Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_03-cv-04518/USCOURTS-cand-5_03-cv-04518-10/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

Eric S. Johnson

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,

Defendants 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

Case 5:03-cv-04518-JW Document 85 Filed 04/03/07 Page 1 of 7
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, and again on January 5, 2007, the Court entered 

Orders granting stipulated requests of the United States and Plaintiffs (collectively, “the Parties”) 

for extensions of the following deadlines in the above-captioned matter: (1) Initial Discovery1

deadline 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 in response to Plaintiffs’ requests for the production of documents under Fed. 

R. Civ. P. 34, the United States has provided Plaintiffs with documents and to date, six privilege 

logs totaling nearly 400 pages, which required extensive review and analysis by Plaintiffs to 

determine if the asserted privileges were applicable;

WHEREAS, the Plaintiffs’ need to review the United States’ privilege logs and, in 

particular, the United States’ extensive assertion of the deliberative process privilege, led the 

Parties to seek by stipulated request dated January 5, 2007, the most recent extension of the 

schedule for Initial Discovery and briefing on certain accuracy-related penalty issues;

WHEREAS the Initial Discovery period was extended by order of this Court to the latter 

of March 30, 2007 or sixty days from this Court’s ruling on any motion brought by Plaintiffs to 

compel the production of documents withheld under the United States’ privilege claims;

WHEREAS the Parties’ have worked diligently and in good faith to resolve certain 

disputed deliberative privilege process claims during the period from January 5, 2007 to date;

WHEREAS since the last requested extension of January 5, 2007, the pendency of 

various challenges by Plaintiffs to privilege claims by the United States led both parties to 

suspend the taking of any deposition discovery to this point;

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). Document discovery related to the accuracy-related counterclaim is deemed ongoing during the 

pendency of the stay.

Case 5:03-cv-04518-JW Document 85 Filed 04/03/07 Page 2 of 7
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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, the Parties have sufficiently resolved a number of challenges made to date 

related to the United States’ assertion of the deliberative process privilege;

WHEREAS, most recently on March 27 and March 28, 2007, the Parties met and 

conferred regarding outstanding issues related to the Plaintiffs’ privilege challenges and 

determined that no issues were ripe for a motion to compel;

WHEREAS, Plaintiffs do not waive any right to challenge the privilege assertions of the 

United States but also do not require the further suspension of deposition discovery pending 

resolution of certain challenges on privilege;

WHEREAS, the Parties agree that an additional extension of sixty days in the Initial 

Discovery period is necessary in order to permit the additional document and deposition 

discovery that remains, as well as any necessary motions practice;

WHEREAS, the Parties agree that the last day to file any discovery motions will be 

extended to the last day of the Initial Discovery period as set by the Court’s order;

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:

In light of the foregoing, a new schedule is required.

Case 5:03-cv-04518-JW Document 85 Filed 04/03/07 Page 3 of 7
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

The following revised schedule for discovery and briefing on that portion of the accuracyrelated 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)

The later of March 30, 

2007, or 60 days after this 

Court’s ruling on any 

motion to compel brought 

by Plaintiffs related to the 

United States’ privilege 

claims (described herein)

June 1, 2007

Summary judgment motion 

deadline for specified aspects of 

the accuracy-related penalty 

counterclaim (under IRC § 6662)

60 days following the 

close of Initial Discovery

30 days following the 

close of Initial Discovery 

as determined by the 

Court

Hearing on summary judgment 

motions related to specified 

aspects of the accuracy-related 

penalty counterclaim (under IRC 

§ 6662)

June 4, 2007 @ 9:00 a.m. To be set by the Court

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

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

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----------------------------

----------------------------

-------- July 2 2007

--------------------------- 

August 6 2007 @ 9:00 AM

Case 5:03-cv-04518-JW Document 85 Filed 04/03/07 Page 4 of 7
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

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: March 30, 2007

Case 5:03-cv-04518-JW Document 85 Filed 04/03/07 Page 5 of 7
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

[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)

June 1, 2007

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 the Court

Dated: April __, 2007 __

Honorable James Ware

United States District Judge

----------------------------------------------- 

---------------- July 2 2007

--------------------------- 

August 6 2007 @ 9:00 AM

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Case 5:03-cv-04518-JW Document 85 Filed 04/03/07 Page 6 of 7
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 30th day of March 

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

Case 5:03-cv-04518-JW Document 85 Filed 04/03/07 Page 7 of 7