Case Overview

Represented DBI as Chapter 11 debtor's counsel in disputing a $3.9 million state tax liability. The case addressed the issue of whether a taxpayer must first pay a disputed tax before requesting a judicial review of that assessed tax, a so-called "pay-to-play" requirement. Without realistic options, DBI initiated bankruptcy to stop the Comptroller's collection attempts and brought jurisdictional challenges so that the disputed tax claim could be decided in bankruptcy Court. DBI settled the tax claim for $75,000 and the Chapter 11 case was dismissed.