Tax Injunction Act Bars Court From Action In New York

Homeowner is barred relief by Tax Injunction Act in New York

MARTIN BOUCHARD, Plaintiff, v. CLINTON COUNTY, NEW YORK, and JANET DUPREY,
in her Individual Capacity and in her Official Capacity as Clinton County Treasurer, Defendants.

Case Law
8:06-cv-418
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF NEW YORK
2006 U.S. Dist. LEXIS 22937

April 25, 2006, Decided

Facts: Plaintiff claims that he received no tax bill from Clinton County for at least two years before October 2004. On February 23, 2005, Defendants entered an order of default judgment against Plaintiff with the Clinton County Clerk. The order was signed by County Judge Patrick McGill on February 15, 2005. Plaintiff received no notice from Clinton County that his property had been taken by default. Defendants did not attempt to serve the default judgment upon Plaintiff.

In May 2005, Plaintiff saw a brochure indicating that his property was to be sold at an auction. Plaintiff then went to the County Clerk to pay his back taxes. Defendant Janet Duprey informed Plaintiff that it was too late to pay any arrears in taxes and that the County now owned the property. Plaintiff claims he remains willing to pay the back taxes.

Plaintiff files an action pursuant to 42 U.S.C. § 1983 claiming that he was deprived of his property without due process of law because Defendants did not provide him with adequate notice of the foreclosure proceeding against him.

Issue: Was there denial of due process?

Ruling: No. Although the landowner was willing to pay his taxes, the suit was barred by the Tax Injunction Act, 28 U.S.C.S. § 1341. The landowner was effectively contesting the collection of state property taxes and asking the court to interfere with the state's ability to collect such taxes. In addition, the court found that the landowner's claims were barred by res judicata because the constitutional issues were raised in his motion to vacate the default judgment of foreclosure.

Lesson Learned:The Tax Injunction Act provides that district courts shall not enjoin, suspend or restrain the assessment, levy or collection of any tax under state law provided there is available a "plain, speedy and efficient remedy" in state court. 28 U.S.C.S. § 1341. A state provides an adequate remedy if there is an avenue available for a full hearing and judicial determination at which the party may raise its claims.

Written by Kevin Levonas and Jerry L.