Opinion ID: 2353225
Heading Depth: 1
Heading Rank: 4

Heading: Penalties and Late Fees

Text: Grand Hyatt's second claim is that even if this court upholds the trial court's interpretation of the statute with respect to the attrition fee, the trial court erred by failing to address its argument that it should not be required to pay the interest and late payment penalties imposed by the District. Specifically, the hotel requested that the trial court invoke its powers of equity to reduce the total assessment by striking the penalties and interest because its failure to pay taxes on attrition fees was based on a reasonable interpretation of the sales tax statutes. The District responds that only the Mayor of the District of Columbia, pursuant to D.C.Code § 47-2024(1)(B), is authorized and empowered to compromise dispute[d] claims in connection with the tax hereby imposed[.] Although this is an open question, we need not decide the issue here because even assuming, solely for the sake of argument, that the trial court has equitable jurisdiction to compromise tax claims, we are satisfied that the trial court did not err in declining to exercise its equitable jurisdiction in this case. It is axiomatic that equity has no jurisdiction over a controversy for which there is a complete and adequate remedy at law. Further, if it appears that the absence of a remedy at law is due to plaintiff's failure to pursue that remedy, then equity will not intervene and the complaint should be dismissed. Marshall v. District of Columbia, 458 A.2d 28, 29-30 (D.C.1982) (internal citations and quotations omitted). In this case, the hotel has an adequate remedy at law. By statute, the hotel is permitted the opportunity to challenge OTR's tax assessment. See D.C.Code § 47-3303. In fact, the hotel sought this remedy and it failed to establish its legal claims before the trial court. See Ross v. Hacienda Coop., Inc., 686 A.2d 186, 192 (D.C.1996) (Wagner, C.J., dissenting) (stating that equity may not intervene where the movant failed to establish its legal claims). In addition, the hotel also has the right to request that the Mayor reduce the total assessment by either waiving or reducing the interest and penalties, pursuant to D.C.Code § 47-2024. We take care to emphasize that not only was this legal avenue available to the hotel, but that the Mayor, through OTR, actually offered to compromise the penalties and interest after the administrative decision was rendered in this casean offer that the hotel rejected. In light of these circumstances, this court is satisfied that the trial court did not err in choosing not to exercise its equitable jurisdiction in a case where the party before it had an adequate legal remedy, one that was offered, but rejected by the party that now seeks the court's shelter in equity. Accordingly, for the foregoing reasons, the judgment of the trial court is hereby Affirmed.