FI L ED
U.S. COURT OF APPEAL S

EL EVENTH CI RCUI T

J UNE 25, 2009

THOMAS K. KAH

N
CL ERK [ D O N O T P U B L I S H ]

I N T H E U N I T E D S T A T E S C O U R T O F A P P E A L S

F O R T H E E L E V E N T H C I R C U I T

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

N o

. 0 8

- 1 6 1 6 6

N o n

- A r g u m e n t C a l e n d a r

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D

. C

. D o c k e t N o

. 0 7

- 0 0 3 7 2

- C V

- F T M

- 9 9

- D N F

S H E R I R E D E K E R

- B A R R Y

,

P l a i n t i f f

- A p p e l l a n t

,

v e r s u s

U N I T E D S T A T E S O F A M E R I C A

, D e f e n d a n t

- A p p e l l e e ,

A M S O U T H B A N K

, S U S A N S T O N I E R

,

D e f e n d a n t s

.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

A p p e a l f r o m t h e U n i t e d S t a t e s D i s t r i c t C o u r t

f o r t h e M i d d l e D i s t r i c t o f F l o r i d a

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

( J u n e 2 5

, 2 0 0 9 )

B e f o r e C A R N E S

, H U L L a n d W I L S O N

, C i r c u i t J u d g e s

.P E R C U R I A M :

S h e r i R e d e k e r

- B a r r y , a p p e a l i n g p r o s e , c h a l l e n g e s t h e d i s t r i c t c o u r t ’ s d e n i a l

o f h e r m o t i o n t o q u a s h a n I n t e r n a l R e v e n u e S e r v i c e ( “ I R S ” ) t a x s u m m o n s t o

A m S o u t h f

o r R e d e k e r

- B a r r y ’ s b a n k r e c o r d s

. A f t e r r e v i e w , w e a f

f i r m

.

T h i s c a s e c o m e s b a c k t o u s a f t e r w e v a c a t e d t h e d e n i a l o f R e d e k e r

- B a r r y ’ s

m o t i o n t o q u a s h a n d r e m a n d e d “ t o t h e d i s t r i c t c o u r t f o r d i s c o v e r y a n d

c o n s i d e r a t i o n o f w h e t h e r t h e I R S s u m m o n s o f R e d e k e r

- B a r r y ' s r e c o r d s f r o m

A m S o u t h [ b a n k ] s h o u l d b e q u a s h e d

. ” S e e R e d e k e r

- B a r r y v

. U n i t e d S t a t e s , 2 1 8

F e d

. A p p x

. 8 6 8

, 8 6 9 ( 1 1 t h C i r

. 2 0 0 7 ) ( u n p u b l i s h e d ) ( c o n c l u d i n g t h a t “ A m S o u t h ' s

c o m p l i a n c e w i t h t h e I R S s u m m o n s d i d n o t r e n d e r t h i s c a s e m o o t b e c a u s e t h e

d i s t r i c t c o u r t c o u l d h a v e p r o v i d e d a p a r t i a l r e m e d y b y o r d e r i n g t h e I R S t o d e s t r o y

o r r e t u r n a l l c o p i e s o f t h e d o c u m e n t s p r o d u c e d b y A m S o u t h ” )

. 1

R e d e k e r

- B a r r y d i d n o t f i l e a n y t a x r e t u r n s f

o r t h e y e a r s 2 0 0 1

- 2 0 0 4

. I n

S e p t e m b e r 2 0 0 4

, I R S a g e n t S u s a n S t o n i e r w a s a s s i g n e d t o d e t e r m i n e R e d e k e r

B a r r y ’ s t a x l i a b i l i t i e s f

o r t h o s e y e a r s

. B u t R e d e k e r

- B a r r y r e f u s e d t o p r o v i d e a n y

r e c o r d s

. I n M a y 2 0 0 5

, S t o n i e r p r o p e r l y i s s u e d a n d s e r v e d a n a d m i n i s t r a t i v e

s u m m o n s o n A m S o u t h f o r R e d e k e r

- B a r r y ’ s b a n k r e c o r d s f o r 2 0 0 0

- 2 0 0 4 t o

We have a ddresse d Redeke r-B arr y ' s tax issues on other occ asions as we ll. See 1

Redeke r-B arr

y v. United States, 476 F.3d 1189, 1190 ( 11th Cir. 2007) (af firming dismiss al of
denial of a

collections due pr ocess he aring on subject matter jur isdiction grounds)

.

