Hunter-Reay v. Franchise Tax Board

Opinion

EAGLESON, J. *

The primary issue on appeal is whether a trial court may

restrain and enjoin the sale of a taxpayer’s noncash asset seized pursuant to a jeopardy assessment pending the trial of a civil petition for refund. We hold that a sale may not be so enjoined.

Facts

This is an appeal from the granting of a preliminary injunction by which the superior court restrained the appellant from selling or otherwise disposing of a 1972 Ferrari and a 1967—1968 Golden Eagle Cessna aircraft owned by respondent, pending trial.

Respondent is plaintiff below. On September 18, 1979, the Franchise Tax…