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Home My WebLink About11-9568CARLISLE AREA SCHOOL DISTRICT, SOUTH MIDDLETON SCHOOL DISTRICT, and BIG SPRING SCHOOL DISTRICT, Plaintiffs V. CAPITAL TAX COLLECTION BUREAU Defendant : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA c ?; rnm N DECLARATORY JUDGMENT No. H-95-4>3 CIVIL r-o " AC-) co NOTICE TO DEFEND -< `o ct o c-' C .y A You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Pennsylvania Lawyer Referral Service Pennsylvania Bar Association 100 South Street, P.O. Box 186 Harrisburg, PA 17108 (800) 692-7375 FLOWER LAW, LLC - L 6-1) 14, -4A, 4 4 ?- - es D. Flower, Jr., squire ttorney for Plaintiffs 10 West High Street Carlisle, PA 17013 (717) 243-5313 CARLISLE AREA SCHOOL DISTRICT, IN THE COURT OF COMMON SOUTH MIDDLETON SCHOOL DISTRICT, and PLEAS OF CUMBERLAND COUNTY BIG SPRING SCHOOL DISTRICT, PENNSYLVANIA Plaintiffs DECLARATORY JUDGMENT V. No. I 1--950 g CIVIL CAPITAL TAX COLLECTION BUREAU Defendant COMPLAINT - DECLARATORY JUDGMENT ACTION AND NOW come Plaintiffs, Carlisle Area School District, South Middleton School District and Big Spring School District, by and through their attorneys, Flower Law, LLC, and hereby respectfully represent as follows: 1. Plaintiff, Carlisle Area School District is a school district with offices located at 623 West Penn Street, Carlisle, Cumberland County, Pennsylvania. 2. Plaintiff, South Middleton School District is a school district with offices located at 4 Forge Road, Boiling Springs, Cumberland County, Pennsylvania 17007. 3. Plaintiff, Big Spring School District, is a school district with offices located at 45 Mount Rock Road, Newville, Cumberland County, Pennsylvania 17241. 4. Defendant, Capital Tax Collection Bureau, a non-profit, earned income tax collection agency, serving over sixty mid-state municipalities, townships and school districts, with primary offices located at 2301 North Third Street, Harrisburg, Dauphin County, Pennsylvania, 17110-1893. 5. Defendant, Capital Tax Collection Bureau, filed Articles of Amendment as a Domestic non-profit corporation on May 1, 2009, which Articles of Amendment are attached hereto as Exhibit A. Said Articles of Amendment set forth that the date of incorporation of the Bureau was February 5, 1988. 6. Said Articles of Amendment also refer, in Exhibit A to said Articles, to school districts and municipalities which are Members of the Capital Area Tax Collection Bureau. All three plaintiffs have for many years been Members of the Capital Area Tax Collection Bureau, as that term is referred to in the Articles of Amendment and in the By-Laws. 7. The By-Laws of the Capital Area Tax Collection Bureau as adopted on January 25, 2009 are attached hereto as Exhibit B. 8. Article IX of said By-Laws provides for termination, both by voluntary withdraw of a member and by dissolution of the entire bureau. Section 1 of said article, on page 10 of the By-Laws, provides that, "upon withdrawal of a Member, the Bureau shall continue its existence. Upon such withdrawal.... All right, title and interest of the Member in the Bureau and its property ... shall cease." 9. The By-Laws further provide for the dissolution of the Bureau, indicating that, "the Bureau may terminate its existence, treating such termination as a withdrawal of all of its Members .... (and) (A)fter discharging or making adequate provision for the discharge of all liabilities of the Bureau and the sale of real and personal property at market value, any surplus remaining shall be distributed by the Board of Directors, proportionately, among the Members using the percentage of total earned income/net profit taxes collected for each Member for the year prior to the year in which the dissolution is voted as the basis of distribution. 10. Recent legislation, specifically Act 32 §509, 53 P.S. §6924.507, requires the Cumberland County Tax Collection Committee to appoint and implement a master contract with a tax collector to collect local earned income tax throughout the Cumberland County Tax Collection District. The Cumberland County Tax Collection Committee has appointed the West Shore Tax Bureau to serve as the "Act 32 Tax Collector" throughout the Cumberland Count Tax Collection District. As a result of this decision, plaintiffs are required by law to cease to use the Capital Area Tax Collection Bureau to collect earned income taxes and must use the West Shore Tax Bureau to collect such earned income taxes. The effect of this change of the law is to require plaintiffs to involuntarily withdraw as members of the Capital Area Tax Bureau and to pursue membership with the West Shore Tax Bureau as Act 32 Tax Collector. 