Franchise Tax Board v. Super. Ct. 6/6/11 SC

State: California

Docket No: S176943

Case Date: 06/06/2011

Plaintiff: Franchise Tax Board

Defendant: Super. Ct. 6/6/11 SC

Preview:Filed 6/6/11

IN THE SUPREME COURT OF CALIFORNIA

FRANCHISE TAX BOARD,

) ) Petitioner, ) ) v. ) ) THE SUPERIOR COURT OF THE CITY ) AND COUNTY OF SAN FRANCISCO, ) ) Respondent; ) ) TOM GONZALES, as Personal ) Representative, etc., ) Real Party in Interest ) and Respondent. ) ____________________________________)

S176943 Ct.App. 1/5 A122723

San Francisco City and County Super. Ct. No. CGC-06-454297

Does a taxpayer have the right to a jury trial in an action for a refund of state income taxes? The Court of Appeal said yes, reasoning that the gist of such an action is legal and therefore a jury trial is guaranteed by the state Constitution. We reverse. The facts are undisputed, and may briefly be stated. Real party in interest Tom Gonzales, as personal representative of his sons estate, filed a complaint in 2006 seeking a refund of state personal income taxes for the years 2000 and 2001. Gonzales alleged that the estate had paid over $15 million as part of a tax amnesty program, reserving the right to seek a refund. He demanded a jury trial. The trial court denied a motion by defendant Franchise Tax Board to strike the jury demand. On the Boards application for writ relief, the Court of Appeal issued an 1

order to show cause. After thorough consideration of the parties arguments, the court declined to disturb the trial courts ruling as to the refund action, deciding as a matter of first impression that there is a state constitutional right to a jury trial in an action for a refund of state income taxes.1 We granted the Boards petition for review. DISCUSSION The statutes governing suits for income tax refunds from the state are silent on the right to a jury trial. (Rev. & Tax. Code,

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