FI RST DI VI SI ON

BA RNES, P. J.

, M CM I LLI A N and R EESE, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

http://w w w .ga a ppe a l s .us /r ule s

June 22, 2018



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A 1 8 A 0 5 0 6

. CITY O F D UBLIN SCHOOL DISTRICT v

. M M T

HOLDINGS, LLC et al

.

M C M ILLI A N , J u dg e.

M M T Ho l d i ng s, LLC fi l ed t h i s p u t at i v e cl as s act i o n 1 ag ai n s t t h e Ci t y o f Du b l in

Sch oo l Di s tri ct (“ Sch oo l Di s t ri ct ”) an d Ci t y o f Du b l i n

, Geo rg i a (“ Ci t y ”) (co l l ect i v el y

“ Defen d an t s ”), s eek i ng a refu n d fro m Defen d an ts o f ad v al o rem tax es MM T c ont en d s

wer e i l leg al l y as ses s ed an d u sed b y t h e Sch oo l Di s tri ct t o m eet o b l i g at i o n s n ot

ap p ro v ed b y t h e vo t ers

, as wel l as an i n ju n ct i o n ag ai ns t t h e C i t y t o b ar i t fro m

t ran s ferri n g t he t ax es i t h ad co l l ect ed o v er to th e Sch o o l Di s t ri ct

. MM T fi l ed a m o t i o n

fo r p art i al s u m

m ary ju dg m en t

, as s ert i n g i t was en t i t l ed t o a refu n d o f t he as s es s ed ad

1 M NT fi l ed t h i s p u t at i v e cl as s act i o n l aws u i t i nd i v i d u al l y an d on b eh al f o f t h e

i n d i v i d u al s

, p ers o n s

, co rp orat i o n s

, co m p an i es

, as s o ci at i o n s

, en ti t i es

, an d o t hers wh o

m ay h av e p ai d t he 2 .2 5 m i l l p ro p ert y t ax t h at t h e Ci t y ap p ro ved o n Oct o b er 6

, 2 0 1 6.

Th e p art i es ag reed t o p o s t p o n e ru l i n g o n t h e i s s u e o f cl as s cert i fi cat i o n p en d i n g t h e

t ri al co u rt ’ s ru l i n g o n t h ei r res p ect iv e m o t io n s fo r s um m ary ju dg m en t

, an d it ap p ears

t h at a h eari n g was sch ed u l ed o n t h at i s s u e aft er t h e en t ry o f t he s um m ary ju d g m en t

o rd er t h at i s t h e s u b

ject o f t h i s ap p eal

.v al o rem

t ax i n creas e, an d t h e Sch oo l Di s t ri ct fi l ed a m o t i o n fo r s u m m ary ju d g m en t

arg u i n g

, am o n g o t h er t h i n g s

, t hat th e d oct ri ne o f s o v erei gn im m un i t y b a r s M M T’ s

cl ai m s

. Fo l l o wi n g a h eari n g

, t h e t ri al co urt en t ered an o rd er d en y i n g t h e Sch o o l

D i s t ri ct ’ s m o t i o n fo r s u m m ary ju d g m en t an d g ran ti n g M M T’ s m o t i on

. Th e Sch o o l

Di s t ri ct ap p eal ed to o ur Su p rem e Co u rt

, an d t h e Su p rem e Co u rt t ran s ferred t h e ap p eal

t o t h i s Co u rt

. 2 Becau s e we ag ree M M T’ s cl ai m s ag ai n s t t h e Sch oo l Di s tri ct are b arred

b y s o v erei g n i m

m u n i t y , we n o w rev ers e.

1

. W e t u rn fi rs t t o th e t h res h o l d i s s u e o f s o v erei g n i m m u n i t y

. See Ci t

y o f Tyb ee

Is l a n d v. Ha r r o d

, 3 3 7 Ga. Ap p

. 5 2 3

, 5 2 4 (7 88 SE2 d 1 22 ) (2 0 1 6 ). Ou r law i s wel l

s et t l ed th at s ch o o l d i s t ri ct s are p o l i ti cal s u bd i v i s i o n s o f t h i s St at e an d are p ro t ect ed

b y s o v erei g n i m

m un i t y u n l es s i m

m un i t y is wai ved by an act o f t h e Geo rg ia l eg i s l at u re

o r wi t h i n t h e Geo rg i a Co n st i t ut i o n

. See G a. Co n s t

. o f 1 98 3

, Art

. I, Sec. II, Par. IX (e);

2 Th e Sch o o l Di s t ri ct fi l ed t h i s ap p eal in th e Su p rem e Co u rt p u rs u an t t o t h e Ga.

Co n s t

. o f 1 9 8 3

, Art

. VI, Sec. VI, Para. III (2 ) an d (5 ), wh i ch al l o cat ed to t h e Su p rem e

Co u rt ap p el l at e ju ri s d ict i o n o v er eq u i ty cas es an d cas es i n v o l v i ng ex t rao rd i n ary

rem ed ies “ u n l es s o th erwi se p ro v i d ed b y law[.] ” Th e Su p rem e Co u rt tran s ferred t h e

ap p eal t o t h i s Co u rt p u rs u an t t o t h e Ap p el l at e J u ri s d i ct io n Refo rm Act of 20 1 6

, Ga.

