Signal Aviation Services, Inc. v. City of Lebanon

February 14, 2013 by Justia

Petitioner Signal Aviation Services, Inc. appealed a superior court order which granted a motion to dismiss filed by the City of Lebanon. The City entered into a twenty year lease with HL Leasing for certain municipal airport lands. HL Leasing assigned its rights to Sierra Nevada Helicopters, which then assigned the rights to its affiliate, Signal. In the lease, the City agreed it would not allow any other provider of commercial aeronautical services to operate at the airport under terms more favorable than those set forth in the lease. In 2006, the City increased the assessed value of Signal's leased land. Signal claimed that the city assessed its land disproportionately as compared to other entities operating and leasing land at the airport. Signal was unsuccessful in seeking an abatement of its 2006 and 2007 taxes. The New Hampshire Board of Tax and Land Appeals (BTLA) dismissed Signal's appeals, holding that Signal failed to present any evidence of the market value of its property. Signal did not appeal the BTLA's decision nor did it contest the City's 2008 and 2009 assessments. Signal then filed suit in superior court to challenge all of the assessments. The trial court concluded that though Signal's petition was styled as a breach of contract, but that it was actually a request for tax abatement and outside the court's jurisdiction. The trial court then dismissed Signal's petition for failing to state a claim upon which relief could be granted. Upon review, the Supreme Court upheld the trial court's decision insofar as it related to Signal's allegations of "disproportionate taxation." However, to the extent that Signal's breach of contract claim sought relief from "unequal treatment," specifically with respect to the amount of taxable land the City attributed to Signal and to other airport tenants with which the City contracts, Signal could pursue this claim without complying with the tax abatement statutory process. View "Signal Aviation Services, Inc. v. City of Lebanon" on Justia Law