Nonresident Can't Sue City Over Sales Tax, Calif. Court Says

Law360, New York (February 4, 2014, 4:17 PM EST) -- A California appeals court Monday dismissed a suit challenging the city of Calistoga's decision not to use sales tax revenue to restore a reservoir, finding the plaintiff lacked standing as a nonresident.

A three-judge panel affirmed a trial court’s termination of San Diego resident Grant Reynolds’ suit alleging the city, its mayor, four city council members and the Napa County Flood Protection and Watershed Improvement Authority breached their fiduciary duty by using sales tax revenue on an alternate project, which he claimed was not permissible under...
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