Taxpayer Action Proves Under-Reporting Of Profits By Indian Tribes; Plaintiff Entitled To Fees.

A taxpayer action was brought against the California Gambling Control Commission and the California State Controller alleging they failed to discharge their mandatory duty to collect money derived from gambling owed to the state by various Indian tribes. It was determined the Indian casinos under-reported their net earnings by over $100,000,000, and that $12.8 million had been underpaid to the State of California. The appellate court determined plaintiff proved her taxpayer action was the catalyst in the State’s collecting much of what was underpaid and that she was entitled to attorney fees under Code of Civil Procedure section 1021.5.  Cates v. John Chiang, as State Controller (Cal. App. Fourth Dist., Div. 1; February 7, 2013) 213 Cal.App.4th 791.