Hershey Chocolate of Virginia, Inc. v. Augusta County

92 Va. Cir. 141, 2015 Va. Cir. LEXIS 205
CourtAugusta County Circuit Court
DecidedAugust 21, 2015
DocketCase No. CL14002172-00
StatusPublished

This text of 92 Va. Cir. 141 (Hershey Chocolate of Virginia, Inc. v. Augusta County) is published on Counsel Stack Legal Research, covering Augusta County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hershey Chocolate of Virginia, Inc. v. Augusta County, 92 Va. Cir. 141, 2015 Va. Cir. LEXIS 205 (Va. Super. Ct. 2015).

Opinion

By

Judge Victor V. Ludwig

On December 12, 2014, Hershey Chocolate of Virginia, Inc. (Hershey), filed its Application for Relief from Erroneous Assessment of Real Property Taxes (the Application), asking that the Court correct the assessment for the year 2014 on its real estate in Stuarts Draft, Virginia (the Property). On December 31, 2014, the defendant, Augusta County, filed a Demurrer, or in the alternative, a Motion for a Bill of Particulars (the MBOP). These two responses were filed as a single pleading, but because they address different issues, I will treat them as discrete pleadings.

Related to those pleadings, but raising different issues, are Hershey’s Motion for Leave To Amend the Application (the Motion To Amend), which included a request for reimbursement of fees and costs related to its having to file the Motion To Amend.

In support of their various pleadings, Hershey filed a Memorandum in Opposition to the Demurrer (Hershey’s Memo), and the County filed a [142]*142Memorandum in Support of the Demurrer, or in the alternative, Motion for a Bill of Particulars, and in Opposition to Plaintiff’s Motion for Leave To Amend (the County’s Memo).

The parties argued the issues on June 16, 2015.

I. Demurrer

To put the Demurrer in context, it is helpful to ascertain what Hershey has to prove and then to determine if it has alleged facts sufficient to support the necessary components of its claim. Hershey’s claim is grounded in Va. Code Ann. § 58.1-3984, which affords a taxpayer the opportunity file a petition in the circuit court asking for relief from an assessment. Specifically, with respect to the case which Hershey has filed (which involves real estate), the statute provides, in part:

[T]here shall be a presumption that the valuation determined by the assessor or as adjusted by the board of equalization is correct. The burden of proof shall be on the taxpayer to rebut such presumption and show by a preponderance of the evidence that the property in question is valued at more than its fair market value or that the assessment is not uniform in its application, and that it was not arrived at in accordance with generally accepted appraisal practices, procedures, rules, and standards as prescribed by nationally recognized professional appraisal organizations such as the International Association of Assessing Officers (1AAO) and applicable Virginia law relating to valuation of property ....

Va. Code Ann. § 58.1-3984(B). The burden is stated in the conjunctive; the taxpayer must rebut the presumption and “show” certain things. As a practical matter, if the taxpayer shows those things on the far side of the conjunction, it does rebut the presumption. In order to properly plead a case pursuant to the statute, Hershey must allege facts sufficient to support the claims: (1) that the property is valued at more than its fair market value, or (2) that the assessment is not uniform, and, in either event, (3) that the value or the assessment was not arrived at in accordance with generally accepted appraisal practices.

My conclusion as to what the taxpayer must prove appears to be different from the holding in West Creek Assoc., L.L.C. v. County of Goochland, 276 Va. 393 (2008), but that case was decided on the basis of the statute as it was prior to its amendment in 2011. In my opinion, expressed in Staunton Mall Realty Management, L.L.C. v. Augusta County Board of Supervisors, Case No. CL13002412-00, I concluded that the statute significantly impacted the West Creek decision in one particular — the requirement to prove that [143]*143the value or the assessment was not arrived at in accordance with generally accepted appraisal practices.

A. Summary of Facts and Inferences from the Application

Addressing only the specific weaknesses that the County asserts are the basis of its demurrer, Hershey alleges that:

a. Its plant was originally built in 1982. (App. ¶ 5.)

b. The Property consists of 305.944 acres. (App. ¶ 6.)

c. “The values of large manufacturing plants similar in age and size to the [Property] have been predominantly stagnant or declining for nearly twenty years ... [as a] result of numerous competitive market factors in the global economy.” (App. ¶ 7.)

d. “[M]any domestic manufacturers have consolidated and/or closed ... or have relocated manufacturing operations outside the United States.” (Id.)

e. “[Available manufacturing properties exceeds demand, placing negative pressure on the market value of manufacturing properties, particularly older and larger limited use manufacturing properties located in rural areas.” (Id.)

f. “The true fair market value of the Property was no greater than $15,000,000 for the 2014 tax year, with the exact amount to be proved at trial.” (App. ¶ 9.)

g. The County assessed the Property at $31,698,200 for the 2014 tax year. (App. ¶ 10.)

h. “In addition to assessing the Property at a value substantially greater than fair market value, the County’s assessment of the Property is not uniform in its application. Moreover, the County committed manifest error by employing improper appraisal methodologies and/or totally disregarded controlling evidence in making the assessment.” (App. ¶ 11.)

For the purposes of this motion, the Court accepts as true the material facts that Hershey has pleaded as well as facts that are fairly implied or inferred from its allegations. See, e.g., Fox v. Custis, 236 Va. 69, 71 (1988).

B. Standardfor Review of the Demurrer

A demurrer tests whether a complaint states a sufficient basis to establish a cause of action for which relief can be granted. Grossmann v. Saunders, 231 Va. 113, 119 (1989). In addition, a demurrer does not test the strength of the proof, but the legal sufficiency of the facts alleged in the pleadings. Eagle Harbor, L.L.C. v. Isle of Wight Cnty., 271 Va. 603, 611 (2006). “A demurrer admits the truth of all properly pleaded material facts,” and “[a]ll reasonable factual inferences fairly and justly drawn from the facts alleged must be considered in aid of the pleading.” Kellermann v. McDonough, 278 Va. 478, 484 (2009). However, “a demurrer does not admit the correctness of the pleader’s conclusions of law.” Fox, 236 Va. at 71 (1988) (citations [144]*144omitted). As long as the complaint contains sufficient allegations to inform a defendant of the nature and character of the claim, it is unnecessaty for the pleader to descend into statements giving details of proof. CaterCorp, Inc. v. Catering Concepts, Inc., 246 Va. 22, 24 (1993) (citation omitted). At the same time, to survive a demurrer, a pleading must be made with “sufficient definiteness to enable the court to find the existence of a legal basis for its judgment.” Eagle Harbor, L.L.C., 271 Va. at 611 (quoting Moore v. Jefferson Hosp., Inc., 208 Va. 438, 440 (1967)). And, where the plaintiff’s allegations, if true, are sufficient to state a cause of action, the demurrer should be overruled. CaterCorp, 246 Va. at 29.

C. Bases for the Demurrer and Analysis

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Bluebook (online)
92 Va. Cir. 141, 2015 Va. Cir. LEXIS 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hershey-chocolate-of-virginia-inc-v-augusta-county-vaccaugusta-2015.