Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_03-cv-04518/USCOURTS-cand-5_03-cv-04518-8/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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MCDERMOTT , WILL 

& EMERY

ATTORNEYS AT LAW

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STIPULATED REQUEST FOR ORDER EXTENDING 

DISCOVERY ON SPECIFIED ASPECTS OF THE 

ACCURACY-RELATED PENALTY AND 

[PROPOSED] ORDER 

CASE NO. C-03-04518 JW-RS 

Daniel E. Alberti (State Bar No. 68620)

McDERMOTT, WILL & EMERY

3150 Porter Drive

Palo Alto, CA 94304

Telephone: (650) 813-5000

Facsimile: (650) 813-5100

Pro Hac Vice:

Christopher Kliefoth

Mark H. Churchill

McDERMOTT WILL & EMERY LLP

600 13th Street, N.W.

Washington, D.C. 20005

Telephone: (202) 756-8000

Facsimile: (202) 756-8087

Attorneys for Plaintiffs and Counterclaim Defendants,

NEAL M. DOUGLAS and CHRISTINE R. 

DOUGLAS

UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

NEAL M. DOUGLAS and CHRISTINE R. 

DOUGLAS,

Plaintiffs,

v.

UNITED STATES OF AMERICA,

Defendant and Plaintiff 

on Counterclaim,

v.

NEAL M. DOUGLAS and CHRISTINE R. 

DOUGLAS,

Defendant on 

Counterclaim.

CASE NO. C03-04518 JW RS

ELECTRONIC CASE FILING

STIPULATED REQUEST FOR ORDER 

EXTENDING DISCOVERY SCHEDULE 

ON SPECIFIED ASPECTS OF THE 

ACCURACY-RELATED PENALTY AND 

[PROPOSED] ORDER

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Case 5:03-cv-04518-JW Document 78 Filed 01/05/07 Page 1 of 6
MCDERMOTT , WILL 

& EMERY

ATTORNEYS AT LAW

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STIPULATED REQUEST FOR ORDER EXTENDING 

DISCOVERY ON SPECIFIED ASPECTS OF THE 

ACCURACY-RELATED PENALTY AND 

[PROPOSED] ORDER

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CASE NO. C-03-04518 JW-RS

WHEREAS, on October 25, 2006, the Court entered an Order granting the stipulated 

request of the United States and Plaintiffs (collectively, “the Parties”) for an extension of the 

following deadlines in the above-captioned matter: (1) Initial Discovery1deadline on specified 

aspects of the accuracy-related penalty counterclaim under 26 U.S.C. § 6662, (2) summary 

judgment motion deadline on the specified aspects of accuracy-related penalty counterclaim 

under 26 U.S.C. § 6662, and (3) hearing on summary judgment motions related to the specified 

aspects of accuracy-related penalty counterclaim under 26 U.S.C. § 6662;

WHEREAS on December 1 and December 8, 2006, the United States produced privilege 

logs related to Plaintiffs’ discovery requests, which logs cover, in total, hundreds of pages of 

entries of withheld and redacted documents;

WHEREAS Plaintiffs have informed the United States that they will be challenging 

certain claims of privilege asserted by the United States including, in particular, certain assertions 

of the deliberative process privilege, which comprise a significant portion of the United States’ 

privilege logs;

WHEREAS Plaintiffs’ analysis of the United States’ privilege logs is ongoing and may

lead to their filing a motion to compel pursuant to Federal Rule of Civil Procedure 37;

WHEREAS Plaintiffs cannot proceed with deposition discovery until they have received 

all responsive discovery to their discovery requests, and, therefore, must reach a resolution on any 

privilege challenges before undertaking and completing deposition discovery;

WHEREAS the United States has acknowledged Plaintiffs’ position and also has 

suspended further deposition discovery during the Initial Discovery period so that any additional 

depositions will coincide with those taken by Plaintiffs;

WHEREAS, the Parties thus agree that a further extension is required of the above-noted 

deadlines related to specified aspects of the accuracy-related penalty counterclaim;

1 The Initial Discovery period was created for the Plaintiffs and the government to litigate specified aspects of the 

government’s accuracy-related penalty counterclaim (as determined by this Court’s order adopting the stipulation of 

the Parties). Other document discovery is deemed ongoing during the pendency of the stay.

