Electronically Filed - JACKSON - INDEPENDENCE - September 08, 2023 - 08:33 PM

2316-CV23700

IN THE CIRCUIT COURT OF JACKSON COUNTY, MISSOURI

AT INDEPENDENCE

STATE OF MISSOURI EX REL. )

CITY OF LEE’S SUMMIT, MISSOURI, )
)
Relator and Plaintiff, )
)
vs. ) Case No.
)
COUNTY OF JACKSON, MISSOURI, )
)
FRANK WHITE JR., )
Jackson County Executive, )
in his official capacity, )
)
and )
)
GAIL MCCANN BEATTY, )
Jackson County Director of Assessment, )
in her official capacity, )
)
Respondents )
and Defendants. )
)
Serve all Respondents and Defendants at: )
415 East 12th Street )
Kansas City, MO 64106 )

PETITION FOR MANDAMUS, DECLARATORY JUDGMENT, ACCOUNTING,

BREACH OF FIDUCUARY DUTY, AND BREACH OF CONTRACT (ED)

The City of Lee’s Summit, Missouri (the “City”) brings this action against Respondents

and Defendants Jackson County, Missouri, Frank White, Jr., and Gail McCann Beatty because

they fail and refuse their clear and unconditional duty to assess real property taxes in Jackson

County in the way required by Missouri law. Respondents and Defendants increase tax

assessments beyond the allowable percentage, fail to notify property owners of increases in

property valuations, fail to perform required property inspections, and fail to correctly and timely

account for new construction. The City asks the Court to require Respondents and Defendants to
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make real property assessments in compliance with Missouri law and provide the City with other

relief to ensure that the Respondents and Defendants continue to follow their ministerial duty under

Missouri law.

PARTIES
1. Plaintiff, the City of Lee’s Summit, Missouri, is a Missouri constitutional charter

city located in Jackson County, Missouri.

2. Defendant, Jackson County, Missouri (the “County”), is a Missouri constitutional

home rule charter county.

3. Defendant, Frank White Jr. (“County Executive”), is the Executive of the County,

having responsibility for all affairs of the county placed in his charge pursuant to Article III of the

Constitutional Home Rule Charter of Jackson County, Missouri. Pursuant to the County’s Charter,

the County Executive has the power to “[c]orrect errors in assessment and tax records,” “appoint

directors of departments,” and “assign all duties and functions prescribed by law or this charter for

the county assessor.”

4. Defendant, Gail McCann Beatty (“County Assessor”), is the Director of

Assessment, having responsibility for valuation of all real and personal property in Jackson

County.

JURISDICTION AND VENUE

5. This Court has subject matter jurisdiction pursuant to § 478.070, § 526.010, and §

527.010 RSMo., among other authority, whereby circuit courts of Missouri are authorized to issue

and determine original remedial writs, grant injunctions, and declare rights, status, and other legal

relations.

6. Section 139.300 RSMo. provides that “[e]very county clerk, assessor, collector or

other officer, who refuses or knowingly neglects to perform any duty enjoined on him by, or

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consents in or connives at any evasion of the laws relating to the assessment, levy and collection

of taxes, whereby any proceedings required by such laws are prevented or hindered, or any

property is unlawfully exempted from taxation or is entered upon the tax list at less than its full

cash value, is liable for each offense, neglect or refusal, individually and on his official bond, for

double the amount of the loss or damage caused thereby” and authorizes an action to recover such

penalties and damages.

7. Venue is proper in this Court pursuant to § 508.060 RSMo. because all suits against

a Missouri county must be brought in the circuit court of the county.

GENERAL ALLEGATIONS

8. Section 1 of Article X of the Missouri Constitution authorizes the exercise of taxing

power by counties and political subdivisions of the State.

9. The City has a real property tax pursuant to Chapter 94 RSMo., among other

authority.

10. Pursuant to § 137.115.1 RSMo., the County Assessor is required to “annually assess

all real property, including any new construction and improvements to real property, and

possessory interests in real property at the percent of its true value in money set in subsection 5 of

this section.”

11. Section 137.115.1 RSMo. requires an assessor to “annually assess all real property

in the following manner: new assessed values shall be determined as of January first of each odd-

numbered year and shall be entered into the assessor’s books. Those same assessed values shall

apply in the following even-numbered year, except for new construction and property

improvements which shall be valued as though they had been completed as of January first of the

preceding odd-numbered year.”

