American Philosophical Association, et al., v. District of Columbia
Superior Court of the District of Columbia- Tax Division
No. 2019 CVT 000003
CASE UPDATE
The Court held four days of hearings in September and October at which 10 Claimants testified to address the District’s objections to their Claims. At the conclusion of the Hearings, when ended on October 2, 2025, the Court requested that the parties submit Post-Hearing briefs on the 16 Claims which are still in dispute. These disputes concern the District’s contention that 2 Claimant’s should have the DC Office of others imputed to them and that the remaining Claimants had unexpired DC sales tax exemptions that the District claims could have been used after an organization moved from the District. On Friday, October 17, 2025, Plaintiffs filed with the Court their Post-Hearing Submission and the District also filed theirs. Responses to each other’s Submissions were filed on October 24, 2025. A Court ruling on these 16 disputed claims is necessary before any tax refunds can be paid to approved Claimants.
The Court will also have to rule on Class Counsel’s request for attorneys’ fees and expenses before any tax refunds can be distributed. Class Counsel have been pursuing this case for over 8 years on a fully contingent basis and have not received any compensation for obtaining a ruling that the local office requirement for obtaining a sales tax exemption from DC is unconstitutional and requiring the District to make 100% tax refunds to approved Claimants. Accordingly, on Friday, October 17, 2025, Plaintiffs filed their Motion for the Court to Award Class Counsel Attorneys’ fees and Expenses, as described in the Notice which accompanied the Claim Form that was sent to you. The Notice stated that:
The law firms of Klafter Lesser, LLP and Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C. are representing the Plaintiffs and the Class (“Class Counsel”). Your organization does not need to pay any money for their work on this case. Following the claims process, these lawyers will request for the Court to approve an award of legal fees and expenses to be paid by the District, and failing that, from the total amount of the approved claims by all Class Members. Class Counsel’s request for legal fees and expenses will not exceed one-third of the total amount of all approved claims.
Having determined there is no viable way to require the District to pay our legal fees and expenses, the motion seeks an award from the total amount of all approved Claims, as is typical in class actions. This Motion for Attorneys’ Fees and Expenses is posted on this Case website.
If you have any questions or concerns regarding this motion, please email Jeffrey Klafter at jak@klafterlesser.com no later than November 7, 2025 and he will contact you to discuss any questions or concerns you may have.
Once the Court rules on the 16 disputed claims, this fee and expense motion, and some additional issues, the Court will enter a judgment requiring the District to pay the amount of the tax refunds of all approved Claims plus interest, specify the awards of fees and expenses from that amount and direct that the balance be distributed to all approved Claimants. We expect the judgment to be entered before the end of this year. Then, assuming the District does not appeal any of the Court rulings in this case, we expect that tax refund distributions will be made early next year. If the District does appeal, distributions could be over a year away.
Lastly, as you may know, the District is still enforcing its unconstitutional law. The Court does not have the authority to enjoin it, but the Court does have the authority to have additional periods for submitting claims so long as the District continues to enforce this unconstitutional law, and Plaintiffs have asked the Court to retain jurisdiction to do so. Accordingly, keep your hotel receipts for any post June 6, 2025 meetings or events in the District and your proof of payment of those bills. You will receive notice of any additional opportunities to submit claims.