Jardín De Las Catalinas Ltd. Partnership v. Joyner
766 F.3d 127
1st Cir.2014Background
- Plaintiffs own Puerto Rico apartment projects eligible for low-income housing tax credits under I.R.C. §42 and agreements with PRHFA setting an 8.12% applicable percentage.
- HERA amended §42 to set a 9% floor, potentially increasing credits; PRHFA allocated based on pre-HERA figures.
- In April 2010, PRHFA delivered 8609 forms showing 9% and unit-by-unit credits, but reduced qualified bases to match the old total, resulting in no additional credits.
- Plaintiffs signed and submitted the 8609 forms to the IRS on April 15, 2010, reflecting the stated allocations.
- Plaintiffs alleged a “seizure” of credits under HERA; PRHFA confirmed its calculations in Nov. 2010; plaintiffs filed suit April 19, 2011 seeking relief under 42 U.S.C. §1983.
- District court granted judgment on the pleadings, finding time-bar and lack of cognizable property interest; this appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the action is time-barred by the statute of limitations. | Jardín argues accrual delayed by discovery rule. | Joyner argues accrual occurred when injury occurred, April 15, 2010. | Action time-barred; accrual occurred April 15, 2010. |
| Whether the discovery rule tolls accrual here. | Discovery rule tolled accrual due to complexity and concealment. | Rule not applicable; facts existed by April 15, 2010. | Discovery rule not applicable. |
| Whether equitable tolling salvages plaintiffs’ claim. | Equitable tolling should apply due to agency concealment. | No exceptional circumstances; delay due to plaintiffs’ own inaction. | Equitable tolling denied. |
Key Cases Cited
- Wilson v. Garcia, 471 U.S. 261 (U.S. 1985) (borrowing state statute of limitations for §1983 actions)
- Rivera-Muriente v. Agosto-Alicea, 959 F.2d 349 (1st Cir. 1992) (discovery rule and accrual for §1983 actions)
- Kubrick v. United States, 444 U.S. 111 (U.S. 1979) (discovery rule applies when facts of causation are unknown or controlled by defendant)
- Rivera-Muriente v. Agosto-Alicea, 959 F.2d 349 (1st Cir. 1992) (discovery rule and accrual for §1983 actions (duplicate entry to emphasize relevance))
- McIntyre v. United States, 367 F.3d 38 (1st Cir. 2004) (discusses accrual and discovery concepts in §1983 context)
- Vistamar, Inc. v. Fagundo-Fagundo, 430 F.3d 66 (1st Cir. 2005) (accrual timing for injury cases)
- Hayman v. Comm'r, 992 F.2d 1256 (2d Cir. 1993) (constructive knowledge of tax filings; not a basis to delay accrual)
- Greer v. Comm'r, 595 F.3d 338 (6th Cir. 2010) (taxpayer deemed to know contents of filings; no discovery tolling)
- Kelley v. NLRB, 79 F.3d 1238 (1st Cir. 1996) (equitable tolling available only in exceptional circumstances)