946 F. Supp. 2d 725
S.D. Ohio2013Background
- Putative class action alleging Gahanna’s Form 37 miscalculates the 83-1/3% credit, causing overpayments 2008–2011; Defendants are City of Gahanna, Jennifer Teal, and RITA; case removed from state court based on federal questions; claims include declaratory, takings (state and federal), §1983, injunctive relief, unjust enrichment, and strict liability; Court reviews 12(c) motions and excludes Teal affidavit; Court grants dismissal of federal claims and remands state-law claims; Gahanna City Code imposes 1.5% tax with a credit against outside taxes; Form 37 allegedly understates the credit under §161.18; Counts 4, 8, 9 remain state-law claims at issue for remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Fifth Amendment takings claim is cognizable. | LaBordes claim a taking due to misapplied credit. | Taxation and miscalculation do not constitute a per se taking. | Takings claim dismissed; no cognizable taking. |
| Whether Count 5 can be maintained as a Bivens or §1983 claim. | Count 5/§1983 seeks relief for taken property. | Fifth Amendment takings not cognizable; §1983 claim duplicative. | Count 5 treated as §1983 claim but fails as takings theory; dismissed. |
| Whether Count 6 §1983 claim survives. | Claims deprivation under color of law. | Dependent on invalid takings theory. | Dismissed for lack of a valid constitutional deprivation. |
| Whether injunctive relief is barred by the Tax Injunction Act. | Seeks to enforce correct application of City Code, not avoiding taxes. | TIA bars federal court injunctions challenging state/local tax administration. | TIA bars injunctive and declaratory relief; counts 1–3 and 7 dismissed. |
| Whether the court should exercise supplemental jurisdiction over remaining state-law claims. | Keep state-law claims in federal court. | Declining jurisdiction appropriate after federal claims are dismissed. | Declines supplemental jurisdiction; remands state-law claims. |
Key Cases Cited
- Norman v. United States, 429 F.3d 1081 (Fed.Cir.2005) (taxation not per se taking)
- United States Shoe Corp. v. United States, 296 F.3d 1378 (Fed.Cir.2002) (taxation not per se taking)
- Branch v. United States, 69 F.3d 1571 (Fed.Cir.1995) (taxes are not per se takings)
- United States v. Sperry Corp., 493 U.S. 52 (1989) (money not private property occupation by government; takings context)
- Hibbs v. Winn, 542 U.S. 88 (Supreme Court 2004) (TIA scope and federal intervention in tax matters)
- Adickes v. S.H. Kress & Co., 398 U.S. 144 (Supreme Court 1970) (elements of § 1983 claim)
- Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343 (1988) (factors for supplemental jurisdiction)
- Fox v. Brown Memorial Home, 761 F.Supp.2d 718 (S.D.Ohio 2011) (factors governing supplemental jurisdiction)
- Wee Care Child Ctr. v. Lumpkin, 680 F.3d 841 (6th Cir.2012) (standards for Rule 12(c) consideration)