FRANCHISE TAX BD. OF CAL. v. HYATT

No. 53264.

335 P.3d 125 (2014)

FRANCHISE TAX BOARD OF the STATE of California, Appellant/Cross-Respondent, v. Gilbert P. HYATT, Respondent/Cross-Appellant.

Supreme Court of Nevada.

September 18, 2014.


Attorney(s) appearing for the Case

Lemons, Grundy & Eisenberg and Robert L. Eisenberg , Reno; McDonald Carano Wilson LLP and Pat Lundvall , Carla Higginbotham , and Megan L. Starich , Reno, for Appellant/Cross-Respondent.

Kaempfer Crowell Renshaw Gronauer & Fiorentino and Peter C. Bernhard , Las Vegas; Hutchison & Steffen, LLC, and Mark A. Hutchison and Michael K. Wall , Las Vegas; Lewis Roca Rothgerber LLP and Daniel F. Polsenberg , Las Vegas; Perkins Coie LLP and Donald J. Kula , Los Angeles, CA, for Respondent/Cross-Appellant.

Catherine Cortez Masto , Attorney General, and C. Wayne Howle , Solicitor General, Carson City, for Amicus Curiae State of Nevada.

Dustin McDaniel , Attorney General, Little Rock, AR, for Amicus Curiae State of Arkansas.

John V. Suthers , Attorney General, Denver, CO, for Amicus Curiae State of Colorado.

Joseph R. "Beau" Biden III , Attorney General, and Richard S. Gebelein , Chief Deputy Attorney General, Wilmington, DE, for Amicus Curiae State of Delaware.

Bill McCollum , Attorney General, Tallahassee, FL, for Amicus Curiae State of Florida.

Lawrence G. Wasden , Attorney General, Boise, ID, for Amicus Curiae State of Idaho.

Shone T. Pierre , Baton Rouge, LA, for Amicus Curiae Louisiana Secretary and the Louisiana Department of Revenue.

Janet T. Mills , Attorney General, Augusta, ME, for Amicus Curiae State of Maine.

Douglas F. Gansler , Attorney General, Baltimore, MD, for Amicus Curiae State of Maryland.

Chris Koster , Attorney General, Jefferson City, MO, for Amicus Curiae State of Missouri.

Anne Milgram , Attorney General, Trenton, NJ, for Amicus Curiae State of New Jersey.

Donnita A. Wald , General Counsel, Bismarck, ND, for Amicus Curiae North Dakota State Tax Commissioner Cory Fong.

Richard Cordray , Attorney General, Columbus, OH, for Amicus Curiae State of Ohio.

W.A. Drew Edmondson , Attorney General, Oklahoma City, OK, for Amicus Curiae State of Oklahoma.

Robert E. Cooper, Jr. , Attorney General and Reporter, Nashville, TN, for Amicus Curiae State of Tennessee.

John Swallow , Attorney General, and Clark L. Snelson , Assistant Attorney General, Salt Lake City, UT, for Amicus Curiae State of Utah.

William H. Sorrell , Attorney General, Montpelier, VT, for Amicus Curiae State of Vermont.

William C. Mims , Attorney General, Richmond, VA, for Amicus Curiae State of Virginia.

Robert M. McKenna , Attorney General, Olympia, WA, for Amicus Curiae State of Washington.

Shirley Sicilian , General Counsel, Washington, DC, for Amicus Curiae Multistate Tax Commission.

BEFORE THE COURT EN BANC.


OPINION

By the Court, HARDESTY, J.:

In 1998, inventor Gilbert P. Hyatt sued the Franchise Tax Board of the State of California (FTB) seeking damages for intentional torts and bad-faith conduct committed by FTB auditors during tax audits of Hyatt's 1991 and 1992 state tax returns. After years of litigation, a jury awarded Hyatt $139 million in damages on his tort claims and $250 million in punitive damages. In this appeal, we must determine, among...

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