1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

McGREGOR W. SCOTT

United States Attorney

YOUNGNA LEE

Trial Attorney, Tax Division

U.S. Department of Justice

P.O. Box 683

Ben Franklin Station

Washington, D.C. 20044-0683

Telephone: (202) 514-6061

E-mail: youngna.lee@usdoj.gov

Attorneys for the United States of America

IN THE UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF CALIFORNIA

)

LAL MANAGEMENT, INC., RAAJ )

FOODS CORPORATION, and )

PRIDE GOODS CORPORATION, )

)

Plaintiffs, )

v. )

)

UNITED STATES OF AMERICA, )

)

Defendant. )

 )

Case No. CIV-S-04-2679-GEB-PAN

RESPONSE TO ORDER TO SHOW CAUSE

AND STIPULATION TO DISMISS

COMPLAINT AND [PROPOSED] ORDER

THEREON

The United States of America and Lal Management, Inc., Raaj Foods Corporation and

American Pride Foods Corporation, by their counsel stipulate as follows:

1. On December 20, 2004, the plaintiffs commenced the above-captioned action by

filing a Complaint for Review of Ruling of Appeals Office of the Internal Revenue Service (the

“Complaint”).

2. The United States’ sought an extension of time, until March 22, 2005, to file and

serve its response to Complaint to allow the parties, among other things, to pursue resolution of

this matter without undue litigation.

3. The United States answered the Complaint on March 22, 2005, and a scheduling

conference was set for May 9, 2005, at 9:00 a.m. A joint status report was due to be filed no later

than April 25, 2005.

4. Counsel for the plaintiffs and the United States have been pursuing resolution of

the above-captioned case, and prior to the date the joint status report was due it appeared likely

Case 2:04-cv-02679-GEB-PAN Document 12 Filed 05/13/05 Page 1 of 3
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

-2-

that the case would be resolved.

5. On April 25, 2005, counsel for the United States contacted by telephone counsel

for the plaintiffs, to discuss the preparation of the joint status report and/or other resolution of

this matter. Counsel for the plaintiffs was unavailable and could not be reached by telephone.

6. Thereafter, the plaintiffs informed their counsel that the matter could be resolved

without further litigation.

7. The joint status conference set for June 6, 2005, at 9:00 a.m. is vacated.

8. The Complaint is dismissed, with prejudice.

//

//

//

//

//

//

//

//

//

//

//

//

//

//

//

//

//

//

//

Case 2:04-cv-02679-GEB-PAN Document 12 Filed 05/13/05 Page 2 of 3
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1 The parties are warned thatsettlement negotiations are not an excuse for failure to comply with

a Rule 16 Scheduling Order. See Martin Family Trust v. NECO/Nostalgia Enters. Co., 186 F.R.D. 601, 603

(E.D. Cal. 1999) (finding plaintiff's failure to submit status report because it was engaged in settlement

negotiations to be sanctionable conduct). 

-3-

9. The parties hereto shall bear their respective costs, including attorneys fees and

other costs, associated with this litigation.

DATED this 11th day of May, 2005.

McGREGOR W. SCOTT

United States Attorney

/s/ - YoungNa Lee 

YOUNGNA LEE

Trial Attorney, Tax Division

U.S. Department of Justice

P.O. Box 683

Ben Franklin Station

Washington, DC 20044-0683

Telephone: (202) 514-6061

Fax: (202) 307-0054

E-mail: youngna.lee@usdoj.gov

Attorneys for the United States of America

/s/ - R. Todd Luoma 

R. TODD LUOMA

Law Offices of Richard Todd Luoma

3600 American River Drive, Suite 135

Sacramento, California 95864

Tel: (916) 971-2440

Fax: (916) 971-2444

E-mail: rtluoma@taxlitigator.net

Attorney for the Plaintiffs

IT IS SO ORDERED.1

DATED: May 12, 2005

/s/ Garland E. Burrell, Jr.

GARLAND E. BURRELL, JR.

United States District Judge

Case 2:04-cv-02679-GEB-PAN Document 12 Filed 05/13/05 Page 3 of 3