Opinion ID: 72950
Heading Depth: 3
Heading Rank: 2

Heading: The Commissioner

Text: The Commissioner contends (contrary to taxpayers’ claim that the Tax Court never offered the parties a new trial and that the taxpayers never declined a new trial), that Chief Judge Hamblen, at the April 5, 1995, status conference, explained that a new trial was one of the three options [in addition to reassignment or settlement] available to the parties after Judge Whitaker retired. She agrees with Judge Dawson’s statement that taxpayers’ claim that the parties were not offered a new trial is “conspicuously incorrect and contrary to fact.” In addition, the Commissioner claims that the taxpayers waived their right to a new trial even before the status conference was held, by stating (in their pleading requesting a conference), that the cost of the earlier trial and subsequent financial 14 reverses had left taxpayer “in a position where he cannot financially afford to retry this case” and that he was four years older and not in the same health as he had been at the time of the trial. Further, the Commissioner claims that Judge Whitaker’s oral statements from the bench were not his findings of fact. She contends that oral findings would have been inappropriate as the relevant facts and law of the case were not clear at the close of evidence and briefs had not been filed. See Tax Ct. R. 152. She argues further that Judge Whitaker’s comments were not binding, even as to fraud, because they were substantially qualified (“this is not a decision on my part” . . . “this is just my reaction today”). The Commissioner claims that Judge Dawson was “well aware” of these comments which he described as a “tentative and qualified reaction by the trial judge made before a review of all the testimony and massive documentary evidence and before any briefs were filed.” Hence, Judge Whitaker’s comments, the Commissioner avers, were of a preliminary or tentative nature, not embodied in a ruling, and not binding. The Commissioner cites Milbrew, Inc. v. Commissioner, 710 F.2d 1302 (7th Cir. 1983) in support of her position. In Milbrew, the taxpayer’s case was decided by a successor judge after reassignment by the Tax Court. In its affirming opinion, the Seventh Circuit rejected the taxpayer’s attack upon the reassignment by stating: 15 The Tax Court judge before whom the case was tried retired after the trial but before rendering his opinion. The taxpayers agreed that the case could be reassigned to another judge for decision on the record compiled before the first judge, and this was done. Having been willing to take their chances before the second judge they cannot complain because he decided the case against them. The first judge had made comments during the course of the trial that were very favorable to the taxpayers. The taxpayers were confident that his successor would be influenced by those comments and would decide for them. They were disappointed. Of course if he had decided for them they would be defending vigorously the procedure that was adopted. By consenting to the procedure they waived any objection. (Emphasis added.) Milbrew, 710 F.2d at 1308; see also W.R.B. Corp. v. Geer, 313 F.2d 750 (5th Cir. 1963). The Milbrew taxpayers consented to the reassignment procedure. The Seventh Circuit concluded that they had waived any objection to that procedure and affirmed the judgment of the Tax Court.