One aspect of the Occupational Tax lawsuit that has not drawn much attention involves an Order entered by the Alabama Supreme Court last summer. On June 4, 2009, the County filed an application with the Alabama Supreme Court for an emergency stay of the Circuit Court’s Order requiring them to escrow the proceeds of the occupational tax. The County invoked Act 1953-438, an old local act that exempted Jefferson County from having to post a supersedeas bond when filing an appeal. Counsel for the taxpayer class objected, stating the County should have to play by the same rules as every other litigant – the Alabama Rules of Civil Procedure.
The Alabama Supreme Court agreed, and on June 23, 2009 entered an Order that stated:
Act 1953-438, exempting the County from posting a supersedeas bond, is procedural and is displaced by Rule 62, Ala. R. Civ. P. See Ex parte Forbus, 510 So. 2d 242, 244 (Ala. 1987). The omission of an obscure local act from Appendix II, Statutes and Rules Superseded, is not persuasive. … THEREFORE, IT IS ORDERED that the motion to stay is denied without prejudice to the County’s right to apply for a stay in the trial court pursuant to Rule 62(c) upon posting a supersedeas bond satisfactory to the trial court and, upon inability to post a satisfactory supersedeas bond, without prejudice to the County to renew its motion to stay before this Court, accompanied by a record supportive of its inability to do so.
Thus, Jefferson County now had to play by the same rules as every other litigant. They had to comply with the Rules of Civil Procedure and could no longer take a free shot at an appeal under the arcane local act it had so long relied upon. The County did not post a bond; nor did it seek any further stay with either the trial court or the Alabama Supreme Court. The County instead opted to comply with the directives of Judge Rains and escrowed the funds it collected under the now defunct occupational tax. This was a major victory for not only the taxpayer class in this case, but as a model of equal justice for all citizens in Alabama – the Alabama Supreme Court made it clear that local governments will be held to the rule of law.
Unfortunately, Jefferson County doesn’t like to play by the rules the rest of us have to play by. On February 4, 2010, House Bill 503 was introduced in the Alabama Legislature. This bill was proffered:
To authorize Jefferson County, Alabama, to take an appeal from and supersede any judgment, decree, writ or order, in any case in which it is a party, without the necessity of executing an appeal bond, supersedeas bond, dissolution bond, or other bond.
Clearly, the County does not like the Alabama Supreme Court telling it that it must abide by the rules that govern the rest of us. The County wants its special treatment back. It is our hope that the Alabama Legislature will take heed of the ruling of the Alabama Supreme Court and will take a stand for the rule of law. HB 503 should fail. Jefferson County must not be allowed to play by its own rules any longer.
