Opinion
7045-19 12364-20 12379-20
02-02-2023
PICAYUNE PEARL AGGREGATES, LLC, ET AL., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Courtney D. Jones Judge
Pending before the Court is the parties' Joint Motion for Proposed Trial Date, Special Trial Session, and Pre-Trial Scheduling Order, filed January 17, 2023 (Motion). For the reasons discussed below, we will grant in part and deny in part, their Motion.
Background
I. The Parties' Request for a Trial Date and Special Trial Session
On October 24, 2022, the parties filed a Joint Status Report. Therein, they requested that the Court set a trial date for Fall 2023 in a special trial session. They further asked the Court to give them 14 days from an order setting a trial date to file a proposed pretrial scheduling order. They also updated the Court on their ongoing discovery dispute.
II. Conference Call of December 1, 2022 On December 1, 2022, the Court held a recorded conference call with the parties.
A. The Court's Focus on Valuation
In response to the parties' request that the Court set a trial date, the Court indicated that in the interest of judicial economy, the Court would hold a partial trial on the issue of valuation, with further trial only if necessary. With respect to a pretrial scheduling order, the Court indicated its preference that the parties file a proposed pre-trial schedule that clearly contemplates a partial trial on the issue of valuation and makes clear that any and all deadlines relate only to that issue.
The parties inquired whether they would be precluded from filing motions for summary judgment on non-valuation issues. In response, the Court reiterated its focus on valuation.
B. Discovery Dispute
The Court indicated its strong preference that the parties resolve their ongoing discovery dispute prior to, or concurrently with, the filing of the proposed pre-trial schedule. The parties and the Court agreed that the parties would file the proposed schedule on or before January 17, 2023.
C. Status Report and Motion, filed January 17, 2023
On January 17, 2023, the parties filed a Joint Status Report and the Motion. The Motion asks the Court for a trial date of March 4, 2024 or an alternative date of December 11, 2023, in a special session of two weeks' duration. The narrative paragraphs of the Motion and the proposed pre-trial schedule do not appear to contemplate a partial trial or clarify that the proposed deadlines relate only to valuation.
In their Status Report, the parties informed the Court that they have been unable to resolve their discovery dispute with respect to 413 documents over which petitioner maintains its claim of attorney-client privilege. They represented that respondent intends to file a motion to compel production of these documents.
Discussion
The Court appreciates that the parties have requested a trial date in March 2024 (and offered an alternative in December 2023), and a special session of two weeks' duration. But in the interest of judicial economy, the Court is disinclined to grant such requests when their discovery dispute remains unresolved. Accordingly, we will deny them.
The parties may jointly move the Court to set a date for partial trial in a special session when the discovery dispute is resolved and the parties are otherwise ready for partial trial, pursuant to the pre-trial schedule the Court will order below. In the alternative, the Court may set a trial date and special session on its own motion. In either event, trial will begin no sooner than March 4, 2024, on not less than thirty days' notice.
With respect to the scope of such partial trial and the pre-trial schedule, the Court expressed to the parties, in clear terms, its "laser" focus on the valuation issue; intent to hold partial trial on that issue alone; and disinclination to expend judicial resources on motions for summary judgment on non-valuation issues. Nevertheless, the parties' proposed pre-trial schedule did not specify its application to valuation alone or specify a partial trial; and it provided deadlines for motions for summary judgment (and responses to such motions) without specifying that valuation would be the only subject of such motions.
Therefore, to the extent that the Court grants the parties' Motion with respect to their proposed schedule, we grant it to the limited extent that valuation shall be the sole subject of the actions required by the deadlines. Failure to adhere to this requirement (i.e., straying beyond the scope of valuation) will be grounds for sanctions.
Though the Court includes deadlines for the filing of motions for summary judgment (and responses thereto) below, the Court does not anticipate that either party will have good cause to file such motion, given the Court's focus on the issue of valuation.
If either party has good cause to ask for modification of the schedule set forth below, that party may move the Court to make that modification. Such motion shall explain, in detail, the cause for the requested modification.
In view of the foregoing, it is
ORDERED that the aforementioned Motion is denied in that the parties' request for a special trial session in Atlanta, Georgia (or alternatively, New Orleans, Louisiana or Nashville, Tennessee) to commence on March 4, 2024 (or, alternatively, December 11, 2023) is denied. It is further
ORDERED that the aforementioned Motion is denied in that the parties' request for a special trial session is denied. In anticipation of partial trial in 2024 (or 2025, in light of the discovery dispute), it is further
ORDERED that the aforementioned Motion is granted in that the parties are directed to adhere to the following pre-trial schedule:
1. October 6, 2023: Last date to file all motions for summary judgment and any and all other dispositive motions.
2. November 6, 2023: Last date to file all (non-movant) responses to motions for summary judgment and any and all other dispositive motions.
