Bates v. Franchise Tax Board

The issue in this case is whether plaintiffs may invoke the damage and injunctive relief provisions of the Information Practices Act (Civ. Code, § 1798 et seq., IPA) in a dispute with the Franchise Tax Board (Board or FTB). We conclude that they may, but that plaintiffs’ damages claims are barred by the Government Claims Act (Gov. Code, § 900 et seq.). We also conclude that the claims for injunctive relief based on violations relating to the assessment and collection of taxes rather than on violations of the IPA are barred by California Constitution, article XIII, section 32.

FACTUAL AND PROCEDURAL SUMMARY

“The Information Practices Act, enacted in 1977, generally imposes limitations on the right of governmental agencies to disclose personal information about an individual. (Anti-Defamation League of B’nai B’rith v. Superior Court (1998) 67 Cal.App.4th 1072, 1078-1079 [ 79 Cal.Rptr.2d 597 ]; Nicholson v. McClatchy Newspapers (1986) 177 Cal.App.3d 509, 514, fn. 2 [ 223 Cal.Rptr. 58 ].) ‘The statute was designed by the Legislature to prevent misuse of the increasing amount of information about citizens which government agencies amass in the course of their multifarious…