same as to declaratory relief claims in utility tax dispute
How later courts described this case
- same as to declaratory relief claims in utility tax dispute
- involving plaintiffs who sued in California state courts for property tax refund based on the alleged unconstitutionality of the tax
- holding California law provides a “plain, speedy, and efficient remedy” for challenging property taxes
- noting that state courts may entertain § 1983 claims
Written by the judges who cited it.
The opinion
Case 2:21-cv-07722-JLS-KES Document 60 Filed 06/07/22 Page 1 of 3 Page ID #:270
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. 2:21-cv-07722-JLS-KES Date: June 7, 2022
Title: GAMAL SOLOMAN v. ALEX VILLANUEVA, et al.
PRESENT:
THE HONORABLE KAREN E. SCOTT, U.S. MAGISTRATE JUDGE
Jazmin Dorado Not Present
Courtroom Clerk Court Reporter
ATTORNEYS PRESENT FOR ATTORNEYS PRESENT FOR
PLAINTIFF: DEFENDANTS:
None Present None Present
PROCEEDINGS (IN CHAMBERS): Order to Show Cause Why Defendant
Jeff Prang Should Not Be Dismissed for
Lack of Jurisdiction.
In the operative First Amended Complaint (Dkt. 12 [“FAC”]), Plaintiff Gamal Soloman
(“Plaintiff”) alleges two causes of action against Los Angeles County Assessor Jeff Prang for
(1) violations of 42 U.S.C. § 1983 and (2) declaratory relief. (FAC ¶¶ 44-54.) In his § 1983
claim, Plaintiff alleges that Defendant Prang violated his “constitutional rights,” referring to his
rights under the Due Process Clause, Equal Protection Clause, and Privileges and Immunities
Clause, by assessing “inflated, uncalled for, and illegal property taxes” on real property owned,
in part, by Plaintiff. (Id. ¶¶ 45, 48-49.) He seeks a “reduced assessment” and reimbursement for
allegedly over-paid taxes (id. ¶ 45), as well as monetary damages for the “physical and mental
pain and anguish” caused to him by these taxes (id. ¶ 47) and punitive damages based on
Defendant Prang’s “malice, fraud, and oppression” (id. ¶ 50). In his claim for declaratory relief,
Plaintiff seeks a judicial determination and declaration of his right to “an adjustment” of the
property’s assessed value and “reimbursement” of property taxes previously paid. (Id. ¶¶ 51-54).
The Court has a “duty to establish subject matter jurisdiction over [an] action … whether
the parties raised the issue or not.” United Investors Life Ins. Co. v. Waddell & Reed Inc., 360
F.3d 960, 967 (9th Cir. 2004) (accord Rains v. Criterion Sys., Inc., 80 F.3d 339, 342 (9th Cir.
1996); See Fed. R. Civ. P. 12(h)(3). The Tax Injunction Act of 1937 (“TIA”) prohibits federal
courts from exercising jurisdiction over claims that seek to “enjoin, suspend or restrain the
assessment, levy or collection of any tax under State law where a plain, speedy and efficient
Case 2:21-cv-07722-JLS-KES Document 60 Filed 06/07/22 Page 2 of 3 Page ID #:271
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. 2:21-cv-07722-JLS-KES Date: June 7, 2022
Page 2
remedy may be had in the courts of such State.” 28 U.S.C. § 1341. The TIA prohibits district
courts from exercising jurisdiction over claims for declaratory and injunctive relief, claims for
damages in the form of tax refunds, and any claims that may impose “even an indirect restraint
on tax assessment.” Jerron West, Inc. v. State of Cal., State Bd. of Equalization, 129 F.3d 1334,
1335-37 (9th Cir. 1997). Courts have held that California provides its taxpayers with “plain,
speedy and efficient” remedies for property tax disputes as required to invoke the TIA.1 Berry v.
Alameda Bd. of Supervisors, 753 F. Supp. 1508, 1514 (N.D. Cal. 1990) (holding California law
provides a “plain, speedy, and efficient remedy” for challenging property taxes).