11. The Capital Tax Collection Bureau issued financial statements and supplementary information for years ending December 31, 2010 and December 31, 2009. A copy of said financial statements and supplementary information is attached hereto as Exhibit C. 12. Plaintiffs believe and therefore aver, that they are entitled to a distribution of some, as yet undetermined, proportion of the assets of the Capital Tax Collection Bureau, upon being required to involuntarily withdraw as Members of the Bureau. 13. Plaintiffs believe and therefore aver, that the By-Laws of the Capital Tax Collection Bureau, as set forth above, contemplate voluntary withdrawal by a member and contemplate dissolution of the Capital Tax Collection Bureau, but do not contemplate a illegally required involuntary withdrawal by a Member, from defendant, Capital Tax Collection Bureau. 14. Plaintiffs believe and therefore aver, that their legally required involuntary withdrawal from the Capital Tax Collection Bureau is best interpreted under Article IX of the above referenced By-Laws, pertaining to Termination as essentially a partial dissolution of the Capital Tax Collection Bureau, and that they should receive an appropriate distribution from the assets of the Bureau under Article IX, Section 2, pertaining to dissolution, in the proportions set forth in that section. 15. Alternatively, Plaintiffs having been forced by operation of law to withdraw from the Defendant, Capital Area Tax Collection Bureau, Plaintiffs are entitled, under general principals of equity and fairness, to share the assets accumulated by Defendant, Capital Area Tax Collection Bureau over the decades. 16. The remedy of declaratory relief is provided for in the Pennsylvania Judicial Code at 42 Pa. C.S.A. §7531 et seq. The Declaratory Judgment Act provides that courts of record shall have the power to declare the respective legal rights as between parties. 42 Pa. C.S.A. §7532. And further, any party interested in a written contract or other writings constituting a contract, such as the By-Laws of Defendant, Capital Area Tax Bureau, may have determined any question of construction or validity of those writings, and may obtain a declaration of rights or other legal remedies thereunder. 42 Pa. C.S.A. §7533. Wherefore, plaintiffs request that this Honorable Court enter a Declaratory Judgment to the effect that plaintiffs, as Members of the Capital Area Tax Bureau, which have been required by law to withdrawal from the Capital Area Tax Bureau, are entitled to distribution of their proportionate share of the assets of the Capital Area Tax Bureau under Article IX, Section 2, relating to Dissolution of the Capital Area Tax Bureau, and that the Court enter such other Order as it deems appropriate, and schedule further proceedings for the purpose of calculation of the appropriate share of Defendant's assets to be distributed to Plaintiffs. Respectfully submitted, FLOWER LAW, LLC (TJes D. Flower, Jr., Esquire ey for Plaintiffs est High Street Carlisle, PA 17013 (717) 243-5313 VERIFICATION I verify that the statements made in the foregoing document are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904, relating to unsworn falsifications to authorities. W. Friend, Superintendent sle Area School District Date: 1 L? -2? \ CARLISLE AREA SCHOOL DISTRICT, IN THE COURT OF COMMON SOUTH MIDDLETON SCHOOL DISTRICT, and PLEAS OF CUMBERLAND COUNTY BIG SPRING SCHOOL DISTRICT, PENNSYLVANIA Plaintiffs DECLARATORY JUDGMENT V. No. Q ? CIVIL=.2 CAPITAL TAX COLLECTION BUREAU `- Defendant 77 a ^' "' m W --n _,- , 'cm r? CD ACCEPTANCE OF SERVICE Ts P? The undersigned, Suzanne S. Friday, Esquire, an attorney in the Law Firm of Nauman, Smith, Shissler & Hall, LLP, hereby accepts service of the Complaint in the above-referenced matter. y `'"'f Suzann S. Friday, Esquire ?