conducted certain operations at the medical center. Derry’s zoning ordinances provided that its zoning officer must inspect and approve all building plans before issuing a building permit for renovations and new construction. Prior to the enactment of the PCCA, the medical center and PSU submitted required applications for building permits for renovation and construction projects on the medical center campus. Once the PCCA was enacted, the department began reviewing the medical center’s construction plans, and the medical center no longer submitted those plans to Derry for approval. Derry filed a lawsuit against the department, arguing that the department’s interpretation that the PCCA governed the medical center campus was erroneous and that the department did not have the authority to review and approve the medical center’s construction plans. The department filed a preliminary objection to the lawsuit in the form of a demurrer, arguing that Derry’s lawsuit should be dismissed.