TITLE
TO AUTHORIZE THE MAYOR TO ENTER INTO AN AGREEMENT AND MUTUAL RELEASE WITH ALLEN, STOVALL, NEUMANN, FISHER & ASHTON LLP.
BODY
WHEREAS, on or about July 3, 2012, the firm Allen, Stovall, Neuman, Fisher & Ashton LLP, filed a lawsuit against the City of Gahanna, Jennifer Teal, in her capacity as the Tax Administrator, and the Regional Income Tax Agency, as described in the lawsuit known as Douglas LaBorde, et al. v. The City of Gahanna, et al., Franklin County Common Pleas Court, Case No. 12 CV 0008517; and
WHEREAS, the lawsuit alleged that the City of Gahanna's interpretation of the reduced tax credit language, updated on February 8, 1989, improperly required taxpayers who live in Gahanna, but pay income taxes to another municipality, to pay more than the taxpayer should have paid to the City of Gahanna for tax years beginning in 2008 through 2014; and
WHEREAS, on or about February 8, 1989, the City of Gahanna amended its income tax ordinance by eliminating a sentence which included the word "lesser." The complaint alleged that this change meant that taxpayers who live in Gahanna and pay taxes to a different city, like Columbus, at a rate higher than 1.5%, should get a 100% credit, effectively paying nothing to the City of Gahanna; and
WHEREAS, on September 11, 2014, Franklin County Court of Common Pleas Judge Kimberly Cocroft granted summary judgment in favor of the Plaintiffs on their declaratory judgment claims and certified the following class: All individual taxpayers who resided in the City of Gahanna, had taxes withheld or paid to a municipality other than Gahanna at a tax rate greater than 1.5%, and who filed a municipal tax return with Gahanna on or after July 3, 2008, and the Court indicated that the exact amount of damages owing to the Class would be determined at a later date; and
WHEREAS, the Plaintiffs legal counsel sought $16,217,461.97, plus interest and costs; and
WHEREAS, on May 25, 2016, Judge Kimberly Cocroft adopted a Civil Rule 23 noti...
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