FOR IMMEDIATE RELEASE

FOR FURTHER INFORMATION
Thursday, March 15, 2001

Becky Smalley
Manager, Public Relations
(302)577-8667
rsmalley@state.de.us

SUIT FILED FOR INJUNCTION AGAINST FENWICK ISLAND ESTABLISHMENT

Wilmington - The State of Delaware Department of Finance filed suit today in the Court of Chancery in Sussex County to enjoin a Fenwick Island establishment, Libby's Restaurant. The suit names as defendants: Libby's Restaurant, Inc.: Libby's Group, Inc.; the restaurant's management group and owner Ronald Rick McGee. The suit seeks to require Libby's Restaurant, Inc., Libby's Group, Inc., and Mr. McGee to refrain from conducting business in Delaware until all applicable Delaware state taxes are paid and the business licenses, which were revoked effective January 13, 2001 are renewed as required by law.

The complaint against Libby's Restaurant and Mr. McGee resulted from the business' failure to pay withholding and license/gross receipts taxes at various times to the State of Delaware during the years 1991 through 2000. 

William M. Remington, the Department of Finance's Director of Revenue, encourages businesses to contact the Division of Revenue for assistance when faced with difficulties that can result in the inability to pay liabilities on time. "We understand that businesses face periods of financial hardship, all the more reason to take the initiative and talk to our trained representatives who are available to assist them. Likewise, any business that receives correspondence from our office should respond promptly. Both steps will help resolve a liability and avoid unwanted legal action."

Mr. Remington urges business taxpayers to become knowledgeable of laws that can shut down their businesses for failure to pay their tax liabilities. "We will continue to seek remedies through the courts against any taxpayer who willfully fails to comply with the State of Delaware tax laws and is unwilling to work with the Division of Revenue to arrive at a reasonable payment option." Libby's Restaurant and Mr. McGee acted as though they were immune from the tax laws. 

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Delaware Division of Revenue, 820 N. French St., Wilmington, DE 19801
(302) 577-8200 phone
(302) 577-8656 fax
www.state.de.us/revenue