In proceedings arising from city's imposition of a "transient occupancy tax" against a number of online travel companies (OTC) in the collective amount of more than $21 million, city's petition for writ of mandate challenging the overruling of its demurrers claiming that the OTCs should abide by the "pay first" rule to challenge the tax is denied as: 1) the city cannot invoke article XIII, section 32 of the California Constitution in this case because that constitutional provision applies only to actions against the state or an officer of the state; and 2) there are no alternative legal grounds upon which the city can impose a "pay first" requirement upon the OTCs in this case.
Filed November 24, 2009
Opinion by Judge Chavez
For Appellant: Kiesel, Boucher & Larson, LLP, Paul R. Kiesel and William L. Larson; Baron & Budd, P.C. and Patrick J. O'Connell; McKool Smith, Steven D. Wolens and Gary Cruciani; City of Anaheim, Cristina L. Talley, City Attorney, and Moses W. Johnson, Assistant City Attorney
For Appellee: Skadden, Arps, Slate, Meagher & Flom LLP, Darrel H. Hieber, Stacy R. Horth-Neubert and Daniel M. Rygorsky, Jones Day, Elwood Lui, Brian D. Hershman and Erica L. Reilley ; McDermott Will & Emery LLP, Jeffrey A. Rossman, Elizabeth B. Herrington and Matthew Oster, Kelly Hart & Hallman LLP and Brian S. Stagner; K&L Gates LLP, William B. Grenner and Nathaniel Curral