Hanjin International Corp. v. Los Angeles County Metropolitan Transportation Authority

Opinion

EPSTEIN, J.

In this case, we conclude that the four-year statute of limitations in Revenue and Taxation Code section 5097 applies to an action for refund of overpayment of a special benefit assessment imposed pursuant to Public Utilities Code (PUC) section 33000 et seq.

FACTUAL AND PROCEDURAL SUMMARY

The facts are not in dispute. Hanjin International Corporation owns two parcels of property located in Metropolitan Transportation Authority (MTA) Benefit Assessment District A-1. On April 4, 2000, Hanjin petitioned the MTA for a refund of the assessments on these parcels for fiscal year 1999-2000. In October 2000, after a field inspection, the MTA acknowledged it had miscalculated the square footage of the parcels. The parties entered into written stipulations resolving the 1999-2000 refund claim, resulting in a substantial refund to Hanjin.

On February 14, 2001, Hanjin filed petitions for reduction in assessments on the same parcels for fiscal years 1997-1998 and 1998-1999. These

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petitions were identical to the petitions for fiscal year 1999-2000 in asserting that the assessments were incorrectly calculated. The MTA summarily rejected the petitions as untimely because they were not filed “before the end of the assessment year for which the assessment is levied,” as required under section 4.3 of the appeal procedures established by the MTA Board of Directors. Hanjin then filed claims for refund with the County of Los Angeles, asserting the assessments had been incorrectly calculated. The county referred these claims back to the MTA for decision. The MTA sent Hanjin another copy of its letter rejecting the petitions as untimely.

Hanjin then brought this action against the MTA and the county (now referred to collectively as the MTA) for refund of excessive benefit assessments for fiscal years 1997-1998 and 1998-1999. Among its affirmative defenses, the MTA asserted that Hanjin failed to timely exhaust the internal administrative remedies provided under the MTA’s benefit assessment appeals procedure. Hanjin successfully moved for summary judgment on the ground that its refund claims were governed by the four-year statute of limitations contained in Revenue and Taxation Code section 5097. Judgment was entered, and the MTA appeals.