-?Otr tx? S I ". A t t o r n e y s A t L a w Please reply to: P. O. Box 840 Harrisburg, PA 17108-0840 James D. Flower, Jr., Esquire Flower Law, LLC 10 West High Street Carlisle, PA 17013 Suzanne S. Friday, Esquire E-mail: ssfridav,a),iiss(i.com Telephone Extension #20 January 23, 2012 Re: Carlisle Area School District, South Middleton School District and Big Spring School District v. Capital Tax Collection Bureau Docket No. 11-9568 Dear Mr. Flower: Enclosed herewith please find the executed Acceptance of Service regarding the above matter. SSF/klf Enclosure Sincerly yours, Suzanne. Friday u p e r i o r a n a l y s i s. E f f e c t i v e s o l u t i o n s. S i n c e 1 8 7 1. Nauman Smith Shissler 8 Hall, LLP • 200 North 3rd Street, 18th Floor 9 Harrisburg, PA 17101 • 717.236.3010 • fax: 717.234.1925 • www.nssh.com NAUMAN, SMITH, SHISSLER & HALL, LLP By: Craig J. Staudenmaier, Esquire Supreme Court ID#34996 Suzanne S. Friday, Esquire Supreme Court ID#201873 200 North Third Street, P. O. Box 840 Harrisburg. PA 17108-0840 Telephone: (717) 236-3010 Facsimile: (717) 234-1925 e-mail: cjstaud;anssh.com ` -(rFic 2L"2 FEB 13 9: t, p CUMBERLAND COUNTY PENNSYLVANIA Sslridayrnssh.com Attorneys for Capital Tax Collection Bureau, Defendant CARLISLE AREA SCHOOL DISTRICT, IN THE COURT OF COMMON PLEAS OF SOUTH MIDDLETON SCHOOL : CUMBERLAND COUNTY, PENNSYLVANIA DISTRICT, and BIG SPRING SCHOOL DISTRICT, Plaintiffs : DECLARATORY JUDGMENT V. CAPITAL TAX COLLECTION BUREAU, Defendant NO. 11-9568 CIVIL NOTICE TO PLEAD TO: Carlisle Area School District, South Middleton School District and Big Spring School District, Plaintiffs, and their attorney, James D. Flower, Esquire You are hereby notified to plead to the enclosed New Matter within twenty (20) days from the service hereof or a default judgment may be entered against you. NAUMAN, SMITH, SHISSLER & HALL, LLP By• ?Gt Craig V.. Staudenmaier, Esgdfre Supreme Court ID# 34996 Suzanne S. Friday, Esquire Supreme Court ID# 201873 200 North Third Street, P. O. Box 840 Harrisburg, PA 17108-0840 Telephone: (717) 236-3010 Facsimile: (717) 234-1925 NAUMAN, SMITH, SHISSLER & HALL, LLP By: Craig J. Staudenmaier, Esquire Supreme Court ID#34996 Suzanne S. Friday, Esquire Supreme Court ID#201873 200 North Third Street, P. O. Box 840 Harrisburg, PA 17108-0840 Telephone: (717) 236-3010 Facsimile: (717) 234-1925 e-mail: cjstaud;«),nssh.com Ssfridar'&nssh.com Attorneys for Capital Tax Collection Bureau, Defendant CARLISLE AREA SCHOOL DISTRICT, SOUTH MIDDLETON SCHOOL DISTRICT, and BIG SPRING SCHOOL DISTRICT, Plaintiffs V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DECLARATORY JUDGMENT :NO. 11-9568 CIVIL CAPITAL TAX COLLECTION BUREAU, Defendant ANSWER WITH NEW MATTER OF CAPITAL TAX COLLECTION BUREAU DEFENDANT, TO PLAINTIFFS' COMPLAINT - DECLARATORY JUDGMENT ACTION AND NOW comes CAPITAL TAX COLLECTION BUREAU, Defendant, by its attorneys, NAUMAN, SMITH, SHISSLER & HALL, LLP, and files the following Answer to Plaintiffs' Complaint - Declaratory Judgment Action: 1. Admitted. 2. Admitted. 3. Admitted. 2 4. Admitted. Admitted in part and denied in part. It is admitted that the date of incorporation of Capital Tax Collection Bureau was February 5, 1988. The remaining averments of paragraph 5 are specifically denied as they refer to a document which was not attached and strict proof thereof is demanded.. 6. The averments of paragraph 6 are legal conclusions to which no responsive pleading is required. To the extent that a responsive pleading is determined to be required, it is admitted that Plaintiffs were Members of Capital Tax Collection Bureau. By way of further answer, the answer set forth in paragraph 5 above is herein incorporated by reference. 7. Denied. The averments of paragraph 7 are specifically denied as they refer to a document which was not attached and strict proof thereof is demanded. Denied. The averments of paragraph 8 are specifically denied as they refer to a document which was not attached and strict proof thereof is demanded. 9. Denied. The averments of paragraph 9 are specifically denied as they refer to a document which was not attached and strict proof thereof is demanded. 10. The averments of paragraph 10 are legal conclusions to which no responsive pleading is required. To the extent that a responsive pleading is determined to be required, it is admitted that the West Shore Tax Bureau was selected to serve as the local earned income tax collector for Cumberland County pursuant to Act 32, but it is specifically denied that Plaintiffs' withdrawal was involuntary. 