Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_03-cv-04518/USCOURTS-cand-5_03-cv-04518-14/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 26:6532 IRS: Refund of Tax Penalty

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Stipulation and Order Re Extension 

to File Notice of Hearing

Case No. C-03-4518 JW RS 1

SCOTT N. SCHOOLS

United States Attorney

Chief, Tax Division

CYNTHIA STIER

Assistant United States Attorney

 450 Golden Gate Avenue, Box 36055

 San Francisco, California 94102

 Telephone: (415) 436-7000

 Facsimile: (415) 436-6748

W. CARL HANKLA (D.C. Bar No. 411665)

JOSEPH A. SERGI

GOUD P. MARAGANI

JUSTIN S. KIM

Trial Attorneys, Tax Division

U.S. Department of Justice

 P.O. Box 683, Washington, D.C. 20044

 Telephone: (202) 307-6448

 Facsimile : (202) 307-0054

 E-mail: w.carl.hankla@usdoj.gov

Attorneys for Defendant and Plaintiff on 

Counterclaim United States of America

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

NEAL M. DOUGLAS and CHRISTINE R. )

DOUGLAS, )

) Case No. C-03-4518 JW RS

Plaintiffs, )

)

v. )

)

UNITED STATES OF AMERICA, )

)

Defendant and )

Plaintiff on Counterclaim, ) STIPULATION AND ORDER

v. ) EXTENDING TIME FOR U.S. TO FILE 

) NOTICE OF HEARING AS TO ITS

) MOTION FOR PARTIAL SUMMARY

NEAL M. DOUGLAS and CHRISTINE R. ) JUDGMENT 

DOUGLAS, )

)

Defendants on )

Counterclaim. )

 )

WHEREAS, this case involves Neal and Christine Douglas’s complaint for refund of

income tax in excess of $15 million plus interest, and the United States’ counterclaim seeking,

among other things, an accuracy-related penalty for as much as $5,727,474 plus interest;

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

AS MODIFIED

Judge James Ware

Case 5:03-cv-04518-JW Document 119 Filed 03/18/08 Page 1 of 4
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Stipulation and Order Re Extension 

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Case No. C-03-4518 JW RS 2

WHEREAS, the Douglases have asserted “amnesty” and “abatement” affirmative

defenses to the counterclaim;

WHEREAS, except for litigation as to these affirmative defenses, this case has been

stayed pending the outcome of a criminal tax proceeding in the S.D.N.Y, United States v. Stein,

No. CR 05-888, pursuant to the Court’s Order Granting in Part and Denying in Part United

States’ Motion for Stay; Vacating Order to Consolidate, entered on July 17, 2006;

WHEREAS, on November 15, 2007, in accordance with a deadline established by a

stipulated order entered on November 5, 2007, the United States timely filed its United States’

Motion for Partial Summary Judgment Disposing of Affirmative Defenses to Counterclaim,

noting it for hearing on January 28, 2008;

WHEREAS, on December 22, 2007, the United States filed its United States’ Notice of

Continuance of Hearing on Motion for Partial Summary Judgment from January 28, 2008 to

April 7, 2008; 

WHEREAS, on January 2, 2008, the Court appended an order to the United States’

Notice of Continuance of Hearing on Motion for Partial Summary Judgment from January 28,

2008 to April 7, 2008, which order provides in full:

* * * ORDER * * * 

In light of the government’s notice of continuance of hearing of its Motion for Partial

Summary Judgment re: Affirmative Defenses, the Court deems the current motion as

withdrawn in an effort to clear its docket–as the motion was originally filed on November 15,

2007. The government shall renotice its motion in accordance with the Local Civil Rules of

Court (35 days before the date of the hearing).

WHEREAS, the United States did not renotice its motion for hearing on April 7, 2008

because the parties were (and still are ) engaged in settlement discussions which, if successful,

will resolve the complaint and counterclaim and result in a complete dismissal of this action; 

WHEREAS, the United States needs additional time to consider a written settlement offer

the Douglases made on February 20, 2008 (under the circumstances of this case, if this offer or

an amended version thereof receives a favorable recommendation from the Justice Department,

Tax Division, Civil Trial Section, Western Region, it would also need to receive a favorable

Case 5:03-cv-04518-JW Document 119 Filed 03/18/08 Page 2 of 4
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Stipulation and Order Re Extension 

to File Notice of Hearing

Case No. C-03-4518 JW RS 3

recommendation from the Tax Division’s Office of Review; then, final authority to accept the

offer would rest with the Associate Attorney General of the United States).

WHEREAS, the United States wishes to reserve the right to renote its pending motion for

partial summary judgment in the event the parties’ settlement discussions are not successful.

NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED, subject to the

Court’s approval, that the United States shall have an extension of time through May 9, 2008 in

which to file a new notice of hearing on its pending motion for partial summary judgment. If

such a notice of hearing is filed, the new hearing date set forth therein shall be June 16, 2008.

McDERMOTT, WILL & EMERY LLP

Dated: March 7, 2008 /s/ Mark H. Churchill 

CHRISTOPHER KLIEFOTH

MARK H. CHURCHILL

ERIC S. JOHNSON

600 13 Street, N.W. th

Washington, D.C. 20005-3096

Telephone: (202) 756-8000

Facsimile: (202) 756-8087

Attorneys for NEAL M. DOUGLAS AND

CHRISTINE R. DOUGLAS

SCOTT N. SCHOOLS

United States Attorney

CYNTHIA STIER

Assistant U.S. Attorney

Dated: March 6, 2008 /s/ W. Carl Hankla 

W. CARL HANKLA

JOSEPH A. SERGI 

GOUD P. MARAGANI

JUSTIN S. KIM

Trial Attorneys, Tax Division

U.S. Department of Justice

P.O. Box 683, Ben Franklin Station

Washington, D.C. 20044

Telephone: (202) 307-6448

Facsimile : (202) 307-0054

Attorneys for Defendant and Plaintiff on

Counterclaim UNITED STATES OF AMERICA

Case 5:03-cv-04518-JW Document 119 Filed 03/18/08 Page 3 of 4
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Stipulation and Order Re Extension 

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Case No. C-03-4518 JW RS 4

PURSUANT TO THE ABOVE STIPULATION, IT IS SO ORDERED.

Dated: 

JAMES WARE

United States District Judge

*** ORDER ***

 To accommodate the parties' settlement efforts, the Court GRANTS the above Stipulation. 

However, since this is a 2003 case, the Court has a strong interest in clearing it from the Court's 

docket. Accordingly, the parties shall in good faith reduce their settlement in writing between 

now and the government's deadline for renoticing its dispositive motion on May 9, 2008. The 

hearing on the government's Motion for Summary Judgment is set for June 16, 2008 at 9 A.M. 

The parties may not Stipulate to a different hearing date. 

Dated: March 17, 2008 _______________________________ 

 JAMES WARE 

 United States District Judge 

Case 5:03-cv-04518-JW Document 119 Filed 03/18/08 Page 4 of 4