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MBM Law Effectively Defends Against a Retroactive Tax Assessment Reduction

MBM Law’s litigation team successfully defended a case that has significant implications for property owners and taxing bodies throughout Allegheny County.

Securing Property Tax Assessment Finality for Taxing Bodies

Our client, a local taxing body, faced a challenge from property owners who purchased a property in Allegheny County in 2018. After their purchase, the property’s tax assessment was increased in 2019 based on the sale price. The owners appealed this increase, and the case ultimately settled in court, with the higher assessment remaining in place for 2019, 2020, and future years.

In 2022, a separate court case determined that Allegheny County’s Common Level Ratio (CLR)-a key figure used to calculate property assessments-had been miscalculated for that year. The court ordered the CLR reduced from 81.1% to 63.5%, which meant that many properties could have been over-assessed for 2022. Seeing an opportunity, the property owners in our case filed a petition in 2023 to reopen their previous settlement and apply the lower CLR retroactively, hoping to reduce their tax assessment (and taxes owed) back to 2019.

Tax Assessment Defense Win

MBM Law argued that the property owners waited too long to file their petition after learning about the CLR reduction and did not meet the strict legal standards required to initiate a case after the deadline (known as a “nunc pro tunc” appeal). The trial court agreed, finding that the owners had not acted quickly enough and had not shown fraud or an administrative error that would justify reopening the case so late.

The property owners appealed, but the Commonwealth Court affirmed the trial court’s decision. The higher court emphasized that nunc pro tunc appeals are only allowed in rare circumstances and must be filed promptly after discovering the issue that requires a matter be examined by the courts. Since the owners waited six months before taking action, their petition was denied. Importantly, the court also noted that the error in the CLR only applied to 2022, not to the earlier years covered by the original settlement.

Why This Property Tax Ruling Matters for Local Governments

This outcome is crucial for local governments and school districts. If the court had allowed the property owners to reopen old settlements and apply the new CLR retroactively, it could have triggered a flood of similar appeals for prior years. This would have created massive uncertainty, potentially forcing taxing bodies to issue millions of dollars in refunds and throwing annual budgets into chaos.

By upholding the finality of settlements and the importance of acting quickly, the decision provides much-needed stability for everyone involved in the property tax system. It ensures that both property owners and taxing bodies can rely on settled assessments and plan for the future with confidence.

The U.S. District Court for the Western District of Pennsylvania granted summary judgment in favor of MBM’s School District client in an age discrimination case. The court found that the School District provided a legitimate, non-discriminatory reason for not hiring the plaintiff, a former district day-to-day substitute teacher age 52, for a permanent full-time teaching position.

MBM’s defense team successfully argued that the plaintiff’s case relied on “unsupported assertions, speculation, and conclusory allegations” rather than concrete evidence of age discrimination. The court agreed there was no basis for a reasonable jury to find the School District’s hiring decision was motivated by age bias.

MBM’s main legal defense was the McDonnell Douglas burden-shifting framework for analyzing employment discrimination claims.  The School District met this burden by providing a legitimate reason; that they hired a younger long-term substitute teacher who had been serving in the role for 1.5 years, knew the curriculum and staff, and had received positive reviews. In contrast, the plaintiff had never taught the specific grade or worked as a long-term substitute at that particular school.

MBM Secures Victory in Commonwealth Court for Landowner

Success Achieved for Client With a Skillfully Crafted Puzzle of Special Exceptions and Variances

Our client, a developer with two parcels of land, faced daunting zoning issues associated with its planned food establishment and off-site parking lot. The Land Use Team at Maiello Brungo & Maiello (MBM) devised a proposal using multiple criteria that successfully satisfied ordinance specifications. The MBM team crafted an interpretation of the legal ordinance that allowed our client to proceed with development by combining three special exceptions and one variance together.

Working with our client’s architect and traffic engineer, MBM constructed an alternative parking plan to limit vehicular traffic, incorporating public transportation and bicycling programs, employee financial incentives, and discounts for customers who use ridesharing. Through these efforts, the landowner had satisfied the criteria for special exception under the Zoning Code.As for the dimensional variance needed for the parking lot, MBM effectively demonstrated unnecessary hardship with the triangular-shaped lot and its unique positioning. The City of Pittsburgh Zoning Board of Adjustment granted the Landowner’s applications for both special exceptions and variances after a presentation by MBM and its client.

The trial court reversed the Zoning Board’s decision, calling the landowner’s Alternative Parking Plan “aspirational.” However, on appeal, the Commonwealth Court reinstated the Pittsburgh Zoning Board’s initial ruling in favor of our client.

Read more of our legal real estate victory in the Pittsburgh Business Times.

MBM Is Swift in Seamless Transaction

MBM Partners Worked With Buyer and Seller of Operating Manufacturing Plant for 45 Day Turnaround

MBM represented a client in purchasing the building, assets, and real estate of an operating manufacturing plant in Pennsylvania on an accelerated time schedule. Our attorneys also worked with the seller, ensuring a smooth transition resulting in zero business interruption. The business acumen of attorneys Lawrence Maiello and John Prorok, and leveraging the skill of their business law team, were key in accomplishing the successful outcomes of this transaction. Our client received our experienced counsel in identifying risks and opportunities while meeting the quick turnaround times needed to get the deal done.