11. Denied. The averments of paragraph 7 are specifically denied as they refer to documents which were not attached and strict proof thereof is demanded. 12. The averments of paragraph 12 are legal conclusions to which no responsive pleading is required. To the extent a responsive pleading is determined to be required, Defendant Capital Tax Collection Bureau denies that Plaintiffs are entitled to any distribution of the assets of Capital Tax Collection Bureau. 13. The averments of paragraph 13 are legal conclusions to which no responsive pleading is required. To the extent a responsive pleading is determined to be required, Defendant Capital Tax Collection Bureau denies that the Bylaws fail to address an involuntary withdrawal by a Member. By way of further answer, it is denied that Plaintiffs' withdraw from Capital Tax Collection Bureau was illegally required. 14. The averments of paragraph 14 are legal conclusions to which no responsive pleading is required. To the extent a responsive pleading is determined to be required, Defendant Capital Tax Collection Bureau denies that the Plaintiffs' withdrawal as Members of the Capital Tax Collection Bureau is best interpreted as a partial dissolution of the Capital Tax Collection Bureau, and deny that Plaintiffs should receive any distribution from the assets of the Capital Tax Collection Bureau. 15. The averments of paragraph 15 are legal conclusions to which no responsive pleading is required. To the extent a responsive pleading is determined to be required, Defendant Capital Tax Collection Bureau denies that equity entitles Plaintiffs to a share of the assets of the Capital Tax Collection Bureau upon withdrawal where Plaintiffs never purchased nor otherwise provided consideration in return for their memberships in the Capital Tax Collection Bureau. 4 16. Admitted in part. It is admitted that the remedy of declaratory relief is provided for in the Pennsylvania Judicial Code at 42 Pa. C.S.A. 7531 et seq. The remaining averments of paragraph 16 are legal conclusions to which no responsive pleading is required. WHEREFORE, Capital Tax Collection Bureau, Defendant, demands judgment in its favor and against Carlisle Area School District, South Middleton School District and Big Spring School District, Plaintiffs, as to any and all claims set forth in the Complaint. NEW MATTER 17. The averments set forth in paragraphs 1 through 16 above are herein incorporated by reference. 18. Plaintiffs' claims are barred by the doctrine of laches. 19. Plaintiffs' claims are barred by failure of consideration. As withdrawing Members, Plaintiffs are not entitled to a distribution of the assets of the Capital Tax Collection Bureau where Plaintiffs never purchased nor otherwise provided consideration in return for their memberships in the Capital 'fax Collection Bureau. 20. Plaintiffs' claims are barred by the doctrine of consent. Distribution of a share of Defendant Capital Tax Collection Bureau's assets upon Member withdrawal is specifically governed by the Bylaws of the Capital Tax Collection Bureau which Plaintiffs ratified and adopted as Members of the Capital Tax Collection Bureau. 21. At all times relevant hereto, Defendant Capital Tax Collection Bureau complied with the relevant provisions of its Bylaws with respect to withdrawing Members. 22. Plaintiffs' claims are barred by estoppel. As Members of the Capital Tax Collection Bureau, Plaintiffs had the opportunity to seek an amendment to the Bylaws of the 5 Capital Tax Collection Bureau to provide for a distribution of assets upon their withdrawal as a result of Act 32. Plaintiffs cannot now request this Court provide the remedy they failed to obtain by amendment to the Bylaws. WHEREFORE, Capital Tax Collection Bureau, Defendant, demands this Honorable Court deny Plaintiffs' request for Declaratory Judgment as set forth in their Complaint. NAUMAN, SMITH, SHISSLER & HALL, LLP BY: 4414 Craig J. audenmaier, Esquire Supreme Court ID # 34996 cjstaud@nssh.com Suzanne S. Friday, Esquire Supreme Court ID # 201873 ssfriday@nssh.com 200 North Third Street, P. O. Box 840 Harrisburg, PA 17108-0840 T: (717) 236-3010 F: (717) 234-1925 Counsel for Capital Tax Collection Bureau, Defendant Date: February 10, 2012 6 VERIFICATION I, James Buffington, Jr., Executive Director of CAPITAL TAX COLLECTION BUREAU, Defendant in the foregoing proceeding, make the following statement subject to the penalties of 18 