Government Code Section 800 Cap Does Not Apply to Section 1611.6 Awards.
Acting Presiding Justice Moore, in a 3-0 decision in Villa San Clemente LLC v. County of Orange, Case No. G04984 (4th Dist., Div. 3 Sept. 4, 2012) (unpublished), dealt with a $70,806.71 attorney’s fees award under Revenue and Taxation Code section 1611.6 to a prevailing taxpayer contesting a tax assessment on real property after a trial court denied relief on two arguments but remanded for consideration of one valuation issue (factoring in certain development expenses the board did not consider). Under section 1611.6, a taxpayer can be entitled to recover reasonable fees if an assessment appeal board’s initial action is deemed arbitrary and capricious, as it was on the one challenge. Taxpayer had requested $108,453.75 in fees.
Both sides appealed, but the merits and fee orders were affirmed on appeal.
County argued that the $7,500 cap contained under Government Code section 800, which authorizes the recovery of attorney’s fees in a civil action to review a determination of any administrative proceeding (but subject to the cap), was applicable. The appellate court said no, because Revenue and Taxation Code section 1611.6 expressly provides that the cap did not apply where a remand was necessary from the board’s action like this situation.
The appellate court did not disagree with County’s argument that some fee apportionment was necessary because taxpayer lost two arguments, but the trial court certainly did that in reducing the requested amount and no abuse of discretion was committed in its allocation decision. Beyond that, section 1611.6 is unilateral, only authorizing fees to the successful plaintiff and encouraging taxpayers to “broadly litigate an improper assessment” regardless of whether the fee award is paid by a nongovernmental body or ultimately by public taxpayers.
Puck. 1894. “Print shows a scene at the "Income Tax Office" with a crowd clamoring at the door where a notice states "One at a Time"; inside, a wealthy man is standing by a desk, on the floor at his feet, in his hat, are papers labeled "Personal Property Tax Sworn Off", "Tax on Capital Sworn Off", and "Tax on Investments", he kisses the Bible while a government official sits at the desk with his right hand raised.” Library of Congress.
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