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Case 5:03-cv-04518-JW Document 78 Filed 01/05/07 Page 2 of 6
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ATTORNEYS AT LAW

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STIPULATED REQUEST FOR ORDER EXTENDING 

DISCOVERY ON SPECIFIED ASPECTS OF THE 

ACCURACY-RELATED PENALTY AND 

[PROPOSED] ORDER

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CASE NO. C-03-04518 JW-RS

WHEREAS, other than the Initial Discovery period for specified aspects of the accuracyrelated penalty counterclaim and other ongoing document discovery, this matter remains on stay

pending completion of the Stein criminal tax shelter case in the United States District Court for 

the S.D.N.Y. (Kaplan, J.); 

WHEREAS the Stein trial is currently scheduled to commence on September 17, 2007, 

and, accordingly, the Parties submit that this stipulated request for an extension of dates related to 

litigation of the specified aspects of the accuracy-related penalty counterclaim will not result in 

undue delay of this proceeding;

NOW, THEREFORE, IT IS STIPULATED AND AGREED, by and between the Parties, 

subject to the Court’s approval, that:

The following schedule for discovery and briefing on that portion of the accuracy-related 

penalty excepted from the stay applies:

Event Current Deadline Requested Deadline

End of Initial Discovery on 

specified aspects of the accuracyrelated penalty counterclaim 

(under IRC § 6662)

January 5, 2007 The later of March 30, 

2007, or 30 days after this 

Court’s ruling on any 

motion to compel brought

by Plaintiffs related to the 

United States’ privilege 

claims (described herein)

Summary judgment motion 

deadline for specified aspects of 

the accuracy-related penalty 

counterclaim (under IRC § 6662)

February 5, 2007 30 days following the 

close of Initial Discovery

Hearing on summary judgment 

motions related to specified 

aspects of the accuracy-related 

penalty counterclaim (under IRC 

§ 6662)

March 5, 2007 To be set by Court

The Parties have included a [Proposed] Order for the Court’s consideration.

--- 60 --- 60---------------------- June 04 2007 @ 9:00 AM

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Case 5:03-cv-04518-JW Document 78 Filed 01/05/07 Page 3 of 6
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ATTORNEYS AT LAW

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STIPULATED REQUEST FOR ORDER EXTENDING 

DISCOVERY ON SPECIFIED ASPECTS OF THE 

ACCURACY-RELATED PENALTY AND 

[PROPOSED] ORDER

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CASE NO. C-03-04518 JW-RS

Respectfully submitted,

Attorneys for Plaintiffs Neal M. Douglas Attorneys for Defendant

and Christine R. Douglas United States of America

/s/ Mark H. Churchill /s/ W. Carl Hankla

Christopher Kliefoth (admitted pro hac vice) W. Carl Hankla 

Mark H. Churchill (admitted pro hac vice) Joseph A. Sergi

Eric S. Johnson (admitted pro hac vice) Goud P. Maragani

MCDERMOTT WILL & EMERY LLP Justin S. Kim

600 13th Street, N.W. Trial Attorneys, Tax Division

Washington, DC 20005 United States Department of Justice

(202) 756-8000 – Telephone P.O. Box 683 Ben Franklin Station

(202) 756-8087 – Facsimile Washington, D.C. 20044

(202) 305-0868 – Telephone

Daniel E. Alberti (CSBN 68620)

MCDERMOTT WILL & EMERY LLP

3150 Porter Drive

Palo Alto, CA 94303-1212

(650) 813-5000 – Telephone 

(650) 813-5100 – Facsimile 

Dated: January 4, 2007

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Case 5:03-cv-04518-JW Document 78 Filed 01/05/07 Page 4 of 6
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& EMERY

ATTORNEYS AT LAW

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STIPULATED REQUEST FOR ORDER EXTENDING 

DISCOVERY ON SPECIFIED ASPECTS OF THE 

ACCURACY-RELATED PENALTY AND 

[PROPOSED] ORDER

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CASE NO. C-03-04518 JW-RS

[PROPOSED] ORDER

It is hereby ORDERED that those matters excepted from the stay (pursuant to the Court’s 

Order dated July 7, 2006) as adjudged above are subject to the following schedule:

Event Deadline

End of Initial Discovery on specified aspects of

the accuracy-related penalty counterclaim

(under IRC § 6662)

The later of March 30, 2007, or 30 days after 

this Court’s ruling on any motion to compel 

brought by Plaintiffs related to the United 

States’ privilege claims (described herein)

Summary judgment motion deadline for 

specified aspects of the accuracy-related 

penalty counterclaim (under IRC § 6662)

30 days following the close of Initial Discovery

Hearing on summary judgment motions related 

to specified aspects of the accuracy-related 

penalty counterclaim (under IRC § 6662)

To be set by Court

Dated: January __, 2007 __

Honorable James Ware

United States District Judge

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Case 5:03-cv-04518-JW Document 78 Filed 01/05/07 Page 5 of 6
MCDERMOTT , WILL 

& EMERY

ATTORNEYS AT LAW

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STIPULATED REQUEST FOR ORDER EXTENDING 

DISCOVERY ON SPECIFIED ASPECTS OF THE 

ACCURACY-RELATED PENALTY AND 

[PROPOSED] ORDER

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CASE NO. C-03-04518 JW-RS

CERTIFICATE OF SERVICE

I, Mark H. Churchill, an attorney with the law firm of McDermott Will & Emery LLP, 

hereby certify that a true and correct copy of the foregoing was served this 4th day of January

2007, on the service list established for this proceeding pursuant to L.R. 5-4 and the rules for 

electronic case filings in this District.

/s/ Mark H. Churchill

WDC99 1330589-1.066310.0011

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