Dunn v. State of North Carolina

STEPHENS, Judge.

In this appeal, Defendants challenge, on grounds of sovereign immunity and standing, the trial court’s order certifying, for purposes of pursuing a class action lawsuit, a class of taxpayers who paid income tax on interest earned or accrued on obligations of states other than North Carolina and their political subdivisions (“non-State obligations”). We affirm the trial court.

On 4 November 2003, Defendants received written demands for a refund of taxes paid on non-State obligations for tax years 2001 and 2002 from Plaintiffs Lessie J. Dunn and Erwin W. Cook, Jr. Defendants…