Opinion ID: 1828589
Heading Depth: 1
Heading Rank: 4

Heading: Abuse of discretion in declining jurisdiction.

Text: Once having determined that the circuit court and tax appeals commission have concurrent jurisdiction, we consider whether the court abused its discretion in declining jurisdiction. Under the facts of the instant case, the defendant has made a determination that sec. 77.52 (2) (a), Stats., is applicable to plaintiffs' business operations. There is no administrative proceeding under way to establish the validity or constitutionality of such a determination. The doctrine of exhaustion of administrative remedies does not apply where there is no administrative proceeding under way. This court in State v. Dairyland Power Cooperative (1971), 52 Wis. 2d 45, 54, 187 N. W. 2d 878, held: ... The rule of exhaustion contemplates a situation where some administrative action is under way but is as yet uncompleted. Wisconsin Collectors Asso. v. Thorp Finance Corp. (1966), 32 Wis. 2d 36, 47, 145 N. W. 2d 33; United States v. Western Pac. R. Co. (1956), 352 U. S. 59, 77 Sup. Ct. 161, 1 L. Ed. 2d 126; McKart v. United States (1969), 395 U. S. 185, 89 Sup. Ct. 1657, 23 L. Ed. 2d 194; 3 Davis, Administrative Law Treatise, pp. 56-115, secs. 20.01 et seq. The doctrine of exhaustion of administrative remedies, therefore, cannot be applied to the instant case or support the trial court's discretion. However, the trial court was within its discretion to decline jurisdiction under the primary-jurisdiction doctrine. Where there is an absence of any formal proceeding before an agency, which has jurisdiction of the subject matter, the primary-jurisdiction rule applies. Its purpose is to promote proper relations between the courts and administrative agencies. Wisconsin Collectors Asso. v. Thorp Finance Corp., supra . The doctrine determines whether the court or the agency should make the initial determination. State v. Dairyland Power Cooperative, supra . The question under this doctrine, in the instant case, is whether the court or the tax appeals commission should make the initial decision as to the validity or constitutionality of applying sec. 77.52 (2) (a), Stats., to plaintiffs' business. The trial court held that the commission should make the initial determination. This court, in Wisconsin Collectors Asso. v. Thorp Finance Corp., supra, at page 44, stated the test as: ... The standard, in our opinion, should not be power but comity. The court must consider which course would best serve the ends of justice. If the issue presented to the court involves exclusively factual issues within the peculiar expertise of the commission, the obviously better course would be to decline jurisdiction and to refer the matter to the agency. On the other hand, if statutory interpretation or issues of law are significant, the court may properly choose in its discretion to entertain the proceedings. The trial court should exercise its discretion with an understanding that the legislature has created the agency in order to afford a systematic method of fact-finding and policy-making and that the agency's jurisdiction should be given priority in the absence of a valid reason for judicial intervention. Plaintiff does not attempt to show any valid reason for the intervention of the courts. There do exist many factual issues as to the application of sec. 77.52 (2) (a), Stats., to plaintiffs' business operations that fall within the expertise of the tax appeals commission. The legislature has created the tax appeals commission to afford a systematic method of fact-finding and policy formation under the Wisconsin tax laws. Uniform application of our tax laws is an admirable and necessary legislative and administrative goal. The courts should not unnecessarily interject themselves into this process. The trial court did not abuse its discretion in declining jurisdiction in favor of that of the tax appeals commission. By the Court. Judgment affirmed.