Opinion ID: 489931
Heading Depth: 1
Heading Rank: 4

Heading: Stipulation From First Trial

Text: 19 Bail Bonds contends that, in the second trial, the tax court erred in enforcing the stipulation regarding the Harris testimony entered into during the first trial. Stipulations to the tax court are governed by Rule 91 of the Tax Court Rules of Practice and Procedure. Rule 91(e) states that: The [Tax] Court will not permit a party to a stipulation to qualify, change, or contradict a stipulation in whole or in part, except that it may do so where justice requires. 20 Bail Bonds argues that, as a matter of law, a stipulation entered prior to the first trial of a case does not apply to the de novo retrial of that case. Bail Bonds cites no authority for this proposition. On the contrary, a number of cases have held that, on retrial of a case, stipulations entered pursuant to the first trial of that case may remain in effect. See United States v. Boothman, 654 F.2d 700, 703 (10th Cir.1981); United States v. Marino, 617 F.2d 76, 82 (5th Cir.), cert. denied, 449 U.S. 1015, 101 S.Ct. 575, 66 L.Ed.2d 474 (1980); Mittlieder v. Chicago & Northwestern Railway Co., 441 F.2d 52, 55 (8th Cir.1971); but cf. Meehan v. Central Railroad Co. of New Jersey, 181 F.Supp. 594, 628 n. 19 (S.D.N.Y.1960) (on retrial, stipulation would not necessarily survive the original trial). We conclude that the tax court in the instant case correctly treated the Harris stipulation in the same manner as a stipulation used during the single trial of a case. 21 The tax court's decision to enforce a stipulation is reviewed for abuse of discretion. See Boothman, 654 F.2d at 703. A stipulation will generally be enforced unless manifest injustice would result. See Rule 91(e), Tax Court Rules of Practice and Procedure (tax court may permit a party to change stipulation where justice requires); see also Vallejos v. C.E. Glass Co., 583 F.2d 507, 511 (10th Cir.1978) (manifest injustice rule); Jeffries v. United States, 477 F.2d 52, 55 (9th Cir.1973) (same). Bail Bonds has not shown that manifest injustice resulted from the tax court's decision to enforce the stipulation; that decision was well within the court's discretion. The tax court correctly found unpersuasive Bail Bonds' claim that enforcement of the stipulation would unfairly deny it the right to confront and cross-examine Harris. The same situation existed when Bail Bonds first entered into the stipulation, and nothing subsequently occurred to change the effect of the original stipulation. 22