L. 2 0 16

, p

. 8 8 6 § 6 -1 (c) wh i ch

, effect i v e J an u ary 1

, 20 1 7

, t ran s fe r r e d j u ri s d i ct i o n

o v er eq u i t y

cas es an d cas es i nv o l v i n g ex t rao rd i n ary rem ed i es t o t h i s Co u rt

.

2Ga. Co n s t

. o f 1 9 8 3 Art icl e IX, Sect i o n II, Parag rap h IX. 3 Hu n t v. Ci t y o f At la n t a

, 2 4 5

Ga. Ap p

. 2 2 9

, 2 2 9 -3 0 (5 3 7 SE2 d 1 1 ) (2 0 00 ); D a vi s v. Du b l i n Ci t y B d

. o f E d

., 2 1 9 Ga.

Ap p

. 1 2 1

, 1 2 2 (1 ) (4 6 4 SE2 d 2 5 1 ) (1 9 9 5 ); s ee g en eral l y Gi l b er t v. Ri ch ar d s o n

, 2 6 4

Ga. 7 4 4

, 7 4 5 (1 ) (4 5 2 SE2 d 4 76 ) (1 9 9 4 ) (In Geo rg i a, s o v erei g n i m m u n it y “ p ro t ect [s ]

g o v ern m en t s at al l l ev el s fro m u n co n s en t ed -t o l eg al act i o n s .”).

Here, M M T, wh o b ears t h e b u rd en o f es t ab l i s h i n g wai v er, 4 as s e r t s t h at t h e

l eg i s lat u re wai v ed t h e Sch o o l Di s t ri ct ’ s i m m u n it y b y en act i n g OCGA § 48 -5 -3 8 0 (a)

(1 ), wh i ch it co n t en d s en t it l es th em t o s eek a refu n d ag ai n s t t h e Sch o o l Di st ri ct an d

3 Art i cl e I

, Sect i on II, Parag rap h IX (e) o f t h e Geo rg ia Co n st i tu t i o n g ran t s

s o v erei g n i m

m u n i t y t o t he “ s t at e an d al l o f i t s d ep art m en t s an d ag en ci es [wh i ch ] can

o n l y b e w ai v ed b y an Act o f th e Gen eral As s em b l y wh i ch s p eci fi cal l y p ro v i d es t h at

s o v erei g n i m

m u n i t y i s t hereb y

wai v ed an d t h e ex t en t o f s u ch wai v er.”

Art i cl e IX, Sect i o n II, Parag rap h IX o f th e Geo rg i a Co n s t i t u t i on p ro v id es : “ Th e

Gen eral A s s em

b l y m ay wai v e t h e i m

m u n i t y o f co un t i es , m

u n i ci pal i t i es

, an d s ch o ol

d i s t ri ct s b y

l aw.”

It i s n o t n eces s ary fo r u s t o d eci d e wh i ch co n st i tu t i o n al p ro v i s i on ap p l ies t o t h e

i s su e o f wai v er o f i m

m u ni ty fo r a ci t y s ch o o l d i s t ri ct s i n ce u n der t h e fact s o f t h i s cas e

t h e res u l t wo u l d b e t h e s am e u n d er ei t h er p ro v i s i o n

.

4 Ever s o n v. DeKa l b Co u n t

y S ch o ol Di s t.

, 3 4 4 G a. A p p

. 66 5

, 6 6 6 (1 ) (8 1 1 SE2 d

9 ) (2 0 1 8 ) (“ p art y

s eek i n g t o b en efi t fro m

t h e wai v er o f s o v erei g n i m m u n i t y h as t h e

b u rd en t o es t ab l is h wai v er.”) (ci t at io n an d p un ct u at i o n o m i t t ed ); Al b er t s o n v. Ci t y of

Jes u p , 3 1 2 Ga. Ap p

. 2 46

, 2 48 (1 ) & n .9 (7 1 8 SE2 d 4 ) (2 0 11 ) (p art y s eek i n g b en efi t

o f t h e wai v er h as t o es t ab l i s h wai v er an d t h us t ri al co u rt ’ s su b j ect m at ter ju ri s d i ct i o n ).

