Opinion
2607-23 2608-23
08-19-2024
EATON CORPORATION & SUBSIDIARIES, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Albert G. Lauber, Judge.
By Order served on February 27, 2024, these cases were consolidated for trial, briefing, and opinion. On August 14, 2024, the parties jointly filed a Motion to Set Pretrial Scheduling Order, requesting the Court schedule three special trial sessions and adopt the parties' proposed pre-trial schedule.
Upon due consideration, it is ORDERED that the parties' Motion to Set Pretrial Scheduling Order is granted. It is further
ORDERED that this case is set for three separate special trial sessions in Washington, D.C., as follows:
1. The first trial session will begin at 10:00 a.m. on Monday, November 3, 2025. During the first trial session, the Court will receive evidence related to the matters petitioner alleges in paragraphs 4.d. and 5.d (the "Intercompany Guarantee Fees Issue"), and 4.e. and 5.d (the "Intercompany Interest Expense Issue"), of the Petition in Docket number 2608-23. The first trial session is expected to last approximately three weeks.
2. The second trial session will begin at 10:00 a.m. on Monday, July 13, 2026. During the second trial session, the Court will receive evidence related to the matters petitioner alleges in paragraphs 4.a. and 5.a. (the "Islands Manufacturing Transactions Issue") of the Petition each of Docket numbers 2607-23 and 2608-23. The second trial session is expected to last approximately two to four weeks.
3. The third trial session will begin at 10:00 a.m. on Monday, February 1,
2027. During the third trial session, the Court will receive evidence related to the matters petitioner alleges in paragraphs 4.c. and 5.c. (the "SLP Truck Products Royalty Issue") of the Petition in each of Docket numbers 2607-23 and 2608-23, and any other matters in controversy not covered by the first two trial sessions. The third trial session is expected to last approximately four weeks. It is further
ORDERED that on or before Monday, September 30, 2024, the parties shall jointly propose a pre-trial schedule reflecting the scheduling deadlines agreed to by the parties for the second and third trial sessions. It is further
ORDERED that the parties shall adhere to the following pre-trial schedule for the first trial session commencing Monday, November 3, 2025 (all deadlines apply solely with respect to the subject matter of the first trial session):
1. Thursday, September 26, 2024 (403 days before trial): Submit to the Court a First Stipulation of Facts and attached exhibits.
2. Friday, December 6, 2024 (332 days before trial): Submit to the Court a first status report, jointly or separately, reflecting case developments, the status of stipulations, discovery, and outstanding and anticipated motions filed with this Court.
3. Friday, February 21, 2025 (255 days before trial): Last date for serving interrogatories, requests for production, and requests for admissions pursuant to Tax Court Rules 71, 72, and 90, respectively.
4. Friday, March 7, 2025 (241 days before trial): Last date to identify opening expert witnesses by exchanging: (1) the expert's name and business address, (ii) the expert's curriculum vitae; (iii) a list of all publications authored by the expert within the preceding ten years; (iv) a list of any other cases in which the witness has testified as an expert at trial or by deposition within the preceding four years; and (v) anticipated topics of the expert's testimony.
5. Friday, April 18, 2025 (199 days before trial): Last date to file any motion for summary judgment, partial summary judgment, or other dispositive motion.
6. Friday, April 25, 2025 (192 days before trial): Last date to file motions to compel responses to interrogatories and requests for production under Tax Court Rule 104(b).
7. Friday, May 2, 2025 (185 days before trial): Exchange and submit to the Court opening expert reports consistent with Tax Court Rule 143(g).
8. Friday, May 9, 2025 (178 days before trial): Exchange expert workpapers relating to opening expert reports, pursuant to Tax Court Rule 143(g)(1). 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 ("Opinions"), including assumptions that the party's attorney provided and that the expert relied on in forming 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, (iv) notes of interviews considered by experts, and (v) worksheets, schedules, and other documents reflecting computations considered by the expert in forming the Opinions.
9. Friday, May 30, 2025 (157 days before trial): Last date to identify rebuttal expert witnesses by exchanging the information listed in paragraph 4. Experts identified in paragraph 4 may be called as rebuttal expert witnesses without the need for identification pursuant to this provision.
10. Wednesday, July 2, 2025 (124 days before trial): Exchange and submit to the Court rebuttal expert reports consistent with Tax Court Rule 143(g).
11. Friday, July 11, 2025 (115 days before trial): Exchange expert workpapers relating to rebuttal expert reports, pursuant to Tax Court Rule 143(g)(1). Expert workpapers shall include the same information provided by the parties for opening reports in paragraph 8.
12. Friday, July 18, 2025 (108 days before trial): Submit to the Court a second joint status report reflecting case developments, the status of stipulations, discovery, and outstanding and anticipated motions filed with this Court.
13. Monday, July 21, 2025 (105 days before trial): Begin Tax Court Rule 74 expert deposition period. The parties agree that each side may take the deposition of the opposing side's expert witnesses. Each side may take a deposition, not to exceed five hours, of two of the opposing side's expert witnesses, and a deposition, not to exceed three hours, of each of the opposing side's remaining expert witnesses. Each party shall pay the fees and costs incurred by its own expert witness in connection with the deposition of such expert witness.
14. Friday, July 25, 2025 (101 days before trial): Last date to file motions to review the sufficiency of the answers or objections to a request for admissions under Tax Court Rule 90(e).
15. Friday, August 29, 2025 (66 days before trial): End of Tax Court Rule 74 expert deposition period.
16. Friday, September 5, 2025 (59 days before trial): Last date to file Tax Court Rule 91(f) motions to compel stipulation.
17. Friday, September 19, 2025 (45 days before trial): Exchange pre-trial memoranda and submit them to the Court. The pre-trial memoranda must set forth (i) the issues to be tried, (ii) a summary of the pertinent facts and
applicable law, (iii) a description of any major evidentiary issues expected to arise at trial, and (iv) a description of any other significant problems on which a ruling will be required. The pre-trial memoranda shall also list all witnesses who will or may testify at trial, including all experts, and provide brief summaries of the anticipated testimony of those witnesses. Witnesses who are not identified will not be permitted to testify at trial without leave of Court upon sufficient showing of good cause. Parties are not required to identify witnesses or documents where the testimony or evidence will be used solely for impeachment. Witnesses identified by either party may be called by the other party.
18. Wednesday, September 24, 2025 (40 days before trial): Last date to file responses to Tax Court Rule 91(f) motions to compel stipulation.
19. Friday, September 26, 2025 (38 days before trial): Exchange documents not previously stipulated or exchanged that either party plans to introduce into evidence. This excludes trial demonstratives and documents to be used solely for impeachment.
20. Friday, October 3, 2025 (31 days before trial): Last date to file any motions in limine with respect to expert reports or any other evidentiary issue in the case unless a later filing date allowed by the Court for good cause shown.
21. Wednesday, October 15, 2025 (19 days before trial): Last date to file responses to any motions in limine filed on or before September 5, 2025.
22. Monday, November 3, 2025: Trial commences.
It is further
ORDERED that, except as otherwise provided above, the Court's Rules of Practice and Procedure shall govern the parties' pre-trial practice for the first trial session commencing Monday, November 3, 2025.