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Ruling Allows California Officials To Face Lawsuit In Nevada

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California officials can face allegations in Nevada State after a tie vote from the Supreme Court. The case is a long-running tax dispute with a Nevada inventor.

Moreover, on a separate issue, the justices ruled 6-2 that Nevada is not permitted to award damages greater than what California or Nevada law would allow. The court threw out a $1 million judgement awarded to Gilbert Hyatt over allegations that California’s tax agency committed fraud and invaded his privacy.

This is the third time the court has deadlocked. And, the second time the dispute has ended up before the Supreme Court.

Hyatt, a former California resident who claims he moved to Las Vegas in 1991, prior to collection $40 million in patent fees for the development of a computer microprocessor chip.

According to California officials, Hyatt moved out of the state in 1992 and claim he is still responsible for millions of dollars in back taxes. But Hyatt sued the agency contending its officials were overzealous in their pursuit of him. He won a $500 million judgment that was later reduced to $1 million.

The case will return to the lower court for resolution.

More on the case can be read on the Reno Gazette-Journal (RGJ) Website.