Court Sees No Reason To Delay Affirmance After State Court Answers Certified Question
CITY OF CHICAGO v. STUBHUB! (November 23, 2011)
The City of Chicago assesses an amusement tax on the sale of tickets to sporting events, concerts, etc. StubHub! and eBay both operate Internet auction sites on which they resell tickets. The City of Chicago brought separate suits against StubHub! and eBay, alleging that it had a right to assess and collect from them a tax on the difference between the original and the resale price. Judges Andersen (N.D. Ill.) and Manning (N.D. Ill.), respectively, rejected Chicago's argument. On appeal, the Seventh Circuit certified (opinion and intheiropinion) the issue to the Illinois Supreme Court. On October 6, 2011, a unanimous Illinois Supreme Court held that Chicago was not allowed to collect the amusement tax from Internet auction sites. Instead of filing a position statement pursuant to Circuit Rule 52 (b), Chicago sought an extension of time, indicating that it was going to request a rehearing from the Illinois Supreme Court.
In their opinion, Seventh Circuit Chief Judge Easterbrook and Judges Bauer and Kanne denied the request for an extension and affirmed the district court judgments. It concluded that the extension would serve no practical purpose, that Chicago did not explain why it thinks a unanimous court would suddenly reverse course, and that Chicago could file post-judgment motions in the district courts in the unlikely event the Illinois Supreme Court changed its ruling.
Michael Rigney practices in the law offices of GVC Ltd. in Chicago. In this blog, he reports on select