The Second Circuit Court of Appeals upheld a lower court dismissal of a proposed class action suit over the charging of sales taxes at Dunkin’ Donuts shops in Manhattan. The District Court initially dismissed the case in part because the plaintiffs had not exhausted their administrative remedies, such as petitioning the Department of Taxation for a refund of the sales tax. The plaintiffs contended that coffee they purchased was intended to be consumed off the premises and therefore should have been exempt from the tax as dictated by New York state law.  The appellate court agreed with the lower court that the issue was a sales tax issue and that plaintiffs should first file a tax refund claim to resolve it, rather than initiating a lawsuit.