Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_03-cv-04518/USCOURTS-cand-5_03-cv-04518-13/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 U.S.’s Dispositive Motion

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. ) ALLOWING UNITED STATES TO FILE 

) DISPOSITIVE MOTION AS TO

) PLAINTIFFS’ AFFIRMATIVE DEFENSES

NEAL M. DOUGLAS and CHRISTINE R. ) 

DOUGLAS, )

)

Defendants on )

Counterclaim. )

 )

WHEREAS, in this income tax refund suit by Neal and Christine Douglas seeking over

$15 million plus interest, the United States filed a 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

Judge James Ware

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 109 Filed 11/05/07 Page 1 of 3
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Stipulation and Order Re U.S.’s Dispositive Motion

Case No. C-03-4518 JW RS 2

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

defenses to the counterclaim;

WHEREAS the parties disagreed about the proper scope of discovery as to these

affirmative defenses;

WHEREAS, the Douglases moved to compel the United States to respond to certain

discovery requests and to produce certain witnesses for deposition, and the United States

opposed the Douglases’ motion and cross-moved for a protective order;

WHEREAS, the United States contended, among other things, that the Douglases’

discovery should be barred because their abatement and amnesty affirmative defenses could be

disposed of by summary judgment;

WHEREAS, on October 16, 2007, Magistrate Judge Richard Seeborg entered an Order

Granting in Part and Denying in Part Motion to Compel and Motion for Protective Order (the

“Discovery Order”);

WHEREAS, the Discovery Order required the United States to respond to the Douglases’

discovery as to the affirmative defenses (but not as to “similarly situated” taxpayers), but it also

provided for a stay to allow the United States to raise its legal arguments before Judge James

Ware in a dispositive motion:

In light of the concerns raised by the United States, however, its obligation to produce

documents or witnesses shall be stayed for 30 days. If, within those 30 days, the United

States obtains leave to file, and does file, a dispositive motion addressing the merits of the

Douglases’ amnesty and abatement defenses, then the obligation to produce documents and

witnesses shall automatically be stayed pending the earliest of: (1) entry of any order by the

presiding judge denying such dispositive motion, (2) entry of any order by the presiding judge

allowing discovery under Rule 56(f), or; (3) entry of any other order of the Court providing

that the discovery should go forward. 

WHEREAS, leave for the United States to file a dispositive motion addressing the merits

of the amnesty and abatement affirmative defenses is required because the deadline for so doing

expired on July 2, 2007, while the parties’ discovery motions were pending;

WHEREAS, the parties have agreed that it would be in the interest of judicial economy to

stipulate for leave for the United States to file its dispositive motion;

NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED, by and between

the parties, subject to the Court’s approval, that:

Case 5:03-cv-04518-JW Document 109 Filed 11/05/07 Page 2 of 3
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Stipulation and Order Re U.S.’s Dispositive Motion

Case No. C-03-4518 JW RS 3

1. Consistent with the Discovery Order, the United States shall have leave to file, on

or before November 15, 2007, a dispositive motion addressing the merits of the Douglases’

“amnesty” and “abatement” affirmative defenses to the United States’ counterclaim. 

2. The Douglases do not waive their right to seek clarification and/or reconsideration

of the Discovery Order.

McDERMOTT, WILL & EMERY LLP

Dated: October 31, 2007 /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: October 31, 2007 /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

PURSUANT TO THE ABOVE STIPULATION, IT IS SO ORDERED.

Dated: 

JAMES WARE

United States District Judge

November 5, 2007

 The government's motion shall be noticed for hearing no earlier than January 28, 2008. 

Dated: November 5, 2007 _______________________________ 

 JAMES WARE 

United States District Judge

Case 5:03-cv-04518-JW Document 109 Filed 11/05/07 Page 3 of 3