3t h e Ci t y fo r t h e al l eg ed ly i ll eg al l y as s es s ed tax es

. 5 OCGA § 4 8 -5 -3 8 0 (a) (1 ) p ro v i d es

i n rel ev an t p art

(a) As pro vi d ed i n t h i s Co d e s ect i on

, each co u n ty a n d m u n i ci p a l i t y sh al l

refu n d t o t ax p ay ers an y an d al l t ax es an d l i cen s e fe e s : (1 )W h i ch are

d et erm i ned t o h av e b een erro n eo u s l y o r i l leg al l y as s es s ed an d co l l ect ed

fro m t h e t ax p ay ers u n d er t h e l aws o f t h i s st at e o r u n der t h e res o lu t i o n s

o r o rd in an ces o f an y

co u n t y o r m u n i ci p al i t y [.]

(Em p h as i s ad d ed .) Un d er s u bs e c t io n s (b ) an d (c) o f th at co d e s ect i o n, t h e t ax p ay er

m ay ei th er fi l e a cl ai m fo r refu n d w i t h t h e g ov ern i n g au t h or i t y o f t h e co u n t y o r

m u ni ci p al i ty wi t h i n t he p res cri bed ti m e o r p ro ceed d i rect l y to fi l i n g s u i t

. 6 Th u s

, wh i l e

t h e p l ai n l an g u ag e o f t h e s t at u t e en t i t l es t ax p ay ers t o s eek a refu n d f r o m t h e

g o v ern i n g b o d y o f a co un t y an d m u n i ci p al i t y

, t h e st at u t e s ay s n o th i n g ab ou t fi l i n g s u i t

o r s eek i n g a refu nd fro m a s ch o o l di s tri ct an d d o es no t co n t a i n a n y l a n g u ag e t h at

co u ld b e read as bro ad en i n g th e wai ver o f i m m u n i t y t o en co m

p as s go v ern m en t al

5 M M T arg u ed i n t h e t ri al co u rt an d on ap p eal t h at i t o nl y s o u gh t an i nju n ct i o n

ag ai n s t t h e Ci ty to p recl u d e t he Ci t y fro m p a yi ng ov er t h e co l l ect ed t ax es t o t h e

Sch oo l Di s t ri ct

. As M M T h as ab an d o n ed an y i n ju n ct i v e cl ai m ag ai n s t t h e Sch o ol

Di s t ri ct

, we n eed n o t ad d res s wh et h er s o verei gn i m m u n it y wo u l d b ar an y s u ch cl ai m

.

6 Su bs ect io n (f) ad d i t io nal l y p ro v i des t h at t ax p ay ers are n o t l i m i t ed t o t h e

rem ed ies l i s t ed i n s ub s ect i o n s (b ) an d (c) an d m ay s eek a refu n d u n d er s u b sect i o n (a)

“ b y an y o t her cau se o f act i o n av ai l ab l e at l aw o r eq u i t y .”

4en t i t i es ot h er t h an t h o s e s peci fi cal l y l i st ed

. Cf. Ti f t Co u n ty S

ch o o l Di s t

. v. Ma r t i n ez

,

3 3 1 Ga. Ap p

. 42 3

, 4 2 7 -2 8 (1 ) (7 7 1 SE2 d 1 1 7 ) (2 0 1 5 ) (u se o f p h ras e “ o r a n y o t h er

p o l i t i c a l s u b d i v i s i o n o f t h i s St at e” i n t he s tat u t e wai v ed i m m u n i t y t o go v ern m en t al

en t i t i es o t h er t h an t h o s e s p eci fi cal l y l i s t ed ). M M T p oi n t s t o n o ot h er s t at u t e t h at

wo u l d au t h o ri ze t h e t y

p e o f cl ai m s i t h as as s ert ed ag ai n s t t h e Sch oo l D i s tri ct

, an d we

h av e fo u n d n o n e. A c co rd i n g l y

, t h e Sch o o l Di s t ri ct h as i m m u n it y fro m t h e cl ai m s

as s ert ed ag ai n s t i t

, an d t h e t ri al co urt s h o u ld h av e g ra n t e d t h e Sch o o l Di s t ri ct ’ s

m o ti o n fo r s u m

m ary ju d g m en t

.

2

. In l i gh t o f o u r h o l d i n g i n Di v i si o n 1, i t i s u n n eces s ary fo r u s to ad d res s t h e

Sch oo l Di s tri ct ’ s rem ai n in g co nt en t io n s

. Ho w ev er, we m ak e p l ai n th at n o t h i n g i n t h i s

o p i n i o n i s i n t en d ed t o ad d res s M M T ’s c l a i m s ag ai n s t t he Ci t y as t h e Ci t y d i d n ot

m o ve fo r s u m

m ary ju d g m en t an d i s n o t p art y t o t h is ap p eal

.

Ju d g men t r ever sed . Ba r n es , P. J., a n d

Rees e, J., co n cu r

.

5