Where federal question jurisdiction over a § 1983 action conflicts with the TIA, “the
latter controls. Basing a complaint upon alleged violations of civil rights will not avoid the
prohibitions of the [TIA].” Berry, 753 F. Supp. at 1511 (citations omitted). Thus, the TIA
appears to deprive this Court of subject matter jurisdiction over Plaintiff’s claims against
Defendant Prang insofar as he seeks declaratory relief, injunctive relief, or damages in the form
of tax refunds. See, e.g., Jerron West, 129 F.3d at 1337-38 (applying TIA to find district court
lacked jurisdiction over injunctive relief claims in sales tax dispute); Marvin F. Poer & Co. v.
Ctys. of Alameda, 725 F.2d 1234, 1236 (9th Cir. 1984) (same as to claims for tax refunds and
damages in the amount of taxes paid); City of Burbank v. Nevada, 658 F.2d 708, 706 (9th Cir.
1981) (same as to declaratory relief claims in utility tax dispute).
To the extent that Plaintiff seeks compensatory or punitive monetary damages, it appears
that this Court also lacks jurisdiction over those claims – not by direct application of the TIA, but
by the principle of comity embodied in the TIA. See Fair Assessment in Real Estate Ass’n v.
McNary, 454 U.S. 100 (1981) (affirming dismissal of taxpayers’ § 1983 action to redress the
allegedly unconstitutional administration of a state property tax system where plaintiffs sought
actual and punitive damages). As explained in Fair Assessment, “taxpayers are barred by the
principle of comity from asserting § 1983 actions against the validity of state tax systems in
federal courts. Such taxpayers must seek protection of their federal rights by state remedies,
provided of course that those remedies are plain, adequate, and complete.” Id. at 116. While
comity reflects some of the same concerns that prompted Congress to enact the TIA, it “stands
on its own bottom, and extends to cases seeking monetary damages as well as injunctive or other
1 In California, a taxpayer may petition the County’s Assessment Appeals Board for
review of a locally assessed property tax and any relevant federal claims. See Cal. Rev. & Tax
Code §§ 1601-16. The taxpayer may appeal a negative decision to the County Board of
Supervisors by initiating an action for a tax refund. Id. §§ 5096-5107. If relief is not obtained
through these administrative procedures, the taxpayer may bring an action in state court to
recover the tax, with attorneys’ fees and costs available if the tax assessment was made in
violation of the California Constitution or statutory provisions. Id. §§ 5140-49.5. Importantly,
plaintiffs may raise tax-related § 1983 and constitutional claims in state court. See Martinez v.
California, 444 U.S. 277, 283 n.7 (1980) (noting that state courts may entertain § 1983 claims);
United States v. County of Fresno, 429 U.S. 452, 456 (1977) (involving plaintiffs who sued in
California state courts for property tax refund based on the alleged unconstitutionality of the tax).
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. 2:21-cv-07722-JLS-KES Date: June 7, 2022
Page 3
equitable relief.” Chippewa Trading Co. v. Cox, 365 F.3d 538, 541 (6th Cir.), cert. denied, 543
U.S. 988 (2004).
Therefore, IT IS HEREBY ORDERED that:
1. On or before July 1, 2022, Plaintiff is ordered to show cause why Defendant
Prang should not be dismissed for lack of jurisdiction. Plaintiff can discharge this Order by
doing one of the following:
a. If Plaintiff disagrees with the Court’s above analysis, then he must explain
why the TIA and/or Fair Assessment do not bar his claims in this Court;
b. If Plaintiff agrees that the Court lacks jurisdiction over his claims against
Defendant Prang without prejudice to seeking state remedies, then he must file a
voluntary notice of dismissal as to that Defendant Prang. A copy of Form CV-09
Notice of Dismissal is attached to this Order.
If Plaintiff fails to respond to this Order, the Court will likely dismiss Defendant
Prang for lack of jurisdiction and/or failure to follow Court orders.
Initials of Deputy Clerk JD