Document: Lehman Bros. Bank, FSB v. State Bank Comm’r, No. 656,2006, Jacobs, J. (Del. Nov. 7, 2007)

In reviewing a Superior Court appeal of a ruling of the Delaware State Bank Commissioner (“Commissioner”) with respect to state franchise tax owed by a federally charted bank with a branch in Delaware, the Supreme Court affirmed the lower courts ruling affirming the Commissioner’s decision to impose franchise tax based on income for banking activities outside of Delaware, notwithstanding that the Delaware branch was the bank’s only formally established retail office, but reversed the Superior Courts’ decision with respect to penalties, where it found that the Commissioner had abused discretion by not adequately explaining his refusal to abate penalties.