Cheeseman v. Berkheimer Litigation

This litigation commenced in the fall of 2002. The plaintiffs, Robert W. Cheeseman and Kathleen M. Cheeseman, individually and on behalf of all others similarly situated, allege that Berkheimer violated the Pennsylvania Local Tax Enabling Act, 53 Pa. C.S.A. § 6901 et. seq., ("LTEA") by assessing and collecting unauthorized costs, other than interest and penalties, from taxpayers delinquent in payment of their local Earned Income Tax ("EIT") for tax years 1995 through 2001. Plaintiffs allege that Berkheimer, who contracts with numerous political subdivisions in the Commonwealth of Pennsylvania for the collection of the EIT, is not authorized to assess or collect any costs of collection on unpaid taxes unless and until a suit is brought against the delinquent taxpayer for such collection. Plaintiffs further allege that Berkheimer retained all the monies it assessed and collected in unauthorized costs from delinquent taxpayers.

Berkheimer denies each and every allegation of wrongdoing and disclaims any and all wrongdoing or liability whatsoever. Berkheimer has asserted a number of good faith defenses to the claims asserted in this action, as well as a counterclaim for outstanding EIT.

The Court has not yet ruled on the merits of the Class' claims or Berkheimer's defenses or counterclaim.

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