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12. Section 137.115.10 RSMo. requires an assessor to conduct a physical inspection of

residential real property before the assessor may increase the assessed valuation “by more than

fifteen percent since the last assessment, excluding increases due to new construction or

improvements.”

13. “If a physical inspection is required, pursuant to subsection 10…the assessor shall

notify the property owner of that fact in writing and shall provide…clear written notice of the

owner’s rights relating to the physical inspection.” § 137.115.11 RSMo.

14. “If a physical inspection is required, the property owner may request that an interior

inspection be performed during the physical inspection.” § 137.115.11 RSMo.

15. “The owner shall have no less than thirty days to notify the assessor of a request

for an interior physical inspection.” § 137.115.11 RSMo.

16. A physical inspection “shall include, but not be limited to, an on-site personal

observation and review of all exterior portions of the land and any buildings and improvements to

which the inspector has or may reasonably and lawfully gain external access, and shall include an

observation and review of the interior of any buildings or improvements on the property upon the

timely request of the owner…. Mere observation of the property via a drive-by inspection or

the like shall not be considered sufficient to constitute a physical inspection as required by

this section.” § 137.115.12 RSMo. (emphasis added).

17. Section 137.180.1 RSMo. requires an assessor to notify the record owner of an

increase in the valuation of any real property. “Every such increase in assessed valuation made by

the assessor shall be subject to review by the county board of equalization…”

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18. The county board of equalization is authorized under § 138.030.2 RSMo. to “hear

complaints and equalize the valuation and assessments upon all real and tangible personal property

taxable by the county so that all the property shall be entered on the tax book at its true value.”

19. “When challenges to taxes do not involve questions of valuation, equalization, or

any other issue in § 138.430, no administrative appeals are required.” Quaker Oats Co. v. Stanton,

96 S.W.3d 133, 138 (Mo. App. 2003).

20. Counties with a charter form of government are required to set the tax rate by

October first of each year. §137.055 RSMo. Section 137.055.2 RSMo. requires a public hearing

to set the property tax rate.

COUNT I
(Mandamus)

21. The City incorporates the above paragraphs.

22. Mandamus will issue to compel the performance of a ministerial duty.

23. Mandamus may be sought “where the duty sought to be enforced is a simple,

definite, ministerial duty imposed by law….”

24. Respondents and Defendants have a ministerial duty to assess real property values

pursuant to Missouri law.

25. On information and belief, Respondents and Defendants improperly assessed real

property values by employing assessment methods which are contrary to Missouri law and include

failing to account for new construction at the required time, increasing assessments beyond the

allowable percentage, failing to notify property owners of increases in property valuations and

inspections, and failing to perform required inspections. Respondents and Defendants have

arbitrarily and without legal authority breached their ministerial duty mandated by statute.

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26. As a result of these failures, the City has been and will continue to be deprived of

tax revenues to which it is entitled.

27. The City has no other adequate legal remedy to compel Respondents and

Defendants to comply with their express duties under Missouri law.

28. Assessment of real property values is a ministerial duty subject to being compelled

by mandamus.

COUNT II
(Declaratory Judgment)

29. The City incorporates the above paragraphs.

30. Pursuant to § 527.020 RSMo., and Missouri Supreme Court Rule 87.02, any person

“whose rights, status, or other legal relations are affected by a statute…may obtain a declaration

of rights, status, or other legal relations” that arise under such statute.

31. Section 527.130 RSMo. defines “person” as “any person…including municipal or

other corporation of any character whatsoever.”

32. The City is a “person” authorized to seek declaratory judgment pursuant to §§

527.020 and 527.130 RSMo.

33. The City has a legally protectable interest in the methodology used by Respondents

and Defendants for the assessment of real property within the City limits. When Respondents and

Defendants improperly assess real property within the City, property is incorrectly valued and tax

amounts on that property are also incorrect. Furthermore, improper assessment frequently leads to

appeals by property owners during which time the City is unable to access the taxes paid by such

property owners.

34. A justiciable controversy exists between the City and Respondents and Defendants

that is ripe for determination in that actions taken by Respondents and Defendants unlawfully

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deprive the City, and if persisted in, will continue to deprive the City of correct tax revenue to

which the City is entitled.

