Cost Management Services, Inc. v. City of Lakewood
178 Wash. 2d 635
| Wash. | 2013Background
- CMS paid a tax to Lakewood 2004–Sept. 2008 deemed occupation tax, later believed to be Lakewood’s utility tax.
- CMS stopped paying in Oct. 2008 after learning Lakewood did not charge occupation tax and sought a refund for 2004–2008.
- Lakewood did not respond to CMS’s refund request for 2004–2008.
- Lakewood issued a May 2009 notice/demand for taxes Oct. 2008–present, not addressing CMS’s refund claim.
- CMS sued in June 2009 for a refund; trial court ruled in CMS’s favor for taxes paid 2004–Sept. 2008.
- Court of Appeals affirmed exhaustion ruling but remanded/held mandamus issue for further review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CMS must exhaust administrative remedies before suit | CMS not required due to Lakewood’s inaction on refund claim | CMS must exhaust available administrative remedies | Exhaustion not required; inaction voided need to exhaust |
| Whether the writ of mandamus to compel Lakewood to hear the refund claim was proper | Mandamus necessary to access statute-barred refund | Mandamus improper due to statute of limitations and administrative alternatives | Writ of mandamus reversed; cannot revive time-barred claim via administrative route |
Key Cases Cited
- Chaney v. Fetterly, 100 Wn. App. 140 (2000) (concurrent original jurisdiction may affect exhaustion analysis)
- Qwest Corp. v. City of Bellevue, 161 Wn.2d 353 (2007) (mentions exhaustion where courts have original jurisdiction)
- Dougherty v. Dep’t of Labor & Indus., 150 Wn.2d 310 (2003) (cautions against intertwining procedural rules with jurisdiction)
- Jones v. Dep’t of Health, 170 Wn.2d 338 (2010) (exhaustion standard reviewed de novo)
- Chaney v. Fetterly, 100 Wn. App. 140 (2000) (original jurisdiction and exhaustion relationship discussed)