2d e t e r m i n e w h e t h e r R e d e k e r

- B a r r y h a d e a r n e d a n y t a x a b l e i n c o m e f o r t h o s e y e a r s

.

T h e r e w a s n o p e n d i n g c r i m i n a l i n v e s t i g a t i o n a t t h a t t i m e

.

R e d e k e r

- B a r r y ’ s m a i n c l a i m b e f o r e t h e m a g i s t r a t e j u d g e , t h e d i s t r i c t c o u r t

,

a n d n o w o n a p p e a l

, i s t h a t t h e I R S i s s u e d t h e s u m m o n s f o r a n i m p r o p e r p u r p o s e

.

T h a t i s , s h e c o n t e n d s t h a t t h e I R S i m p e r m i s s i b l y i s s u e d t h e s u m m o n s t o g a t h e r

e v i d e n c e f

o r a c r i m i n a l i n v e s t i g a t i o n

. O n r e m a n d

, t h e m a g i s t r a t e j u d g e a u t h o r i z e d

f o u r m o n t h s o f d i s c o v e r y a n d a n e v i d e n t i a r y h e a r i n g t o d e t e r m i n e w h e t h e r t h i s w a s

t r u e

. T h e g o v e r n m e n t t h e n m o v e d f o r s u m m a r y j u d g m e n t

.

O n D e c e m b e r 1 0

, 2 0 0 7

, t h e m a g i s t r a t e j u d g e c o n d u c t e d a n e v i d e n t i a r y

h e a r i n g

. T h r e e w i t n e s s e s , i n c l u d i n g S t o n i e r , M i c h a e l T o w n s e n d

, a n d R e d e k e r

B a r r y , a l l t e s t i f

i e d

. F o l l o w i n g t h e e v i d e n t i a r y h e a r i n g , t h e m a g i s t r a t e j u d g e i s s u e d

a r e p o r t a n d r e c o m m e n d a t i o n ( “ r e p o r t ” ) c o n t a i n i n g f i n d i n g s o f f

a c t a n d

c o n c l u s i o n s o f l a w

.

A f t e r a p p l y i n g t h e p r o p e r f r a m e w o r k f

o r d e t e r m i n i n g w h e t h e r a n I R S

s u m m o n s t o a t h i r d p a r t y i s p r o p e r , s e e L a M u r a v

. U n i t e d S t a t e s , 7 6 5 F

. 2 d 9 7 4

,

9 7 9 ( 1 1 t h C i r

. 1 9 8 5 )

, a n d a f t e r e v a l u a t i n g t h e w i t n e s s e s ’ t e s t i m o n y , S t o n i e r ’ s 2

We rec ently

applied this standard in Ne ro Tra ding, L L C v. U.S. Dep’t of Tr easur y , 2

I .R.S., ___ F.3d ___, 2009 WL 1606956, at *4 (11th Cir. J une 10, 2009) ( “The Service must show: (1) that the inve stiga tion will be conducted pur suant to a leg itimate purpose, (2) that the inquiry may be re levant to the purpose , (3) that the inf ormation soug ht is not already within the
Commi ssioner' s possession, and (4) tha t the administrative steps re quired by the Code have been
followed.” (quotation marks a nd citation omitted)).

3a f

f i d a v i t

, a n d a l l e v i d e n c e s u p p o r t i n g R e d e k e r

- B a r r y ’ s c o n t e n t i o n s , t h e m a g i s t r a t e 3

j u d g e f o u n d t h a t t h e g o v e r n m e n t m e t i t s p r i m a f a c i e b u r d e n o f p r o v i n g t h a t t h e

s u m m o n s w a s p r o p e r a n d t h a t R e d e k e r

- B a r r y h a d f a i l e d t o m e e t h e r b u r d e n o f

p r o o f a s t o t h e m o t i o n t o q u a s h

. S p e c i f i c a l l y , t h e m a g i s t r a t e j u d g e f o u n d t h a t t h e

p u r p o s e o f S t o n i e r ’ s i n v e s t i g a t i o n w a s t o d e t e r m i n e t h e a m o u n t o f i n c o m e t a x d u e

f r o m t h e y e a r s 2 0 0 0

- 2 0 0 4

, t h a t S t o n i e r d i d n o t c o n d u c t t h e i n v e s t i g a t i o n i n b a d

f a i t h

, a n d t h a t S t o n i e r a c t e d w i t h i n t h e s c o p e o f h e r a u t h o r i t y t o i s s u e t h e s u m m o n s

.

