On March 22, 2012, Dauphin County Judge Hoover ruled that the Harrisburg Incinerator creditors TD Bank, Bank of NY Mellon, and Assured Guaranty had the right to a receiver for the Incinerator, a receiver separate and apart of from the Receiver of the City of Harrisburg. Per his own testimony, it was this ruling that compelled David Unkovic to quit because he believed it thwarted his job as Receiver to implement the Harrisburg's Recovery Plan. The Harrisburg Authority (THA), owner of the Incinerator, along with the Office of the Receiver filed an appeal to Judge Hoover's ruling, which was heard on June 6, 2012 in front of seven Commonwealth Court judges. Attorneys for THA and the Office of the Receiver argued that a receiver for the Incinerator conflicts with the Act 47 statute and unnecessarily complicates a process designed to streamline the municipality's fiscal recovery. In the Commonwealth courtroom, THA attorney Steven Grubb declared, "The amended Act 47 came into being because of an emergency. It is the Governor exercising his police powers because the situation is that bad. It was put forth to establish one direction, one receiver to guide." He punctuated his point by stating, "We intend for this Act 47 Receiver to be very powerful." Office of the Receiver attorney McKenna, Long, and Aldridge's Mark Kauffman furthered this argument by asserting that an Incinerator receiver would "undermine, delay, and render more costly," the process of selling the the Incinerator, which would ultimately be to the creditors' disadvantage. In response, attorneys for the creditors cited their entitlement via PA's Municipal Authorities Act, which gives them an "unqualified contractual right" to a receiver. When asked repeatedly by the Commonwealth Court judges why it was so important that the creditors exercise any rights to a receiver, Assured Guaranty attorney Paul Hummer responded, "We have the right to a receiver. We don't have to have a reason." Pushed further, Hummer said, "We do not have confidence in the Authority Board" as being clear and transparent in its account of its monies. At one point, the judges inquired if the City's Receiver would have the authority to fire the Incinerator receiver (should one be appointed) or even if the Harrisburg Receiver could concurrently be the Incinerator's receiver, which lead to the creditors to concede, "theoretically." Afterwards, Harrisburg Receiver General William Lynch chuckled at the thought of such theoretical possibilities saying, "It's way premature to speculate on these things." Lynch also stated he objects to any extension of the law which prohibits the City of Harrisburg from filing Chapter 9. "It limits my abilities, the tools I have in my belt." No Incinerator receiver can be put in place until the Commonwealth Court issues a ruling on the appeal, which could take up to three months.---Tara Leo Auchey Tags: Harrisburg Receiver Lynch Commonwealth Court Judge Hoover TD Bank Photo/Natalie Cake