Ledyard v. WMS Gaming, Inc.

Citations

• 338 Conn. 687

Syllabus

Pursuant to statute (§ 12-161a), ''[i]n the institution of proceedings by any municipality to enforce collection of any delinquent tax on personal property from the owner of such property, through . . . any other pro- ceeding in law in the name of the municipality for purposes of enforcing 688 OCTOBER, 2021 338 Conn. 687 Ledyard v. WMS Gaming, Inc. such collection, such person shall be required to pay any . . . reason- able attorney's fees incurred by such municipality as a result of and directly related to such . . . collection proceedings.'' The plaintiff town sought to collect unpaid personal property taxes that it had imposed on slot machines that the defendant, W Co., owned and leased to an Indian tribe for use at the tribe's casino. After the plaintiff filed its collection action in state court, the tribe filed an action in federal court, challenging the plaintiff's authority to impose property taxes on the slot machines. A federal court of appeals ultimately held that the plaintiff's authority to impose property taxes on the slot machines was not preempted by federal law. The plaintiff and W Co. then executed a stipulation regarding the outstanding taxes, interest, penalties, and the attorney's fees incurred in the state collection action, but they disagreed as to whether the trial court could also find W Co. liable for attorney's fees incurred by the plaintiff in defense of the federal action commenced by the tribe, to which W Co. was not a party. The plaintiff and W Co. filed separate motions for summary judgment on that issue, and the trial court granted the plaintiff's motion and denied W Co.'s motion, concluding that the plaintiff was entitled to the attorney's fees that it had incurred in defending the federal action pursuant to § 12-161a. The trial court rendered judgment for the plaintiff only as to liability with respect to the attorney's fees incurred in the federal action, and W Co. appealed to the Appellate Court. The Appellate Court reversed the