T h e r e p o r t r e c o m m e n d e d t h a t t h e g o v e r n m e n t ’ s m o t i o n f o r s u m m a r y j u d g m e n t b e

g r a n t e d a n d t h e m o t i o n t o q u a s h b e d e n i e d

. R e d e k e r

- B a r r y f i l e d o b j e c t i o n s t o t h e

r e p o r t

.

O n J u n e 6

, 2 0 0 8

, t h e d i s t r i c t c o u r t o v e r r u l e d t h e o b j e c t i o n s a n d a d o p t e d t h e

l e g a l a n d f

a c t u a l f i n d i n g s i n t h e m a g i s t r a t e j u d g e ’ s r e p o r t

. I n a d d i t i o n , t h e d i s t r i c t

c o u r t t o o k j u d i c i a l n o t i c e t h a t a f t e r t h e m a g i s t r a t e j u d g e f i l e d t h e r e p o r t

, t h e

g o v e r n m e n t i n i t i a t e d c r i m i n a l p r o c e e d i n g s a g a i n s t R e d e k e r

- B a r r y

. A l t h o u g h t h e

d i s t r i c t c o u r t n o t e d t h a t t h e c r i m i n a l c h a r g e s a p p e a r e d t o b e f o r s e p a r a t e t a x y e a r s

f r o m t h o s e i n t h i s c a s e , i t s t a y e d t h e i n s t a n t c a s e a n d d i r e c t e d t h e p a r t i e s t o s u b m i t

The re port conc luded that Redeke r-B arr y failed to pre sent evidenc e on any of the ke y 3

issues. Redeker -B arr

y alleg ed that she ha d been subje ct to a cr iminal investigation since 2002 and that she spoke with L add B rown, a n I RS attorney , who told her that one of her pay ments was
ref err ed to the Criminal I nvestig ation Division. But she “did not provide a ny documentar

y evidenc e” to support that c laim. Nor did she mee t “her burden of

producing any

evidenc e” tha t the y ear s 2000-2004 wer e enc ompassed in any alleg ed investig ation.

4m e m o r a n d a a d d r e s s i n g w h e t h e r t h e s t a y s h o u l d r e m a i n i n e f f e c t u n t i l t h e r e s o l u t i o n

o f t h e c r i m i n a l p r o c e e d i n g s

. O n S e p t e m b e r 2 9

, 2 0 0 8

, t h e d i s t r i c t c o u r t l i f t e d t h e

s t a y , d e n i e d R e d e k e r

- B a r r y ’ s m o t i o n f o r r e c o n s i d e r a t i o n o f t h e J u n e 6

, 2 0 0 8 o r d e r , 4

e n t e r e d j u d g m e n t i n f

a v o r o f t h e g o v e r n m e n t

, a n d d e n i e d R e d e k e r

- B a r r y ’ s m o t i o n

t o q u a s h s u m m o n s

. R e d e k e r

- B a r r y a p p e a l e d

.

R e d e k e r

- B a r r y ’ s m a i n a r g u m e n t o n a p p e a l i s t h a t t h e I R S i m p e r m i s s i b l y

i s s u e d t h e s u m m o n s i n b a d f a i t h a n d f

o r t h e p u r p o s e o f c o n d u c t i n g a c r i m i n a l

i n v e s t i g a t i o n

. S h e c o n t e n d s t h a t t h e d i s t r i c t c o u r t e r r e d i n d e n y i n g h e r m o t i o n t o

q u a s h a n d i n e n t e r i n g s u m m a r y j u d g m e n t f o r t h e g o v e r n m e n t

. W e r e v i e w a d e n i a l

o f a p e t i t i o n t o q u a s h a n I R S s u m m o n s f o r c l e a r e r r o r , s e e N e r o T r a d i n g , L L C v

.

U

. S

. D e p ' t o f T r e a s u r y , I

. R

. S

. ,

_ _ _ F

. 3 d

_ _ _ , 2 0 0 9 W L 1 6 0 6 9 5 6

, a t * 4 ( 1 1 t h C i r

.

