At Oral Argument, Justices Seem Reluctant to Find Sovereign Immunity a Jurisdictional Bar

Yesterday's oral argument in Walther v. Flis Enterprises, Inc., no. CV-17-240, should provide some comfort to taxpayers concerned about losing their right to litigate disputed tax claims where the tax in question has been paid to the state. At oral argument, counsel for the Arkansas Department of Finance and Administration explained that they had wanted to bring the issue to the court's attention but were not themselves advocating for it. Without DFA advocating for sovereign immunity, the justices seemed reluctant to apply it themselves sua sponte. [More]

Arkansas Supreme Court Opinion Suggests that Taxpayers May Be Unable to Litigate Tax Cases Against DFA

In an extremely troubling nontax opinion, the Arkansas Supreme Court reversed existing case law on sovereign immunity. The apparent implication for taxpayers is to deny the right to sue the state. This would appear to affect taxpayers seeking both postpayment (refund) and prepayment remedies. Potentially affected taxpayers should carefully evaluate their particular situations. [More]