Sherman v. Fulton County Board of Assessors
288 Ga. 88
| Ga. | 2010Background
- Sherman petitioned for declaratory judgment, injunction, and mandamus against Fulton County Board of Assessors and chief appraiser over bond-transaction leasehold valuations.
- The Development Authority of Fulton County intervened; Sherman claimed the 50%/ramp-up method undervalues leaseholds and violates constitutions.
- Valuation method tied to bond transactions involved repurchase options and ramp-up formulas affecting ad valorem valuations.
- Trial court dismissed the petition on FCBOA/DAFC motions and Sherman appealed seeking relief and reassessment.
- Georgia law requires fair market valuation; whether the method is arbitrary or unreasonable is a central issue.
- The Delaware? (Note: remove extraneous).
- Court considered whether evidence could establish that the method undervalues leaseholds and whether petition should have been dismissed under OCGA § 9-11-12(b)(6).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the petition states a claim that the valuation method is arbitrary or unreasonable. | Sherman asserts undervaluation of leaseholds. | Appellees contend method is authorized and fair. | Petition survives dismissal; evidence may support claim. |
| Whether OCGA § 36-80-16.1(e) authorizes the challenged valuation method. | Statute supports use of simplified methods. | Statute does not exempt duty to value at fair market value. | Statute does not resolve overriding fair market value issue. |
| Whether Sherman may collaterally attack bond validation proceedings. | Challenge to memoranda of agreement. | Bond validation orders are conclusive and collaterally immune. | Majority permits challenge; not barred by collateral attack. |
| Whether dismissal was improper given potential admissible evidence. | Evidence (expert affidavit) supports Sherman. | Evidence was insufficient to defeat dismissal. | Dismissal reversed; factual issues remain for trial. |
Key Cases Cited
- Southstar Energy Services v. Ellison, 286 Ga. 709 (2010) (standard for de novo review of dismissals; pleadings construed in plaintiff's favor)
- Dougherty County Bd. of Tax Assessors v. Burt Realty Co., 250 Ga. 467 (1983) (valuation questions generally for the trier of fact)
- DeKalb County Bd. of Tax Assessors v. W.C. Harris & Co., 248 Ga. 277 (1981) (valuation methods must be authorized and not arbitrary or unreasonable)
- Smith v. Elbert County Bd. of Tax Assessors, 292 Ga.App. 417 (2008) (valuation methodology must actually result in fair value; not assumed)
- Coweta County Bd. of Tax Assessors v. EGO Products, 241 Ga.App. 85 (1999) (footnote guidance on percentage methods; not authority for real-property valuation here)
- Charlton Development Auth. v. Charlton County, 253 Ga. 208 (1984) (conclusiveness of validation orders; collateral attack restrictions)
- Quarterman v. Douglas County Bd. of Commrs., 278 Ga. 363 (2004) (collateral attack limited to matters actually adjudicated in validation)
- Ambac Indemnity Corp. v. Akridge, 262 Ga. 773 (1993) (preclusion of collateral attacks to protect bond financing)
- Gibbs v. City of Social Circle, 191 Ga. 422 (1940) (collateral attack limitations on bond validation judgments)
- Miller v. Columbus, Georgia, 229 Ga. 234 (1972) (validation proceedings preclude collateral attacks on validated conveyances)