title
Occupational license class action lawsuit. (Michael C. Addison and
Richard T. Petitt for themselves and all other similarly situated
persons vs. City of Tampa, Florida, individually and as representative
all other Municipalities similarly situated in case no.: 03-CA-05425. (NB)
recommendation
The City Commission receive an update on the case and authorize the City Attorney to expend up to an additional $5,000 in fees.
explanation
In 2003, several Florida attorneys filed an action in Hillsborough County alleging that occupational license taxes imposed upon attorneys in this state are unconstitutional. They argue that the taxes regulate the practice of law, which is the sole jurisdiction of the Florida Supreme Court. They sought to have all lawyers in the state joined in a Plaintiff class and all counties and cities that imposed an occupational license tax joined in a Defendant class.
The case has a long and litigious past. In short, the attorneys were successful in circuit court in Hillsborough County in getting the Plaintiffs and Defendants certified as classes. The circuit court also appointed an attorney in the Tampa City Attorney's Office to represent the defendant counties and cities, which number in excess of 200. The certification of all the lawyers as a class and the certification of the cities and counties as a class was upheld by the Second District in an interlocutory appeal and then remanded back to the circuit court. The case remains pending in Hillsborough County.
In 2008, this office was instrumental in putting a consortium (Gainesville, Pensacola, Tallahassee, Clearwater, Kissimmee, and the Florida League of Cities) to hire special counsel to represent their interest in the litigation. The cities desired to assert their home venue privilege (a city's privilege to be sued in its home county) or to "opt out" of the class certification, either of which would mean that they would not have to litigate their ordinances in Hillsborough County and that the results of the Hillsborough County litigation would not be binding on them.
To that end, the City Attorney's Office sought authorization from the Commission to join with the other cities and hire special counsel with the goal of getting the cities excluded from the class action in Hillsborough County. The City Commissioners on March 19, 2009 authorized the expenditure of $5,000 to cover the City's share of the special counsel's fees. That goal was met when the court granted Hillsborough County's Motion to Exclude all non-Hillsborough cities and counties from the class.
The Plaintiff lawyers immediately took an appeal from the court's exclusion of all non-Hillsborough cities and counties from the case. That appeal is pending. The initial consortium of cities, along with a group of 10 cities from south Florida, will be seeking to file a brief explaining their interest in the matter and why the lower court's ruling dismissing the cities was the right result. The Plaintiffs are asking for refunds of all occupational license taxes lawyers have paid back to 1999. It is estimated that this amount to date is in excess of $200,000 for the City of Gainesville. To date, the City has been billed approximately $6,200 for its share of attorney fees and costs and will share in the appellate attorney fees and costs, which is anticipated to not exceed a total of $10,000 in fees.
Fiscal Impact
Funds available in the General Fund Operating Budget.