HealthSouth Corp. v. Testa
132 Ohio St. 3d 55
Ohio2012Background
- HealthSouth appeals a BTA ruling reducing its 2002 personal-property assessment based on fictitious AP SUMMARY assets; remand instructed BTA to complete fact-finding after prior decision noted evidentiary shortcomings; evidence includes the 2002 return, asset lists, Form 8-K, and Form 10-K restatements; BTA found AP SUMMARY assets never existed and that removal and refund were proper; court reviews under highly deferential standard, focusing on reliability and probativity of evidence; law-of-the-case limits new challenges based on fraud-tainted filings; decision affirms BTA and remands to commissioner to calculate a reduced assessment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standard of review for BTA findings | HealthSouth contends BTA credibility weighing is proper | Levin emphasizes deference to BTA findings | BTA findings upheld; deference afforded to credibility weighing. |
| Reliability and probativity of AP SUMMARY evidence | HealthSouth showed AP SUMMARY assets never existed | Commissioner challenged reliability of evidence | Evidence supported BTA’s finding that AP SUMMARY assets did not exist. |
| Admissibility of Form 8-K/10-K as evidence | Public filings are reliable grounds for assessment | Hearsay concerns limit use | Form 8-K/10-K deemed reliable and probative; admissible. |
| Remand to remove AP SUMMARY assets by taxing district | Removal across districts appropriate based on evidence | Remand within allowed scope | BTA properly remanded; reductions permitted per district. |
| Law-of-the-case bar on new fraud-claims | HealthSouth not re-litigating fraud impacts | Commissioner barred from new fraud arguments | Law-of-the-case doctrine precludes new challenge to 2002 filings. |
Key Cases Cited
- HealthSouth Corp. v. Levin, 121 Ohio St.3d 282 (2009) (rejected estoppel/false-fraud bar; remand for fact-finding and justification of BTA decision)
- A. Schulman, Inc. v. Levin, 116 Ohio St.3d 105 (2007) (burden on taxpayer to show error in final determination; deference to BTA findings)
- Stds. Testing Laboratories, Inc. v. Zaino, 100 Ohio St.3d 240 (2003) (reversed only for total absence of probative evidence)
- Olentangy Local Schools Bd. of Edn. v. Delaware Cty. Bd. of Revision, 125 Ohio St.3d 103 (2010) (deference to BTA credibility determinations; standard of review)
- Plain Local Schools v. Franklin Cty. Bd. of Revision, 130 Ohio St.3d 230 (2011) (evidentiary rules guidance in administrative hearings)
- Citizens Fin. Corp. v. Porterfield, 25 Ohio St.2d 53 (1971) (unambiguous principle: substantial evidence standard; probative evidence required)
- United Tel. Co. of Ohio v. Tracy, 84 Ohio St.3d 506 (1999) (administrative evidentiary standards; permissibility of certain evidence)
- Hopkins v. Dyer, 104 Ohio St.3d 461 (2004) (law-of-the-case implications for subsequent petitions)
- Cleveland v. Posner, 193 Ohio App.3d 211 (2011) (documentation underlying agency determinations as prima facie evidence)