CA, Inc.'s Answer and Counterclaim - Reed Smith

From the state tax library of Reed Smith LLPwww.reedsmith.com/DEtaxfor other related documents, please email ksollie@reedsmith.com143. The absence of an appeal provision has allowed the State to continually demandmore than the amounts to which it is entitled, without any fear that it will ever have to answer foror justify its clear abuse of discretion and abuse of the Statute.144. The Disputed Amount represents property that is owned by CA.145. Pursuant to the applicable Delaware regulations and statutes, CA has no ability tobe heard or to otherwise present an appeal before an administrative or judicial tribunal regardingthe State's improper efforts to deprive CA of its property.146. The State has waived any claim of sovereign immunity with respect to CA'sstatutory cause of action, because 12 Del. C. § 1156(b) explicitly permits the State to be sued inconnection with its efforts to collect interest and penalties from Holders. See e.g., Sandt v.Delaware Solid Waste Auth., 640 A.2d 1030, 1035 (Del. 1994).147. The State has waived any claim of sovereign immunity with respect to CA's claimfor declaratory relief because "a party contracting with an agency of the State authorized by lawto enter into contracts has all the remedies under the contract which any private citizen hasagainst another private citizen." George & Lynch, Inc. v. State, 197 A.2d 734, 737 (Del. 1964).148. Prior to the litigation, the State was aware that it failed to provide Holders withdue process to challenge or otherwise appeal a decision of the State relative to alleged abandonedproperty liability and failed to address this deficiency.The Statute’s Unconstitutional Abrogation of the Statue of Limitations149. A substantial amount of the property presently in dispute comprises creditsallegedly owed to businesses with whom CA has or is conducting business, where the businesses(the "Businesses") have not asked to receive the credit and have not sued for recovery of thatcredit.- 64 –