Opinion ID: 389573
Heading Depth: 2
Heading Rank: 2

Heading: Pre-Hearing Discovery

Text: 20 Weinstein may have failed in his burden of proof because the district court denied his request for pre-hearing discovery. We recognize the anomaly of placing a burden of proof upon the taxpayer and then denying access to what may be the very information needed to meet that burden. See United States v. Serubo, 604 F.2d 807, 812 (3d Cir. 1979). Should we determine that discovery was improperly denied in this case, a proper remedy would be to remand for discovery and an evidentiary hearing at which Weinstein could present the fruits of that discovery. 21 In Church of Scientology, we held that the district court has great discretion to restrict or deny discovery. See also United States v. Southern Tanks, Inc., 619 F.2d 54 (10th Cir. 1980); and United States v. Ladd, 471 F.Supp. 1150 (N.D.Tex.1979). Discovery in a summary enforcement proceeding is the exception rather than the rule. Church of Scientology, supra, at 824. 22 The Supreme Court in LaSalle did not address the taxpayer's right to discovery. Nevertheless, the Third Circuit has interpreted LaSalle to suggest guidelines for discovery. E. g., United States v. Serubo, 604 F.2d 807, 812-13 (3d Cir. 1979); United States v. Genser (Genser II), 595 F.2d 146, 152 (3d Cir. 1979), later appeal, 602 F.2d 69 (3d Cir.), cert. denied, 444 U.S. 928, 100 S.Ct. 269, 62 L.Ed.2d 185 (1979). At a minimum, the taxpayer is entitled to discover the identities of the investigating agents, the date the investigation began, the dates of all summonses issued, and the nature of any contacts between the investigating agents and the Department of Justice. Genser II, supra at 152. Further discovery, carefully tailored to meet the purpose of the inquiry, may be permitted at the court's discretion. Id. 23 Some courts routinely allow limited pre-hearing discovery in enforcement proceedings. E. g., United States v. Garden State National Bank, 607 F.2d 61 (3d Cir. 1979); Genser II, supra at 152. Other courts allow limited discovery only if the taxpayer can make a substantial preliminary showing of abuse or wrongdoing. E. g., United States v. Southern Tanks, Inc., 619 F.2d 54 (10th Cir. 1980); United States v. Chase Manhattan Bank, 598 F.2d 321 (2d Cir. 1979); United States v. Marine Midland Bank of New York, 585 F.2d 36 (2d Cir. 1979). This circuit has adopted the latter procedure. Church of Scientology, supra. Pre-hearing discovery is not generally mandated. If taxpayer's allegations are sufficient, a limited evidentiary hearing is conducted. Discovery is then warranted if the trial court is not convinced that the summonses were issued for a proper purpose. See also United States v. Salter, 432 F.2d 697 (1st Cir. 1970) and United States v. McCarthy, 514 F.2d 368 (3d Cir. 1975). Therefore the district court did not abuse its discretion in denying Weinstein's request for prehearing discovery.