On June 30, 2015, the Supreme Court granted certiorari in Franchise Tax Board of the State of California v. Hyatt, No. 14-1175. Bancroft attorneys Paul D. Clement and George W. Hicks, Jr. represent petitioner Franchise Tax Board, the sovereign taxing authority of the State of California. The Board conducted an audit of respondent Gilbert Hyatt and concluded that he had falsely claimed residency in Nevada to avoid substantial California income taxes. Hyatt sued the Board in Nevada state court, alleging various intentional torts arising out of the Board’s audit, and was awarded $490 million. On appeal, the Nevada Supreme Court refused to apply a $50,000 cap on compensatory damages that Nevada law applies to its own agencies sued in Nevada courts. The Supreme Court of the United States agreed to review the following questions: (1) Whether Nevada may refuse to extend to sister States haled into Nevada courts the same immunities Nevada enjoys in those courts; and (2) whether Nevada v. Hall, 440 U.S. 410 (1979), which permits a sovereign State to be haled into the courts of another State without its consent, should be overruled.
You can find links to the petition for certiorari and reply here: http://www.scotusblog.com/case-files/cases/franchise-tax-board-of-california-v-hyatt/