Property Tax Research Company v. Falstaff Brewing Corporation

708 F.2d 1333
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 19, 1983
Docket82-1662
StatusPublished
Cited by9 cases

This text of 708 F.2d 1333 (Property Tax Research Company v. Falstaff Brewing Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Property Tax Research Company v. Falstaff Brewing Corporation, 708 F.2d 1333 (8th Cir. 1983).

Opinion

JOHN R. GIBSON, Circuit Judge.

Property Tax Research Company (PTR) contracted with Falstaff Brewing Corporation to attempt to reduce Falstaff’s assessed valuation on its New Orleans brewery. The assessed valuation was reduced. Falstaff refused to pay PTR. This action resulted, and a jury awarded PTR $78,-539.07. 1 Falstaff appeals, contending (1) that there was insufficient evidence to support the size of the verdict rendered against it, (2) that it was improperly prevented from introducing evidence of its intent in contracting with PTR, and (3) that the court’s verdict directing instruction was in error. We affirm.

In December 1978 or January 1979 Falstaff closed its brewery in New Orleans. Despite the closing, the 1979 property tax bill which Falstaff received on its New Orleans property was higher than the 1978 bill. On June 6, 1979, Falstaff’s in-house attorney, James Cabanski, wrote a letter of protest to the New Orleans assessor, contending that the taxes on Falstaff’s New Orleans property should be lowered since the brewery was no longer in use. On June 22,1979, Cabanski wrote to Joseph Sansone, owner of PTR, with whom Falstaff had had earlier dealings with respect to reduction of Falstaff’s assessments, and expressed interest in having PTR represent Falstaff in regard to the problems in New Orleans. On June 26,1979, Sansone for PTR sent a form letter to Cabanski outlining a proposal 2 to *1335 attempt to reduce the assessed valuation of Falstaff s property in New Orleans. Under the terms of the agreement, if PTR were successful “and thus effeet[ed] a reduction in taxes,” then Falstaff would pay PTR fifty percent of the first two year’s tax savings. The President of Falstaff, Paul Kalmanovitz, signed the proposal June 28, 1979, and returned it to PTR.

After the execution of the contract Joseph Sansone traveled to New Orleans and met with Falstaff employees to discuss the condition of the property. He inspected the closed brewery and sent pictures of it to the New Orleans Assessor as evidence that the property was no longer in use. He also met with the Assessor, Lawrence Comiskey, and discussed the proper valuation of Falstaff’s property.

Comiskey testified by deposition that he had not devalued the Falstaff property for 1979 because there were rumors that the plant would be reopening. He stated that if a company told him they were going to close, he would not automatically lower their property valuation because “I got burned on that a couple of times.... It’s easier to take them off the tax rolls than to get them back on the tax rolls.” He also testified that he took no steps prior to the meeting with Sansone to reduce the assessment. Comiskey further testified that San-sone was very persistent in attempting to get the assessment reduced, stating “he pressured me to reduce it, cancel it ... and I said I can’t do it basically because I understood they were going to reopen it. Finally, I got it that they were not going to reopen, and officially, absolutely it was closed down.”

Sansone later made a second trip to New Orleans, meeting with personnel from both the Collector’s Office and the Assessor’s Office in an attempt to straighten out problems with the tax bills Falstaff had received. Sansone testified that he and his employees made approximately 100 phone calls to New Orleans in connection with the Falstaff property.

It was stipulated that Falstaff’s New Orleans real estate assessment was reduced from $284,100 in 1979 to $100,000 in 1979, and to $197,100 in 1980. The personal property tax assessment was reduced from $753,140 in 1978 to $100,000 in 1979, and to $3,220 in 1980. These reductions resulted in an annual tax savings for Falstaff of $78,-539.07 for the years 1979-80.

PTR submitted a bill to Falstaff for $78,-539.07, or 50% of the total tax savings for 1979-80. Falstaff refused to pay the bill, contending that the tax reduction had not been due entirely to the efforts of PTR. This action followed.

I. Sufficiency of Evidence to Support the Amount of the Verdict

Falstaff argues that a substantial reduction in taxes was a “foregone conclusion” once the brewery was closed, and that PTR should not have been allowed to recover a fee for those portions of the tax reduction which would have accrued automatically whether PTR had been retained or not. Falstaff argues that there is insufficient evidence to support any award of damages, and further that there is insufficient evidence with respect to the amount of damages found. We conclude that there was sufficient evidence from which the jury could conclude that PTR had effected the tax reduction and was thus entitled to the fee it sought, $78,538.07.

The testimony as to whether there would have been an “automatic” reduction was conflicting. Sansone and Comiskey both testified that there were no automatic reductions, although Comiskey also stated, somewhat inconsistently, that the reduction was a “foregone conclusion”. This was an issue for the jury to determine. Comiskey testified that Sansone had pressured him to cancel and reduce the taxes on the brewery property, that Sansone had convinced him that the taxes should be reduced because the brewery was not going to reopen, and that after discussing the matter with San-sone he had agreed that they should be reduced to a certain figure.

Falstaff contends that the following question and answer support its position *1336 that the tax reduction would have been automatic even in the absence of PTR’s efforts:

Q. (To Comiskey) Would you say it’s a fair statement that you would have reduced the assessment because it was closed even if Mr. Sansone would have come here or not?

A. When they were definitely closing it would have been reduced.

The critical words in the answer, however, are “when they were definitely closing.” Assessor Comiskey was unwilling to reduce the assessed valuation of the property until he was convinced that the brewery was finally and absolutely closed. He did not intend to reduce the taxes on the closed brewery property for the years 1979 to 1980 because rumors were circulating that it would be reopened. Viewed most favorably to plaintiff, the evidence established that Falstaff had not persuaded Comiskey that the brewery was in fact going to be permanently closed, and therefore the taxes had not been reduced. Sansone, however, accomplished what Falstaff had not: He convinced Comiskey to reduce the valuation, and he “effected” a reduction in Falstaff’s property taxes. The contract called for PTR to attempt to have the assessed valuation reduced. Its efforts to persuade the assessor were the endeavors involved to “effect” the tax reduction.

Much of the evidence introduced by Falstaff, and much of Falstaff’s closing argument, was devoted to showing that PTR exerted relatively little effort to reduce the taxes on the New Orleans property. The contract did not provide, however, that PTR was to be paid on the basis of the amount of effort it put out, but rather on the results achieved. The evidence here was sufficient to support a finding that PTR, whatever amount of effort it exerted, did convince Assessor Comiskey to reduce the valuation of the Falstaff property in New Orleans.

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Bluebook (online)
708 F.2d 1333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/property-tax-research-company-v-falstaff-brewing-corporation-ca8-1983.