Pa. C.S. §4904, and do state that the facts set forth in the foregoing Answer of Capital Tax Collection Bureau, Defendant, to Plaintiffs' Complaint are true and correct to the best of my knowledge, information and belief. mes Buffington, Jr. Executive Director Capital Tax Collection Bureau Date: February 10, 2012 7 CERTIFICATE OF SERVICE AND NOW, on the date stated below, I, Suzanne S. Friday, Esquire, of the firm ofNauman, Smith, Shissler & Hall, LLP, hereby certify that I this day served the foregoing Answer of Capital Tax Collection Bureau, Defendant, to Plaintiffs' Complaint by depositing a copy of the same in the United States Mail, first class, postage prepaid, at Harrisburg, Pennsylvania, addressed to the following: James D. Flower, Jr., Esquire 10 West High Street Carlisle, PA 17013 NAUMAN, SMITH, SHISSLER & HALL, LLP By: Suzan S. Friday, Esquire Supreme Court ID# 201873 Date: February 10, 2012 9 CARLISLE AREA SCHOOL DISTRICT, IN THE COURT OF COMMON SOUTH MIDDLETON SCHOOL DISTRICT, and PLEAS OF CUMBERLAND COUNTY BIG SPRING SCHOOL DISTRICT, PENNSYLVANIA Plaintiffs DECLARATORY JUDGMENT V. No. 11 -9568 CIVIL CAPITAL TAX COLLECTION BUREAU .? C) s., Defendant : ?r_- YTt Mrn M M- ;r q r- tn r- ? ? r7 4 REPLY TO NEW MATTERc :; AND NOW come Plaintiffs, Carlisle Area School District, South Middleton Sc$)olt District and Big Spring School District, by and through their attorneys, Flower Law, LLC, and hereby respectfully makes the following reply to a new matter of the Capital Tax Collection Bureau: 17. The averments of Plaintiffs' paragraphs 1 through 16 of the original complaint are incorporated herein by reference. 18. This averment is a conclusion of law to which no response to pleading is required. 19. This averment is a conclusion of law to which no response to pleading is required. 20. This averment is a conclusion of law to which no response to pleading is required. 21. Denied as stated. Plaintiffs' involuntary withdraw from the Capital Tax Collection Bureau was not contemplated by the by-laws, the by-laws do not address the respective rights of the parties with respect to such an eventuality. 22. This averment is a conclusion of law to which no response to pleading is required. By way of further answer, however, plaintiffs sought an amicable resolution of this dispute but were prevented from achieving such resolution by other members of the Capital Tax Collection Bureau. Plaintiffs obviously cannot accomplish an amendment to the by-laws without the agreement of the majority of the other members of the Capital Tax Collection Bureau.. Wherefore, Plaintiffs request that the relief sought in Defendant's New ]Matter be denied. Respectfully submitted, FLOW yttomesrneDy ER LAW, . Flower, Jr., Esquire for r Plaintiffs 10 West High Street Carlisle, PA 1701 (717) 243-5313 VERIFICATION I verify that the statements made in the foregoing document are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904, relating to unsworn falsifications to authorities. Carlish Area School District _? Date: v -- j 4 Johnson, Duffle, Stewart & Weidner, P.C. Michael J. Cassidy I.D. No. 82164 Brian W. Carter I.D. No. 204934 301 Market Street P.O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 Carlisle Area School District, et al Plaintiffs V. Capital Area Tax Collection Bureau, Defendant TRE Pf?OTHON 20111 OCT -3 Pi 2; 32 CUMBERL Ut,!TY YL IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA No. 11-9568 CIVIL PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter the appearance of the undersigned on behalf of the Plaintiffs, Carlisle Area School District, South Middleton School District, and Big Spring School District, in the above -captioned matter. Respectfully submitted, JOHNSON, DUFFIE, STEWART & WEIDNER By: Date: September 30, 2014 Michael J. Cassidy, Esquire Attorney I.D. No. 82164 Brian W. Carter Attorney I.D. No. 204934 301 Market Street P. 0. Box 109 Lemoyne, PA 17043-0109 Telephone (717) 761-4540 Attorneys for Plaintiffs CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Praecipe for Entry of Appearance has been duly served upon the following counsel of record, by depositing the same in the United States Mail, postage prepaid, in Lemoyne, Pennsylvania, on October 2, 2014: Joshua D. Bonn Nauman, Smith, Shissler & Hall, LLP P.O. Box 840 Harrisburg, Pennsylvania 17108-0840 JOHNSON, DUFFIE, STEWART & WEIDNER :654418