J u n e 1 0

, 2 0 0 9 ) ; U n i t e d S t a t e s v

. M o r s e , 5 3 2 F

. 3 d 1 1 3 0

, 1 1 3 1 ( 1 1 t h C i r

. 2 0 0 8 ) ( p e r

c u r i a m )

, a n d a n e n t r y o f s u m m a r y j u d g m e n t d e n o v o , S w i s h e r I n t ’ l

, I n c

. v

. S c h a f e r ,

5 5 0 F

. 3 d 1 0 4 6

, 1 0 5 0 ( 1 1 t h C i r

. 2 0 0 8 )

. R e d e k e r

- B a r r y a l s o c h a l l e n g e s t h e

m a g i s t r a t e j u d g e ’ s r u l i n g s w i t h r e s p e c t t o , i n t e r a l i a , w h e t h e r s h e p r o p e r l y s e r v e d

A m S o u t h

, t h e d e n i a l o f e x t r a t i m e f o r d i s c o v e r y , t h e d e n i a l o f h e r m o t i o n f o r l e a v e

t o r e s p o n d t o t h e r e s p o n d e n t ’ s o p p o s i t i o n t o h e r r e q u e s t f o r a n e x t e n s i o n o f t i m e

Redeke r-B arr

y initially moved to maintain the stay until her motion for rec onsideration 4 of the June 6, 2008 order w as denie d. But on Aug ust 18, 2008, she filed anothe r motion for

rec onsideration alter

natively asking for the sta

y to be lifted so that she c ould appea l the underly ing r

uling.

5f

o r d i s c o v e r y , a n d t h e d e n i a l o f h e r m o t i o n s t o c o m p e l d i s c o v e r y

. A f t e r r e v i e w , w e

c o n c l u d e t h a t R e d e k e r

- B a r r y ’ s c l a i m s o n a p p e a l l a c k m e r i t

. I n p a r t i c u l a r , R e d e k e r

B a r r y h a s s h o w n n o c l e a r e r r o r i n t h e f a c t

- f i n d i n g s a d o p t e d b y t h e d i s t r i c t c o u r t

.

N o r h a s R e d e k e r

- B a r r y s h o w n a n y r e v e r s i b l e e r r o r i n t h e d i s t r i c t c o u r t ’ s

c o n c l u s i o n s o f l a w

.

A s t o R e d e k e r

- B a r r y ’ s c h a l l e n g e s t o t h e m a g i s t r a t e j u d g e ’ s h a n d l i n g o f t h e

c a s e , d i s c o v e r y r u l i n g s , a n d o t h e r n o n

- d i s p o s i t i v e r u l i n g s , w e d i s c e r n n o e r r o r

.

R e d e k e r

- B a r r y d i d n o t o b j e c t t o t h e m a g i s t r a t e j u d g e ’ s n o n

- d i s p o s i t i v e r u l i n g s

w i t h i n t e n d a y s

. T h e r e f o r e , s h e h a s w a i v e d t h e m

. S e e S m i t h v

. S c h o o l B d

. o f

O r a n g e C o u n t y , 4 8 7 F

. 3 d 1 3 6 1

, 1 3 6 5 ( 1 1 t h C i r

. 2 0 0 7 ) ( c i t i n g F e d

. R

. C i v

. P

. 7 2 ) ;

s e e a l s o F a r r o w v

. W e s t

, 3 2 0 F

. 3 d 1 2 3 5

, 1 2 4 9 n

. 2 1 ( 1 1 t h C i r

. 2 0 0 3 ) ( a p p l y i n g s a m e

r u l e t o p r o s e l i t i g a n t )

. E v e n i f s h e h a d o b j e c t e d w i t h i n t h e a u t h o r i z e d t i m e , w e s t i l l

w o u l d f i n d n o e r r o r i n t h e m a g i s t r a t e j u d g e ’ s r u l i n g s

. W e r e v i e w d i s c o v e r y r u l i n g s

f o r a b u s e o f d i s c r e t i o n , s e e A d k i n s v

. C h r i s t i e , 4 8 8 F

. 3 d 1 3 2 4

, 1 3 3 0 ( 1 1 t h C i r

.

2 0 0 7 )

, a n d f

i n d n o s u c h a b u s e h e r e

.

A F F I R M E D

.

6