Loretta Brehm Versus John ("johnny") I. Shaddinger, Jr. and Jon Gegenheimer, in His Official Capacity as Clerk of Court for the Parish of Jefferson, State of Louisiana

Louisiana Court of Appeal·Decided February 10, 2021·No. 21-CA-59·Unknown

Opinion

LORETTA BREHM NO. 21-CA-59 VERSUS FIFTH CIRCUIT

JOHN (“JOHNNY”) I. SHADDINGER, JR. COURT OF APPEAL AND JON GEGENHEIMER, IN HIS OFFICIAL CAPACITY AS CLERK OF COURT FOR THE STATE OF LOUISIANA PARISH OF JEFFERSON, STATE OF LOUISIANA

ON APPEAL FROM THE TWENTY-FOURTH JUDICIAL DISTRICT COURT PARISH OF JEFFERSON, STATE OF LOUISIANA NO. 814-370, DIVISION "G"

HONORABLE E. ADRIAN ADAMS, JUDGE PRESIDING

February 10, 2021

12:05 pm

JUDE G. GRAVOIS

JUDGE

Panel composed of Judges Susan M. Chehardy, Fredericka Homberg Wicker, and Jude G. Gravois

REVERSED AND RENDERED JGG SMC FHW

COUNSEL FOR PLAINTIFF/APPELLANT, LORETTA BREHM Stephen M. Gele

COUNSEL FOR DEFENDANT/APPELLEE, JOHN I. SHADDINGER, JR.

G. Karl Bernard

GRAVOIS, J.

In this candidate challenge suit, plaintiff Loretta Brehm appeals the trial court’s February 4, 2021 judgment which denied Ms. Brehm’s petition objecting to the candidacy of John (“Johnny”) I. Shaddinger, Jr. for the office of Council Member, District 1, City of Westwego, Parish of Jefferson, Louisiana, in the upcoming March 20, 2021 election. The trial court ruled that Mr. Shaddinger is properly qualified as a candidate for the subject council seat. In her verified petition objecting to Mr. Shaddinger’s candidacy, Ms. Brehm contended that Mr. Shaddinger does not qualify for said elective office because he “failed to file state taxes in 2019.” For the reasons that follow, we reverse the judgment of the trial court. We find that Mr. Shaddinger did not rebut Ms. Brehm’s prima facie case by failing to present sufficient evidence that he was not required to file a state income tax return for 2019 as certified in his Notice of Candidacy. Additionally, Mr. Shaddinger did not present sufficient evidence that he was not required to file for an extension of time to file his 2019 state income tax return. Accordingly, John (“Johnny”) I. Shaddinger, Jr. is disqualified as a candidate for the office of Council Member, District 1, City of Westwego, Parish of Jefferson, Louisiana, in the upcoming March 20, 2021 election. The Secretary of State of the State of Louisiana shall be served with a certified copy of this opinion and is ordered to remove John (“Johnny”) I. Shaddinger, Jr. from the ballot of this election.

FACTS AND PROCEDURAL BACKGROUND On January 20, 2021, John (“Johnny”) I. Shaddinger, Jr. filed a sworn Notice of Candidacy with the Jefferson Parish Clerk of Court, declaring his intent to run for the office of Council Member, District 1, City of Westwego, Parish of Jefferson, Louisiana. In the Notice of Candidacy form, Mr. Shaddinger certified that “[i]f I am a candidate for any office other than United States senator or representative in congress, that for each of the previous five tax years, I have filed

my federal and state income tax returns, have filed for an extension of time for filing either my federal or state income tax return or both, or was not required to file either a federal or state income tax return or both.” (Emphasis added.)

On January 29, 2021, plaintiff, Loretta Brehm, filed a verified petition objecting to the candidacy of Mr. Shaddinger, contending that he falsely certified in his Notice of Candidacy that he filed his state income tax return for the year 2019. Ms. Brehm alleged that the Louisiana Department of Revenue could not confirm that Mr. Shaddinger filed his state income tax return for 2019.

Trial on the matter was held on February 3, 2021.

At trial, Ms. Brehm called Mr. Shaddinger as a witness in her case-in-chief.

