Today is the last day of arguments in the Fall 2009 session. Arguments will resume in the Winter 2010 session on January 12. The Court will hear three cases today, two in the morning and one in the afternoon. (Docket, briefs)
In the morning session, starting at 9:00 a.m., the Court will hear:
Sound Infiniti v. Snyder, No. 81923-8. On appeal from Division One Court of Appeals, this case originated in Ki
ng County Superior Court. It concerns what remedies are available to a minority shareholder who's shares are taken away, and whether that shareholder can bring a derivative suit against the corporation after he has lost his shareholder status.
Richard Snyder, David Hannah, and Afshin Pisheyar were joint owners (as shareholders) of Sound Infiniti and Infiniti of Tacoma. They had a falling out, and Pisheyar sued the others individually and on behalf of the corporation (a derivative suit). Snyder and Hannah set up a reverse stock split to take away all of Pisheyar's stocks. The trial court allowed the split to proceed after an initial injunction, and dismissed Pisheyar's derivative suit because he was no longer a shareholder.
The Court of Appeals confirmed the ruling, and found that the sole remedy for all Pisheyar's claims is the appraisal process, in which he can obtain fair market value for the shares that were taken away. The Association of Washington Businesses filed an amicus brief supporting Snyder.
G-P Gypsum Corp. v. WA Dept. of Revenue, No. 81995-5. This case originated in Thurston County Superior Court, and was appealed through Division Two Court of Appeals. It concerns whether Tacoma may levy a natural gas tax on anyone who consumes it inside the city limits.
G-P manufactures wallboard in the city of Tacoma, a process that requires large volumes of natural gas. The company pipes the gas in from Sumas or Sumner. Tacoma taxed G-P for use of the gas in the city, but G-P argues that the tax should not apply because of how the word "use" is defined by statute. The relevant definition states that the term has its "ordinary meaning, and shall mean the first act within this state by which the taxpayer takes or assumes dominion or control." Because the gas first comes under G-P's control in Sumas or Sumner, the Tacoma tax shouldn't apply. But the Department of Revenue argues that the "ordinary meaning" of "use" is consumption, and thus the tax applies because G-P is consuming it within the city limits.
The trial court agreed with the Department of Revenue, but the Court of Appeals reversed.
In the afternoon session, starting at 1:30 p.m., the Court will hear:
Columbia Physical Therapy v. Benton Franklin Orthopedic Associates, No. 81734-1. This case originated in Benton County Superior Court, and was certified on appeal to Division Three Court of Appeals. Both parties also moved for discretionary review, but the review was denied by the appellate court. The question before the Court is whether that denial of review was in error.
Columbia sued Benton on several grounds, all related to whether a physician-owned company providing orthopedic services can employ physical therapists. Both parties agree on the facts of the case, but differ on the applicable laws and cases. The trial court issued summary judgment on some of the issues and certified them to the Court of Appeals, and the parties asked for discretionary review. The Court refused the review, stating that the parties disagreed on what issues they wanted the Court to review.
The parties appeal to the Supreme Court, arguing that the denial of review departed so far from the "accepted and usual course of judicial proceedings as to call for the exercise of revisory jurisdiction" by the high court.