Within 45 days, MBM accomplished the following:

• Negotiated and Executed Transactional Agreements for the assets and real estate
• Smooth integration of new management
• Continuance of employee health plans and fringe benefits
• Clear and concise communications strategy alerting clients and vendors in change of ownership, ensuring uninterrupted exchange of goods and services
• Timely financing secured with lenders
• Structured the new entity

MBM’s affiliate title agency, MBM Property Services, LLC, provided settlement services and title insurance for the commercial real estate component of the transaction.

MBM Successfully Structures $48 Million Commercial Office Park Transaction

MBM Partner Structured Continental Executive  Parke Deal Alongside Asset Manager Client, Establishing New Corporate Campus in Chicago Area.

Our client, JMS Capital Group, in its role as asset manager for for PWA Continental Executive Parke, LP, facilitated a twelve-year $48M lease with Baxter Credit Union at Continental Executive Parke located in Vernon Hills, Illinois. Included in the deal was a plan to create a 176,000 square foot state-of-the-art corporate headquarters. MBM Partner, Lawrence Maiello, played a critical role in the successful structuring of the office park.

Favorable Pa Commonwealth Court Ruling Secured for School District Client

MBM Representation Led to Favorable Interpretation of Public School Code Regarding Criminal Background Checks for Construction Employees.

When a local union brought suit against several school districts alleging a violation of the School Code, MBM’s School Law team stepped in. While the School Code only mandates criminal background checks for construction contractor employees that have direct contact with students, our clients opted for stricter policies that mandated checks for all construction employees – regardless of their contact with students. The ruling brought down by the PA Commonwealth Court reinforced our clients’ right to impose more stringent policies that must be followed by construction employees.

MBM Successfully Structures $16.75 Million Refinance of Commercial Property Development

MBM Partner Represented Asset Manager in the Refinance of Keystone Crossings – A Commercial Property Development Located in Indianapolis.

Our client, JMS Capital Group, in its role as asset manager for PWA Keystone Crossings, LP, decided to facilitate a $16,750,000 refinance of the Keystone Crossings property, a commercial development located north of downtown Indianapolis. The Keystone Crossings property consists of a 100,000 square foot commercial office tower and two outparcel buildings. JMS Capital Group, through the refinance process, returned 100 % of investors’ initial capital investment. In addition to the return of capital, investors also received an average paid annual dividend of 10% since purchase. MBM Partner, Lawrence Maiello, played a critical role in the successful structuring of the development.

MBM Successfully Guides Retail Client Through Sale of Business

MBM Representation of a Small Business Led to a Successful Sale and Opportunity for National Rebranding and Franchising.

Maiello, Brungo & Maiello, LLP recently represented a family owned business in the sale of its dry cleaning retail stores and operations located in Ohio. The business will be rebranded as a national dry cleaning franchise. The transaction involved the transfer of store leases, environmental indemnities, and equipment. The client will continue to operate its dry cleaning business in Pennsylvania and West Virginia.

MBM Successfully Represents Zoning Board in Zoning Permit Revocation Case

MBM Representation of a Zoning Board Led to the Successful Revocation of an Unconventional Gas Well Zoning Permit.

Maiello, Brungo & Maiello, LLP recently represented the East Pittsburgh Zoning Board, who upheld the revocation of a permit for an unconventional gas well for failure to move on the project.  MBM successfully defended the revocation, which ultimately led the Pennsylvania DEP to terminate the project.  MBM Attorney Michael Korns conducted the necessary hearings and crafted the legal basis for the withdrawal of the permit that led to the abandonment of the site.

MBM Secured Total Victory for Township Client in Pa Commonwealth Court

MBM Attorneys Secured Finding That the Township’s Oil and Gas Ordinance Was Valid and Constitutional.

When an activist group filed suit against our client, a First Class Township in Westmoreland County, MBM successfully defended the Township and its leaders against charges that an oil and  gas ordinance was unconstitutional and invalid.  MBM first secured total victory in the Westmoreland County Court of Common Pleas, then successfully won a landmark case in the PA Commonwealth Court establishing that local municipalities have the right to develop rules and regulations governing unconventional fracking.

MBM Secures Favorable Labor Arbitration Decision in Teacher Termination Case

MBM Education Law Attorneys Successfully Established That the Teacher’s Communications With a Student Were “Immoral.”

MBM serves as solicitor for a School District that terminated a teacher’s employment contract for the charge of “immorality.” The charge was based on social media communications with a student that involved inappropriate behavior in the school and classroom. The teacher then filed a grievance and the case went to arbitration. The arbitrator found that our client established just cause and was not arbitrary or capricious in its decision to terminate the teacher’s employment. It is important to note that in this case, our clients had a social media policy in place, which directs the staff to maintain professional, moral and ethical relationships with the students in all forms of digital communication.