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In California tax dispute, Supreme Court ponders when one state can be sued in another's courts

Posted By Administration, Wednesday, December 09, 2015

The Supreme Court took up a bitter dispute Monday between the state of California and an inventor it says moved to Nevada in the early 1990s to avoid paying taxes.

But rather than focus on who is right or how much is owed, the justices debated a question that has been unsettled throughout American history: Can one state be sued in the courts of another state?

The case began when California tax collectors pursued inventor Gilbert Hyatt for millions in unpaid taxes from 1991 in the months before he resettled in Las Vegas. Hyatt was awarded a patent for a microchip that was seen as crucial to the first microprocessors, and he stood to gain huge amounts from royalties.

Read the whole story at LA Times

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