Robbie Perry v. Coles County, Illinois
906 F.3d 583
7th Cir.2018Background
- Plaintiffs Robbie J. Perry and James Rex Dukeman own commercial/industrial parcels in Mattoon Township and sued Coles County under 42 U.S.C. § 1983 alleging an Equal Protection violation because Coles County reassessed only Mattoon Township commercial/industrial properties for the 2016 tax year while relying on older assessments elsewhere.
- The county-wide reassessment raised Mattoon commercial assessed value by ~25% and industrial by ~21% for 2016; other townships’ assessed values remained unchanged.
- Plaintiffs sought class relief: damages (refunds), declaratory judgment, and an injunction requiring county-wide reassessments and redoing Mattoon assessments used for 2016.
- Coles County moved to dismiss for lack of jurisdiction; the district court dismissed Plaintiffs’ amended complaint based on the comity doctrine and entered judgment for the County. Plaintiffs appealed.
- The Seventh Circuit affirmed, concluding federal courts should abstain under the comity doctrine (rather than reach the merits or separately resolve Tax Injunction Act applicability) because adequate state remedies exist and the requested relief would interfere with state tax administration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal court may hear § 1983 challenge to state property tax assessments | Perry: federal suit is proper to remedy unequal assessment process (procedural irregularity) and obtain injunction/damages | Coles County: comity/TIA bar federal adjudication; state courts are the proper forum | Court: abstain under comity; dismissal affirmed |
| Whether Illinois state remedies are adequate (plain, speedy, complete) | Perry: state courts won’t provide complete equitable relief for procedural errors; class-action prohibition and need for injunction make state remedies inadequate | Coles County: state remedies (Board of Review, PTAB, circuit court) are adequate; plaintiffs can get damages/refunds via state process | Court: state remedies are adequate; equitable relief not warranted absent lack of law authorization or exemption |
| Whether Tax Injunction Act (TIA) independently bars suit | Perry: (challenge framed) seeks relief but focused on process; argued TIA may not apply | Coles County: TIA and comity bar suit | Court: did not decide TIA; dismissed on comity grounds (consistent with Supreme Court practice) |
| Whether requested relief would intrude on state tax administration | Perry: relief would not disrupt tax collection and would actually increase taxes on others | Coles County: relief (refunds, re-assessment, injunctive relief) would encroach on County’s tax administration | Court: even relief that would increase other taxpayers’ burdens interferes with state tax administration; abstention proper |
Key Cases Cited
- Levin v. Commerce Energy, Inc., 560 U.S. 413 (2010) (comity can justify dismissal without resolving TIA).
- Fair Assessment in Real Estate Ass’n, Inc. v. McNary, 454 U.S. 100 (1981) (federal courts should not grant damages or injunctions under § 1983 to challenge state tax systems; state remedies required).
- Capra v. Cook Cty. Bd. of Review, 733 F.3d 705 (7th Cir. 2013) (applying Fair Assessment to bar § 1983 challenges to state tax assessments when state remedies are adequate).
- Cosgriff v. County of Winnebago, 876 F.3d 912 (7th Cir. 2017) (Illinois procedures for challenging property tax assessments satisfy comity’s adequacy requirement).
- Rosewell v. LaSalle Nat’l Bank, 450 U.S. 503 (1981) (federal jurisdiction under TIA context may be appropriate where state-court remedy would require multiplicity of suits).
- Pennhurst State Sch. & Hosp. v. Halderman, 465 U.S. 89 (1984) (federal courts lack power to order state officials to comply with state law).