Host International, Inc. v. Clayton County
311 Ga. App. 414
| Ga. Ct. App. | 2011Background
- Host holds a usufruct in property at Hartsfield-Jackson Atlanta International Airport leased to Host to operate concessions; the City of Atlanta owns the property and it is located outside the municipality’s territorial limits.
- Host paid ad valorem taxes to Clayton County for 1999-2005 and seeks a tax refund arguing usufruct is not taxable and that OCGA § 6-3-21 is unconstitutional.
- County moved to dismiss alleging collateral estoppel based on a prior related case (Host I) involving a different tax year.
- The trial court granted summary judgment in favor of the county, treating the motion as one under summary judgment due to matters outside the pleadings.
- Host appeals arguing that the prior case did not decide the constitutional issue on its merits and thus does not preclude this litigation.
- Georgia Court of Appeals vacates the judgment and remands, holding the prior decision did not resolve the constitutionality issue and collateral estoppel does not apply to bar later challenges.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does collateral estoppel bar Host's constitutional challenge? | Host | County | Not barred; collateral estoppel does not apply |
| Did Host I adjudicate the constitutionality of OCGA § 6-3-21 on the merits? | Host | County | No, ruling was obiter on timeliness and not a merits adjudication |
| Is the constitutional issue identical to the issue of taxability previously decided? | Host | County | No; constitutionality differs from mere application of the statute |
Key Cases Cited
- Waldroup v. Greene County Hosp. Auth., 265 Ga. 864 (1995) (collateral estoppel requires actual decision on the issue)
- Fitzpatrick v. Harrison, 300 Ga.App. 672 (2009) (summary judgment when court considers extra-pleadings materials)
- 10950 Retail v. City of Johns Creek, 299 Ga.App. 458 (2009) (collateral estoppel not bar where constitutional issue not litigated earlier)
- Neeman v. Commissioner of Internal Revenue, 255 F.2d 841 (2d Cir. 1958) (statutory interpretation vs. constitutional challenge distinction)
- Thomas County Bd. of Tax Assessors v. Thomasville Garden Center, 277 Ga.App. 591 (2006) (collateral estoppel in tax disputes and related principles)