The Wilson Firm’s Legal Victory for a Fortune 100 Corporation
The Wilson Firm recently achieved a significant victory for its client, a subsidiary of a Fortune 100 company. The case involved a dispute with Montgomery Central Appraisal District over the value of approximately 30 acres of commercial property located in The Woodlands, Texas.
The Wilson Firm sued Montgomery Central Appraisal District in September 2019 over the appraised value of the client’s property after attempting to resolve the matter with the Montgomery County Appraisal Review Board. While the lawsuit was pending, the Appraisal District continued to over-appraise the value of the property in successive years, expanding the lawsuit to include 2020, 2021, and 2022 tax years. Specifically, the Appraisal District’s expert witness took the position that the client’s property should be appraised at nearly $14 million per year – or 72.2% - more than the client’s expert believed it should be.
In the summer of 2022, the parties went before the judge and argued that the other side’s expert witnesses were using inappropriate methodologies in arriving at their conclusions of value. Specifically, The Wilson Firm moved to exclude one of the Appraisal District’s expert witnesses and land use expert whom the Appraisal District designated to testify what the client’s property COULD be used for – other than its current use - in the event that The Woodlands Township and Howard Hughes Corporation removed certain existing restrictions on the property related to setbacks, height and use restrictions, and other related restrictions. The Wilson Firm argued that no such hypotheticals and assumptions were inappropriate for an expert to base their opinions upon and that such testimony would only confuse the jury and not help them in deciding the ultimate question at trial – what was the correct value of the client’s property as it existed on January 1st of each year in question. The court agreed with The Wilson Firm and excluded the Appraisal District’s land use expert from testifying at trial.
Shortly thereafter, the Appraisal District requested that the parties have a second mediation (the first mediation occurred in July of 2020 when only 2019 and 2020 were at issue). At that mediation, the parties ultimately settled the suit. The Appraisal District specifically agreed to an average appraised value that was $12.2 million less per year – or 37% - than what its expert witness advocated it was worth. The client, on the other hand, settled for an average appraised value that was $1.725 million more – or less than 9% - than what its expert believed it should be. In other words, the client saved over $1.1 million in property taxes as a result.
The tax lawyers at The Wilson Firm worked diligently on this case for 3 ½ years and are very proud of the result. Specifically, they are proud that the Montgomery Central Appraisal District was prevented from attempting to use an improper methodology that taxes its citizens based on what someone at the Appraisal District believes your property COULD be – instead of what it actually IS. The Wilson Firm takes great pride in protecting its clients from government overreach, particularly in this case, where the Appraisal District might attempt to use such methods against more Montgomery County citizens.
If you have a dispute with the Internal Revenue Service, the State Comptroller, or especially your local Appraisal District, please contact the tax lawyers at The Wilson Firm. We’re here to help.