35. The City has no adequate remedy at law.

COUNT III
(Accounting)

36. The City incorporates the above paragraphs.

37. Acting under Section 3 of Article X of the Missouri Constitution, the “authority

levying the tax” acts in a fiduciary capacity for the public benefit of those “within the territorial

limits of the authority levying the tax.” Respondents and Defendants act in a fiduciary capacity for

the benefit of the City which is entitled to receive tax revenue based on assessments made correctly

under Missouri law.

38. The City has no means to determine what precise methods Respondents and

Defendants used for real property assessments or the extent to which Respondents’ and

Defendants’ methods deviated from Missouri law. That information is peculiarly within

Respondents and Defendants’ knowledge and is based on records in Respondents’ and Defendants’

control.

39. Discovery and an accounting are necessary to determine Respondents and

Defendants’ methods of assessment.

40. The City does not have an adequate remedy at law.

COUNT IV
(Breach of Fiduciary Duty)

41. The City incorporates the above paragraphs.

42. Respondents and Defendants owed the City a fiduciary duty.

43. Respondents and Defendants breached their fiduciary duty.

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44. Respondents and Defendants’ breach caused damage to the City.

COUNT V
(Breach of Contract)

45. The City incorporates the above paragraphs.

46. On July 11, 2007, the City and the County entered into a “Consolidated Tax Billing

and Collection Agreement” (the “Contract”) (attached as Exhibit 1).

47. The Contract provides for consolidated property tax billing and reciprocal

collection services.

48. Among other obligations, the Contract requires the County to “provide the City

with periodic reports on the City taxes billed, collected and distributed by the County,” and to

“provide necessary records of the tax rolls to the City.”

49. The City has requested records from the County regarding the taxes billed,

collected, and distributed by the County, as well as records regarding the tax rolls and the County’s

assessment procedures. However, the County has failed to provide adequate records. The County’s

failure to provide those records has left the City unable to confirm the propriety and timeliness of

assessments and tax payments in the City.

50. The Contract comprises a valid and enforceable contract.

51. The City has in all respects complied with the terms and conditions of the Contract

or they have been waived.

52. Respondents and Defendants have breached the Contract by failing to provide the

City with adequate periodic reports on the City taxes billed, collected, and distributed by the

County, and by failing to provide necessary records of the tax rolls to the City.

53. The City has been damaged as a direct and proximate result of Respondents and

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Defendants’ breaches.

WHEREFORE, in accordance with the procedure set forth in Rules 94.04 and 94.05, the

City requests that this Court issue its preliminary and permanent order in mandamus compelling

Respondents and Defendants to comply with Missouri law in making taxation assessments of real

property in Jackson County, Missouri. The City further requests that this Court:

A. Declare the parties’ rights and the duties under Missouri assessment and taxation

statutes.

B. Grant temporary, preliminary, and permanent injunctive relief as necessary to

assure Respondents’ and Defendants’ future full compliance with Missouri law.

C. Award damages against Respondents and Defendants for Respondents and

Defendants’ breach of contract and fiduciary duties in an amount to be determined.

D. Order Respondents and Defendants to promptly provide the City with adequate

periodic reports on the City taxes billed, collected, and distributed by the County, and to provide

adequate records of the tax rolls to the City.

E. Award the City its costs and attorneys’ fees.

F. Grant such other relief as the Court deems just and proper.

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Respectfully submitted,

By: /s/ David A. Streubel

David A. Streubel, #33101 (lead counsel)
Cunningham, Vogel & Rost, P.C.
3660 S. Geyer Road, Suite 340
St. Louis, MO 63127
(314) 446-0800
dave@municipalfirm.com

-and-

By: /s/ Jo Leigh Fischer

Jo Leigh Fischer, MO Bar #48054
Chief of Litigation
Brian W. Head, MO Bar #45782
City Attorney
Scott Ison, MO Bar #58457
Law Department
City of Lee’s Summit
220 SE Green St.
Lee’s Summit, MO 64063
(816) 969-1400
JoLeigh.Fischer@cityofls.net
Brian.Head@cityofls.net
Scott.Ison@cityofls.net

ATTORNEYS FOR RELATOR AND

PLAINTIFF

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STATE OF MISSOURI EX REL. CITY OF LEE’S SUMMIT
V. COUNTY OF JACKSON, ET AL.

RELATOR-PLAINTIFF’S INDEX OF EXHIBITS

Number Description

1 Consolidated Tax Billing and Collection Agreement

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