Arkansas Code § 26-18-808 - Civil Damages for Failure to Release Lien

(a) In General. If any employee of the director knowingly, or by reason of negligence, fails to release a lien under § 26-18-706 or § 26-18-811 on property of the taxpayer, such taxpayer may bring a civil action for damages against the director in court.

(b) Damages. In any action brought under subsection (a) of this section, upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of the following:

(1) Actual, direct, economic damages sustained by the plaintiff which, but for the action of the defendant, would not have been sustained; plus

(2) The costs of the action.

(c) Limitations. (1) Requirement that Administrative Remedies Be Exhausted. A judgment for damages shall not be awarded under subsection (b) of this section, unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Revenue Division of the Department of Finance and Administration.

(2) Mitigation of Damages. The amount of damages awarded under subdivision (b)(1) of this section shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff.

(3) Period for Bringing Action. Notwithstanding any other provision of the law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within two (2) years after the date the right of action accrues.

(d) Notice of Failure to Release Lien. The director shall by regulation prescribe reasonable procedures for a taxpayer to notify the director of the failure to release a lien on property of the taxpayer.

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Last modified: November 15, 2016