Merit Energy Company v. Department of Revenue, State of Wyoming
2013 WY 145
| Wyo. | 2013Background
- Merit Energy was a take-in-kind owner of 2006 Wyoming natural gas production and reported/pay taxes as such.
- DOR sent Merit volumetric-discrepancy notices (Oct. 3, 2007; Mar. 17 and Apr. 24, 2008) giving 60 days to reconcile; Merit did not respond.
- DOR issued assessment letters on Nov. 24, 2008 (and a March 17, 2008 letter) stating additional taxable value would result and expressly calling the letters "final administrative decision[s]" with a 30-day appeal right to the State Board of Equalization (SBOE); Merit did not appeal.
- On June 29, 2010 DOR issued Notices of Valuation Change (NOVCs) to county assessors reflecting the 2008 assessments; Merit received a courtesy copy and appealed the NOVC to the SBOE on July 16, 2010.
- SBOE dismissed Merit’s appeal as untimely for lack of jurisdiction; the district court affirmed. The Supreme Court affirmed, holding the 2008 assessment letters were final administrative decisions and Merit’s later appeal was barred; collateral estoppel would also bar relitigation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether SBOE had jurisdiction because Merit’s appeal was untimely | Merit: 2008 DOR letters were not final administrative decisions, so the 30-day appeal period never started; Merit could appeal the 2010 NOVC | DOR: 2008 letters were final administrative decisions with 30-day appeal period; Merit’s delay deprived SBOE of jurisdiction | Held: 2008 assessment letters were final administrative decisions; Merit failed to appeal within 30 days and SBOE lacked jurisdiction to hear the late appeal |
| Whether the 2008 assessment letters were final agency actions | Merit: Letters used hedging language ("potential") and DOR retained the matter; possibility of amended returns or audits meant they weren’t final | DOR: Context shows letters fixed taxable value increases, expressly labeled final, and left nothing further to be accomplished absent optional events that did not occur | Held: Letters were final — they set the DOR’s conclusive assessments and notified Merit of its 30-day appeal right |
| Whether Merit could appeal the 2010 NOVC despite not appealing 2008 letters | Merit: NOVC is final agency action and taxpayer may appeal it to challenge underlying assessments | DOR: Even if NOVC were appealable, Merit is precluded from relitigating issues previously finalized in the 2008 letters | Held: Even assuming NOVC appealable, collateral estoppel bars Merit from challenging the underlying taxable-value determinations made in 2008 |
| Preclusive effect of prior administrative determinations | Merit: Did not meaningfully contest that res judicata/collateral estoppel apply if earlier decisions were final | DOR: Prior final administrative decisions preclude relitigation under collateral estoppel factors | Held: Collateral estoppel applies — identical issue, prior final decision, same party, and Merit had full opportunity to litigate in 2008 but did not |
Key Cases Cited
- Amoco Prod. Co., 7 P.3d 900 (Wyo. 2000) (agency letter that communicates a final, conclusive allocation decision is appealable as a final determination)
- Board of County Commissioners v. Exxon Mobil Corp., 55 P.3d 714 (Wyo. 2002) (county appeals challenging DOR valuations are limited; NOVC may be the appropriate final action for counties)
- Ebzery v. City of Sheridan, 982 P.2d 1251 (Wyo. 1999) (agency action is final when the record shows nothing further remains to be accomplished)
- Jacobs v. State ex rel. Wyoming Workers’ Safety and Comp. Div., 216 P.3d 1128 (Wyo. 2009) (administrative determinations may have preclusive effect; issue preclusion is appropriate in administrative settings)