Crowe v. Bio-Medical Application of Louisiana, LLC

208 So. 3d 473
CourtLouisiana Court of Appeal
DecidedJune 3, 2016
DocketNos. 2014 CA 0917, 2014 CA 0918
StatusPublished
Cited by9 cases

This text of 208 So. 3d 473 (Crowe v. Bio-Medical Application of Louisiana, LLC) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crowe v. Bio-Medical Application of Louisiana, LLC, 208 So. 3d 473 (La. Ct. App. 2016).

Opinions

WHIPPLE, C.J.

lain this suit for declaratory judgment regarding whether the purchases of certain prescription drugs are subject to local sales taxes, defendant, BioMedical Applications of Louisiana, LLC (“Bio-Medical”), appeals . the district court’s judgment, which: granted in part the motion for summary judgment filed by the Sheriff of Washington Parish, declaring that BioMedical was not entitled to a sales tax exclusion or a sales tax exemption for the purchases at issue and was not entitled to a refund pursuant to LSA-R.S. 47:315.3 as to sales taxes paid on those purchases during the tax period at issue; denied the motion for partial summary judgment filed by BioMedical; and dismissed Bio-Medical’s reconventional demand for declaratory judgment relief.1

While this appeal was pending, this court ex proprio motu issued a show cause order, ordering the parties to show cause by briefs as to whether the district court had subject matter jurisdiction over this matter.

Finding that the district court below had subject matter jurisdiction, we recall the show cause order. And, for the reasons below, we affirm.

FACTS AND PROCEDURAL HISTORY

Bio-Medical is a limited liability company doing business in Washington Parish under the name Fresenius Medical Care Franklinton, where it operates a dialysis facility. Through correspondence dated December 18, 2009, Bio-Medical submitted a Claim for Refund for Washington Parish sales taxes in the amount of $33,201.48, which it contended it had erroneously paid for the period of January 1, 2006 through [477]*477October 31, 2009 (“the tax period”). BioMedical contended that it regularly | ¡¡purchases and administers certain prescription drugs, including Epogen, Calci-jex, Zemplar, and Venofer, to patients suffering from End-Stage Renal Disease (“ESRD”) and that the purchases -of those drugs are exempt or excluded from local taxation to the extent that the drugs are administered to Medicare patients treated at its Franklinton dialysis facility. BioMedical ' asserted that LSA-R.S. 47:301(10)(u) provides a broad exclusion from local taxes for sales of tangible personal property made “under the provisions of Medicare” and, further, that LSA-R.S. 47:337.9(F) provides an exemption from local sales tax for prescription drugs purchased “through or pursuant to a Medicare Part B and D plan.” Accordingly, BioMedical contended that it was entitled to a refund for the sales taxes it paid on these prescription drugs administered to its Medicare patients.2

In response to the refund claim, the Sheriff filed the instant Petition for Declaratory Judgment, seeking a declaration that Bio-Medical was not entitled to a refund for the tax period under the provisions of LSA-R:S. 47:315.3 (which provides for . a refund of taxes on sales “paid by or under the provisions of Medicare”), LSA-R.S. 47:301(10)(u) (which, as stated above, excludes from local taxation sales of tangible personal property made “under the provisions of Medicare”), or LSA-R.S. 47:337.9(F) (which, as stated above, exempts from local sales tax prescription drugs purchased “through or pursuant to a Medicare Part B and D plan”). The'Sheriff also sought a declaration that Bio-Medical was not entitled , to a refund of taxes paid | voluntarily and not under protest under the provisions ’ of LSA-R.S. 47:337.77.3

After filing and then withdrawing various 'exceptions, Bio-Medical answered and reconvened against the Sheriff, seeking a judgment declaring its rights and liabilities with respect to the tax exclusions set forth in LSA-R.S. 47:301(10)(u), and LSA-R.S. 47:301(10)(a)(ii) (which excludes from taxation sales made for the purpose of resale), the refund provision contained -in LSA-R.S. 47:315.3, and the tax exemption set forth in LSA-R.S. 47:337.9(F).4

[478]*478Thereafter, the Sheriff filed a motion for summary judgment, seeking a declaratory judgment as prayed for in his petitions (as to both Bio-Medical and ABC) and, further, seeking dismissal of Bio-Medical’s (and ABC’s) reconventional demand. BioMedical (and ABC) also filed a motion for partial summary judgment, seeking a declaration that Bio-Medical’s purchases of certain prescription drugs from ABC that it administered to ESRD Medicare patients during the tax period of March 1, 2007 through | ¡^December 31, 2009, were excluded from Washington Parish sales and use taxes under LSA-R.S. 47:301(10)(u) and exempt from local sales tax under LSA-R.S. 47:337.9(F).

A hearing on the cross motions was conducted on May 2, 2013, and thereafter, the district court rendered judgment, dated September 9, 2013, as follows:

IT IS ORDERED, ADJUDGED AND DECREED that there be judgment herein in favor of Plaintiff GRANTING the motion for summary judgment filed by the Sheriff and DENYING the motion for partial summary judgment filed by Bio-Medical, and DECLARING that Bio-Medical is not entitled to an exclusion under La.R.S. 47:301(10)(u), nor an exemption under La.R.S. 47:337.9(F), nor a refund under La.R.S. 47:315.3 as to sales taxes that were charged by AmerisourceBergen Drug Corporation (“ABC”) to and collected from Bio-Medical and remitted to the Sheriff on sales of prescription drugs by ABC to Bio-Medical at the kidney dialysis facility operated by BioMedical in Washington Parish during the period January 1, 2006 t[h]rough October 31, 2009.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the Sheriffs prayer for a declaration that Bio-Medical is not entitled to a refund under La.R.S. 47:337.77 is DENIED.
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the re-conventional demand filed by Bio-Medical for refund pursuant to La.R.S. 47:315.3 is hereby DISMISSED, with prejudice.[5]

From this judgment, Bio-Medical appeals, contending that the district court erred in:

(1) Granting the Sheriffs Motion for Summary Judgment;
(2) Denying Bio-Medical’s Motion for Partial Summary | f;Judgment;6
(3) Declaring that the prescription drug purchases are not excluded from sales tax under LSA-R.S. 47:301(10)(u);
[479]*479(4) Declaring that the prescription drug purchases are not exempt from sales tax under LSA-R.S. 47:337.9(F);
(5) Disregarding the expert testimony of Dr. Hugh Long; and
(6) Failing to admit into evidence the CMS Regulations, CMS Interpretive Guidance, CMS Clinical Performance Measures, and other CMS documents submitted by Bio-Medical.

SHOW CAUSE ORDER

By show cause order dated April 4, 2016, this court directed the parties to address by briefs whether subject matter jurisdiction was appropriate in the district court below. We will address the show cause order first.

Subject matter jurisdiction is the legal power and authority of a tribunal to adjudicate a particular matter involving the legal relations of the parties and to grant the relief to which the parties are entitled. LSA-C.C.P. arts. 1 and 2. A judgment rendered by a court without subject matter jurisdiction is void. LSA-C.C.P. art. 3.

Jurisdiction over the subject matter cannot be conferred by consent of the parties. LSA-C.C.P. art. 3.

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208 So. 3d 473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crowe-v-bio-medical-application-of-louisiana-llc-lactapp-2016.