State of Maine v. Thompson

CourtSuperior Court of Maine
DecidedSeptember 19, 2007
DocketKENcv-06-319
StatusUnpublished

This text of State of Maine v. Thompson (State of Maine v. Thompson) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of Maine v. Thompson, (Me. Super. Ct. 2007).

Opinion

STATE OF MAINE SUPERIOR COURT CIVIL ACTION

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STATE OF MAINE,

Plaintiff, DECISION AND ORDER v. DONALD L GARBRECHT RODMAN E. THOMPSON, !.AW IIR"t,·;:·

Defendant JAN :2 4 7008

On November 15, 2006, the State Tax Assessor pursuant to 36 M.R.S.A. § 174(1)

issued a Certificate of State Tax stating that defendant owed $159,190.10 in unpaid taxes

for the tax years 1996-1999. On December 15, 2006 the State of Maine filed a complaint

for collection of those unpaid taxes, interest and penalties. The State has filed for

summary judgment, defendant answered and filed a motion to dismiss for lack of

subject matter jurisdiction.

The thrust of the defendant's argument is that he was not accorded proper notice

required by 36 M.R.S.A. § 111(2), and even if he was, he was not accorded his

constitutional due process rights because 36 M.R.S.A. § 111(2) is unconstitutional. He

thus argues that the decision of the Tax Assessor should be vacated and this case should

be remanded for further fact-finding with an eye particularly to the Tax Assessor's

determination of whether defendant was a "resident individual" for purposes of

36 M.R.S.A. § 5111.

As a preliminary matter, this court notes if proper notice was accorded,

defendant may not collaterally attack the valid and final assessment of his resident

status as he failed to seek timely reconsideration of assessments for any of the tax years. 2

36 M.R.S.A. 174(1) provides the authority for the State to enforce assessments, in those

actions "the certificate of the assessor.. .is prima facie evidence of the levy of the tax, of

the delinquency and of the compliance by the assessor with this Title in relation to the

assessment of the tax." The Law Court has "extended the principle of res judicata effect

of final judgments to adjudicative decision of administrative bodies ..." Standish Tel. Co.

v. Saco River Tel. & Tel. Co" 555 A.2d 478, 481 (Me. 1989). Thus the agency's final

judgment with regards to defendant's resident status has "res judicata effect." See

Quirion v. Public Utilities Commission, 684 A.2d 1294, 1296 (Me. 1996).1 As noted in

another tax case, "[t]he rule is grounded on principles of judicial economy, the stability

of final administrative rulings, and fairness to litigants." Maine Central RR Co. v. Town

of Dexter, 588 A.2d 289, 292 (Me. 1991). Thus, if notice was proper defendant is

collaterally estopped from raising the issue of his resident status in front of this court.

The "notice" requirements are outlined in 36 M.R.S.A. § 111(2):

"Notice" means notification served personally or mailed by certified or registered mail or by any courier service providing evidence of delivery to the last known address of the person for whom the notification is intended.

If the State Tax Assessor attempts to give notice by certified or registered mail or by courier and the mailing is returned with the notation, "unclaimed" or "refused" or a similar notation, the assessor may then give notice, for purposes of this Title, by sending the notification by first-class mail to the personfor whom the notification is intended at the address used on the returned certified or registered mail. Notice given in this manner is deemed to be received 3 days after the first-class mailing, excluding Sundays and legal holidays...

1 In Quirion, Quirion was collaterally attacking the PUC's denial of a motion to dismiss based on lack of jurisdiction because he was not a "water utility." The Court determined that the time to appeal PUC's jurisdiction had "long since passed," based largely on Quirion's failure to appeal PUC's decision. Absent "manifest abuse of authority, substantial infringement of the authority of another tribunal, or a need to entertain a belated challenge as a matter of procedural fairness ...PUC's ruling was clearly within its statutorily granted powers, [was] final and valid, and [could not then] be challenged." Id. at 1295-1296. Of course, if defendant was not afforded due process it would not be appropriate to prevent him from raising issues of resident status in the appropriate venue, on a rehearing in front of the assessor. 3

For the tax years of 1996 and 1997, the Assessor prepared and sent a notice and

demand for filing returns by certified mail to defendant's last known address on or

about July I, 2001 signed for on or about July 24, 2001. The Assessor then issued an

estimated assessment for those tax years on January 27, 2002, which was sent and

returned "unclaimed. The Assessor then re-mailed the notice via first-class mail on or

about February 27, 2002. The Assessor then issued a notice and demand for payment

of the tax, interest and penalties within 10 days delivered'to defendant's last known

address on or about April 17, 2002. For the tax years of 1998 and 1999, the Assessor

prepared and sent notice and demand for filing by certified mail to defendant's last

known address on November 11, 2002, signed for on or about November 22,2002. The

Assessor then issued an estimated assessment on January 12, 2003 delivered to

defendant's last known address on January 15, 2003. The Assessor then issued a notice

and demand for payment within 10 days delivered to defendant's last known address

on March 20,2003. For the most part, defendant does not dispute that the Assessor took

the preceding steps, rather he argues he did not receive the notice and/ or the notice

was signed-for by other people. It appears from the supporting affidavits and exhibits

thereto that the Assessor complied with the notice requirements of 36 M.R.S.A. § 111(2),

that do not require "actual" receipt or subsequent sending upon receipt of certified

letter unless marked "unclaimed", "refused" or something similar.

Defendant argues alternatively that the notice requirements of 36 M.R.S.A.

§ 111(2) are constitutionally deficient in providing procedural due process in the instant

case. He argues that when notices were returned signed by people other than

defendant, they should have followed up through other means such as sending another

letter via first-class mail or by telephoning the defendant. The due process clause does 4

indeed require that one be notified in order to have the right to be heard as noted by the

U.s. Supreme Court:

[T]he Due Process Clause does prescribe a constitutional minimum: An elementary and fundamental requirement of due process in any proceeding which is to be accorded finality is notice reasonably calculated, under all circumstances to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.

Greene v. Lindsey, 456 U.s. 444, 449-450 (1982) (quoting Mullane v. Central Hanover Bank &

Trust Co., 339 U.S. 306, 314 (1950».

In Greene, "where the subject matter of the action also happens to be the mailing

address of the defendant, and where personal service is ineffectual, notice by mail may

reasonably be relied upon to provide interested persons with actual notice of judicial

proceedings." [d. at 455.

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Related

Mullane v. Central Hanover Bank & Trust Co.
339 U.S. 306 (Supreme Court, 1950)
Jones v. Flowers
547 U.S. 220 (Supreme Court, 2006)
Standish Telephone Co. v. Saco River Telegraph & Telephone Co.
555 A.2d 478 (Supreme Judicial Court of Maine, 1989)
Farrell v. Theriault
464 A.2d 188 (Supreme Judicial Court of Maine, 1983)
Maine Central Railroad v. Town of Dexter
588 A.2d 289 (Supreme Judicial Court of Maine, 1991)
Quirion v. Public Utilities Commission
684 A.2d 1294 (Supreme Judicial Court of Maine, 1996)

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