The Supreme Court is considering a bitter tax dispute between a Nevada inventor and California officials that raises broader questions about whether a state agency can be hauled into another state's courts against its will.
The justices heard arguments Monday in a case involving Gilbert Hyatt, a former California resident who claims he moved to Las Vegas in 1991, just before collecting $40 million in patent fees for a computer microprocessor chip.
California officials allege the move came later and claim he owes millions in back taxes. Hyatt sued California's tax agency in Nevada state court, alleging overzealous officials invaded his privacy and committed fraud. He won a $500 million judgment that was later reduced to $1 million.
California says it should be immune from being sued in another state.