Verizon New England Inc. v. Neena S. Savage, in her capacity as Tax Administrator for the State of Rhode Island

CourtSupreme Court of Rhode Island
DecidedFebruary 9, 2022
Docket20-40
StatusPublished

This text of Verizon New England Inc. v. Neena S. Savage, in her capacity as Tax Administrator for the State of Rhode Island (Verizon New England Inc. v. Neena S. Savage, in her capacity as Tax Administrator for the State of Rhode Island) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Verizon New England Inc. v. Neena S. Savage, in her capacity as Tax Administrator for the State of Rhode Island, (R.I. 2022).

Opinion

February 9, 2022

Supreme Court

No. 2020-40-M.P. (A.A. 18-187)

Verizon New England Inc. :

v. :

Neena S. Savage, in her capacity as : Tax Administrator for the State of Rhode Island.

NOTICE: This opinion is subject to formal revision before publication in the Rhode Island Reporter. Readers are requested to notify the Opinion Analyst, Supreme Court of Rhode Island, 250 Benefit Street, Providence, Rhode Island 02903, at Telephone (401) 222-3258 or Email: opinionanalyst@courts.ri.gov, of any typographical or other formal errors in order that corrections may be made before the opinion is published. Supreme Court

Neena S. Savage, in her capacity as : Tax Administrator for the State of Rhode Island.

Present: Suttell, C.J., Goldberg, Robinson, Lynch Prata, and Long, JJ.

OPINION

Justice Goldberg, for the Court. This case came before the Supreme Court

on November 4, 2021, pursuant to a writ of certiorari issued upon petition by the

City of Pawtucket (Pawtucket) and the City of Cranston (Cranston) (collectively

movants).1 The movants seek review of a decision by the Sixth Division District

Court denying their motions to intervene in an action commenced by the plaintiff,

Verizon New England Inc. (Verizon), by way of appeal from a decision of the

defendant, the Tax Administrator for the State of Rhode Island.2 According to the

1 In the Sixth Division District Court, the cities of Pawtucket and Cranston were the moving parties seeking to intervene in an administrative appeal by application to the court. Therefore, herein they are referred to collectively as “movants.” 2 The state tax administrator did not appear in this action before this Court. ‐1‐ movants, the trial judge erred in determining that those cities’ interests in this

controversy would be adequately represented by the City of Providence

(Providence), an intervenor in this case. For the reasons set forth in this opinion, we

affirm the order of the District Court denying the motions to intervene.

Facts and Travel

This controversy arose from Verizon’s challenge to a 2018 final decision of

the tax administrator that upheld an assessment of Verizon’s tangible personal

property (TPP) tax and denied Verizon’s request for a lower assessment and a partial

refund for TPP taxes paid from 2010 through 2014. On December 21, 2018, Verizon

filed an administrative appeal in the District Court in accordance with G.L. 1956

§ 8-8-24, seeking to set aside the tax administrator’s final decision, alleging that the

tax administrator failed to apply the proper depreciation approach, which, according

to Verizon, resulted in excessive assessments and overpayments totaling

approximately $21,358,152.

Initially, on February 27, 2019, the District Court heard and denied motions

filed by the tax administrator to dismiss this case for failure to join indispensable

parties and, alternatively, to join indispensable parties—the state’s thirty-nine cities

and towns and the Department of Revenue Division of Municipal Finance.

In October 2019, Providence moved to intervene as of right, followed by

Pawtucket and Cranston. In its memorandum in support of its motion, Providence

‐2‐ claimed an interest in the TPP tax and contended that, under G.L. 1956 § 44-13-13,

most of the TPP tax is “apportioned to the cities and towns[,]” and, thus,

Providence’s interests could be substantially impacted by the outcome of the action.3

Significantly, in their motions to intervene, movants merely adopted Providence’s

memorandum of law and the arguments therein and presented no additional

contentions separate from those offered by Providence.

On January 14, 2020, the District Court held a hearing on the motions to

intervene. The trial judge granted Providence’s motion and denied movants’

motions. The trial judge carefully reviewed the four requisites necessary for

intervention4—namely that (1) the applicant files a timely application, which was

3 Pursuant to G.L. 1956 § 44-13-13, of the total TPP tax that is paid to the state, an amount “not to exceed three quarters of one percent (.75%)” is payable to the department of revenue for administrative expenses and “identified as general revenue” and the remainder is “apportioned to the cities and towns * * * on the basis of the ratio of the city or town population to the population of the state as a whole * * * and may be recorded as a receivable[.]” Section 44-13-13(6)(i)-(ii). 4 In reviewing these four factors, the trial judge cited Marteg Corporation v. Zoning Board of Review of City of Warwick, 425 A.2d 1240 (R.I. 1981), and Tonetti Enterprises, LLC v. Mendon Road Leasing Corp., 943 A.2d 1063 (R.I. 2008). See Marteg Corporation, 425 A.2d at 1242 (discussing pre-amendment language of Super. R. Civ. P. 24(a)(2)); see also Tonetti Enterprises, LLC, 943 A.2d at 1072-73 (same). As discussed in further detail infra, there exists limited caselaw interpreting Rule 24(a) of the District Court Civil Rules. Therefore, both this Court and the District Court will look to caselaw interpreting Rule 24(a) of the Superior Court Rules of Civil Procedure, which prior to 1995 contained language identical to the current District Court rule. See Tonetti Enterprises, LLC, 943 A.2d at 1071-72 (looking to caselaw interpreting certain rules of the Superior Court Rules of Civil Procedure for guidance on District Court rules). ‐3‐ not at issue in this case; (2) the applicant claims an interest relating to the property

or transaction; (3) the disposition of the action may, as a practical matter, impair or

impede the applicant’s ability to protect that interest; and (4) the applicant’s interest

is not adequately represented by the current parties to the action.

The trial judge determined that all three cities satisfied the second and third

requirements, but further found that Providence adequately represented the interests

of both Pawtucket and Cranston. Specifically, with respect to the second

requirement, the trial judge found that, because the three cities are direct

beneficiaries of the TPP tax, and thus have an economic interest that is intertwined

with the tax revenue at issue and any future distributions, they have an interest

relating to the property or transaction in dispute—namely, Verizon’s request for a

lower tax assessment. With respect to the third requisite, the trial judge found that

the cities had no other avenue to protect their interests in the event of an adverse

ruling. Finally, while acknowledging that the fourth requirement generally involved

a minimal threshold, the trial judge found that the cities’ interests were not

adequately represented by the state agency and that intervention was appropriate.

Apparently concerned with an influx of motions to intervene from multiple

municipalities in the state, and because movants had simply relied upon

Providence’s memorandum and arguments in support of their own motions to

intervene, the trial judge found that the interests of Pawtucket and Cranston would

‐4‐ be adequately represented by Providence, which was allowed to intervene as of right.

An order entered in the District Court on January 16, 2020, memorializing the trial

judge’s decision.

The movants filed a petition for writ of certiorari pursuant to § 8-8-32, which

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Verizon New England Inc. v. Neena S. Savage, in her capacity as Tax Administrator for the State of Rhode Island, Counsel Stack Legal Research, https://law.counselstack.com/opinion/verizon-new-england-inc-v-neena-s-savage-in-her-capacity-as-tax-ri-2022.