During questioning, Mr. Shaddinger testified that although he filed a United States federal income tax return for 2019 jointly with his wife, he did not file a Louisiana income tax return for 2019. He testified that he had approximately $50,000 in earned income during 2019, none of which was exempt from federal income tax, and had received approximately $11,000 in social security benefits during 2019. He stated that he intended to file a Louisiana income tax return for 2019, but has not yet done so.

During questioning by his counsel, Mr. Shaddinger identified a document, marked as Defendant’s Exhibit 1, as being a copy of his 2019 federal income tax return. He stated that this return was mailed to the Internal Revenue Service on May 13, 2020. He testified that he was entitled to a refund under his federal income tax return and that he actually did receive a refund for 2019. Mr. Shaddinger testified that he did not file a state income tax return for 2019 because he was not required to. When asked, “Why do you believe you were not required to file your state tax return for 2019?”, he responded, “Because I didn’t owe any taxes.” He stated that he was “advised about that” by his CPA, Jim Butler.

Mr. Shaddinger also admitted that he did not file for an extension of time for filing his 2019 state income tax return because “the state automatically gave extensions.” He was shown a document, which he identified as “Louisiana Department of Revenue Information Bulletin, No. 20-009,” from March 23, 2020, which he said he relied upon for his belief that “extensions were automatically granted and there was no need for a request for an extension.” He agreed that the Bulletin stated, “the due date for these returns and any payments due with the returns is extended to July 15, 2020. This is an automatic extension and no extension request is necessary.”

During subsequent questioning by Ms. Brehm’s counsel, the court accepted Louisiana Department of Revenue Information Bulletin, No. 20-009 into evidence. Ms. Brehm’s counsel then questioned Mr. Shaddinger about the paragraph titled “Additional Extensions,” found on the second page of the Bulletin. That paragraph states:

As provided above, the filing and payment deadline for income and franchise tax returns had been administratively extended to July 15, 2020. If a taxpayer (individual, corporation, fiduciary, or partnership)

requires additional time to file the return, an extension request may be submitted on the applicable extension form based on the tax type.

The extension period shall run from July 16, 2020, to the general extension date of November 15, 2020 for individual, fiduciary, and partnership returns … .

Mr. Shaddinger admitted that he did not read the whole document and only read the first page of the document. He interpreted the first page of the document to mean that the automatic extension of time to file was extended through July 15, 2020. He testified that there was nothing on the first page stating that there was an extension into 2021.

Ms. Brehm was then called and testified that she was a registered voter who was qualified to vote in the upcoming election for Council Member, District 1, City of Westwego, Parish of Jefferson, Louisiana. During her examination, the

court accepted into evidence the response to her public records request that Ms. Brehm received from the Louisiana Department of Revenue, stating that the Louisiana Department of Revenue could not confirm that Mr. Shaddinger filed a state income tax return for 2019. She testified that she brought this challenge because of that response. On cross-examination, Ms. Brehm admitted that she, personally, did not have any evidence to show that Mr. Shaddinger filed for an extension of time to file his 2019 state income tax return, that he was automatically given an extension of time to file his 2019 state income tax return, or that Mr. Shaddinger was not required to file a state income tax return for the year 2019.

At the conclusion of Ms. Brehm’s testimony, the parties stipulated that no Louisiana income tax return was filed by Mr. Shaddinger for the tax year 2019 as of January 18, 2021 (the date he signed his Notice of Candidacy).

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Loretta Brehm Versus John ("johnny") I. Shaddinger, Jr. and Jon Gegenheimer, in His Official Capacity as Clerk of Court for the Parish of Jefferson, State of Louisiana, (La. Ct. App. 2021).

Loretta Brehm Versus John ("johnny") I. Shaddinger, Jr. and Jon Gegenheimer, in His Official Capacity as Clerk of Court for the Parish of Jefferson, State of Louisiana (Loretta Brehm Versus John ("johnny") I. Shaddinger, Jr. and Jon Gegenheimer, in His Official Capacity as Clerk of Court for the Parish of Jefferson, State of Louisiana) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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