3. November 6, 2023: Last date to serve formal discovery, including interrogatories, requests for production of documents, and requests for admissions.
4. November 20, 2023: Last date to file all (movant) replies to motions for summary judgment and any and all other dispositive motions.
5. December 5, 2023: Last date to file any motions to compel discovery, to review the sufficiency of the answers or objections to requests for admissions, for sanctions regarding responses to discovery, and requests for admissions.
6. December 5, 2023: Last date to serve notices of deposition or filing any
motions for deposition with respect to any non-expert witnesses.
7. December 5, 2023: Last date to file first stipulation of facts.
8. January 4, 2024: Last date to file any (non-movant) oppositions to any motions to compel discovery, to review the sufficiency of the answers or objections to requests for admissions, for sanctions regarding responses to discovery, and requests for admissions.
9. January 4, 2024: Last date to file any motions to compel stipulation.
10.January 4, 2024: Last date to exchange and lodge opening expert witness reports with the Court. A case-in-chief expert witness for whom a report is not exchanged under this paragraph will not be permitted to testify without approval of the Court before trial.
11. January 4, 2024: Last date to exchange expert workpapers relating to opening expert reports, except those protected from discovery by Tax Court Rule 70(c)(3) and (4). Expert workpapers include (i) any facts, data, documents, or other information considered by the expert witness in forming the opinions to be offered by the expert (the "Opinions") (ii) any exhibits that will be used as a summary of or support for the Opinions, (iii) copies of any sources not generally publicly available, and (iv) worksheets, schedules, and other documents reflecting computations considered by the expert in forming the Opinions.
12. January 19, 2024: Last date to serve any notices of deposition under Rule 74(b)(2) or file any motions for deposition under Rule 74(c)(4)(B) with respect to any case-in-chief expert witnesses identified pursuant to the pretrial schedule.
13. February 5, 2024: Last date to exchange and lodge expert witness rebuttal reports with the Court. A rebuttal expert witness for whom a report is not exchanged under this paragraph will not be permitted to testify without approval of the Court before trial.
14. February 5, 2024: Last date to exchange expert workpapers relating to rebuttal expert reports, except those protected from discovery by Tax Court Rule 70(c)(3) and (4). Expert workpapers include (i) any facts, data, documents, or other information considered by the expert witness in forming the opinions to be offered by the expert (the "Opinions") (ii) any exhibits that will be used as a summary of or support for the Opinions, (iii) copies of any sources not generally publicly available, and (iv) worksheets, schedules, and other documents reflecting computations considered by the expert in forming the Opinions.
15. February 12, 2024: Last date to file pretrial memoranda with the Court. The pretrial memoranda shall set forth the issues to be tried, along with a
summary of relevant facts and applicable law with respect thereto, in sufficient detail to enable the Court to decide the case in its entirety by addressing each of the issues listed. The pretrial memoranda shall identify any evidentiary issues expected to arise at trial, as well as any other significant issue on which a ruling will be required by the Court. The pretrial memoranda also shall identify all witnesses expected to testify at trial, including expert witnesses, and shall include brief summaries of the anticipated testimony of those non-expert witnesses. Witnesses who are not so identified will not be permitted to testify at trial unless otherwise agreed to by the parties or allowed by the Court upon sufficient showing of good cause although the parties may reserve the right to call witnesses listed by the other party, or for the purpose of rebuttal or impeachment, or to testify to documents or evidence obtained after the date of the pretrial memoranda.
16. February 20, 2024: Last date to file any motions in limine or other pretrial motions regarding evidentiary issues.
17. February 20, 2024: Last date to identify in writing and exchange (if not previously exchanged) any documents and written material anticipated to be offered as evidence that have not been stipulated to by the parties (except documents and written materials intended to be used solely for impeachment purposes) on or before June 1, 2020. Any documents or written materials not so identified and exchanged will not be received into evidence unless otherwise agreed to by the parties or allowed by the Court upon sufficient showing of good cause.
18. February 26, 2024: Last date to exchange final exhibit lists (excluding trial demonstratives and documents to be used solely for impeachment).
19. March 1, 2024: Last date to exchange demonstrative exhibits.
Any events not addressed in this Order will be governed by the timeframes set forth in the Tax Court Rules of Practice and Procedure.