Opinion
12103-19
03-25-2024
NORTH BY NORTHWEST V, LLC, NOTTELY RIVER INVESTMENTS I, LLC, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Elizabeth Crewson Paris Judge
This case is one of six related cases.
The six cases are North by Northwest, VII, LLC v. Commissioner, Docket No. 12101-19; North by Northwest, VI, LLC v. Commissioner, Docket No. 12102-19; North by Northwest V, LLC v. Commissioner, Docket No. 12103-19; North by Northwest IV, LLC v. Commissioner, Docket No. 12104-19; North by Northwest III, LLC v. Commissioner, Docket No. 12105-19, and North by Northwest II, LLC v. Commissioner, Docket No. 12106-19.
On July 17, 2023, docket entry 122, respondent filed a First Amendment to Answer. On September 5, 2023, docket entry 124, petitioner filed a Reply to First Amendment to Answer.
Before the Court in this case is respondent's Motion to Strike, filed October 5, 2023, docket entry 125. Respondent moves the Court, pursuant to Rule 52, Tax Court Rules of Practice and Procedure, to strike from petitioner's Reply to Amendment to Answer certain subparagraphs as false, redundant, immaterial, impertinent, frivolous, or scandalous. On November 17, 2023, docket entry 129, petitioner filed an Objection to Respondent's Motion to Strike.
Respondent filed similar but not identical motions in the other five related cases.
By Order dated October 17, 2023, docket entry 128, the Court directed that both petitioner's Reply to First Amendment to Answer, docket entry 124, and respondent's Motion to Strike, docket entry 125, be placed under temporary seal. By Order dated November 30, 2023, docket entry 131, the Court directed that petitioner's Objection to Motion to Strike, docket entry 129, be placed under temporary seal.
Rule 52 provides in relevant part that "the Court may order stricken from any pleading . . . any redundant, immaterial, impertinent, frivolous, or scandalous matter." The Court will not order a matter stricken from a pleading "unless it is clear that it can have no possible bearing upon the subject matter of the litigation." Estate of Jephson v. Commissioner, 81 T.C. 999, 1001 (1983).
The subparagraphs that respondent characterizes as "redundant, immaterial, impertinent, frivolous, or scandalous" are not "redundant," and would not be "impertinent" or "immaterial" if proven at trial. Therefore, it is unclear whether the subparagraphs "can have no possible bearing on the subject matter" of this case. Further, these subparagraphs are no more "scandalous" than other statements the parties have made in this case.
Accordingly, the Court will deny respondent's Motion.
After due consideration, it is
ORDERED that respondent's Motion to Strike filed October 5, 2023, docket entry 125, is denied. It is further
ORDERED that the filings at docket entries 124, 125, and 129, are unsealed and made viewable.