From Casetext: Smarter Legal Research

Rock Cliff Reserve, LLC v. Comm'r of Internal Revenue

United States Tax Court
Nov 21, 2022
No. 12472-20 (U.S.T.C. Nov. 21, 2022)

Opinion

12472-20 12482-20 12483-20 13758-20

11-21-2022

ROCK CLIFF RESERVE, LLC, FIVE RIVERS CONSERVATION GROUP, LLC, TAX MATTERS PARTNER, ET AL., Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent


ORDER

Joseph W. Nega, Judge.

These consolidated conservation easement cases were previously calendared for the session of the Court scheduled to commence on January 31, 2022, in Birmingham, Alabama. On November 17, 2022, respondent filed a Motion to Compel Discovery (respondent's motion). On November 18, 2022, petitioners filed a Response to Motion to Compel Discovery (petitioners' response) and a Declaration of Michelle Levin in Support of Response to Motion to Compel Discovery.

The parties have been engaged in informal discovery efforts, pursuant to Branerton Corp. v. Commissioner, 61 T.C. 691 (1974). As part of those efforts, respondent represents that he proposed a site visit to the four properties at issue in this case, to be conducted during the week of November 28, 2022. On November 8, 2022, the parties held a site visit coordination meeting, at which respondent stated that eight to nine people would be attending from respondent's side. Later that day, petitioners' counsel sent an email to respondent stating that a waiver of liability form must be signed by respondent in order to tour the properties.

On November 11, 2022, petitioners sent to respondent four waiver of liability forms corresponding to each of the properties. On November 16, 2022, counsel for both parties had a telephone conversation, in which respondent's counsel represented that none of the individuals visiting the properties on respondent's side were authorized to sign the waiver of liability forms. Later that day, petitioners' counsel called respondent's counsel again to confirm that petitioners required all individuals visiting the properties to sign the waiver of liability forms.

Respondent's counsel further represented that his General Legal Services division had advised that, based on applicable law, the waivers could not be signed.

In respondent's motion, respondent requests that "the Court grant respondent's counsel, contractors, and experts' access to the subject propert[ies]" in these cases. In petitioners' response, petitioners request that "the Court enter an order providing that all individuals Respondent intends to bring onto the Subject Properties are sufficiently apprised of the hazards associated with entering the Subject Properties, whether through executing a liability waiver or other notice, and that they take appropriate precautions." Petitioners further suggest several alternative precautions in lieu of the waiver of liability forms.

Petitioners further suggest that the Court characterize petitioners' response as a Motion for Protective Order pursuant to Tax Court Rule 103 to the extent necessary, "such that the Court can impose appropriate conditions on the site visit to address Petitioner's concerns about safety and liability."

We will direct the parties to confer this week in a good faith effort to reach an agreement that would allow the site visits to proceed. We will further direct the parties to then apprise the Court of their progress on Monday, November 28, 2022, via status report.

Upon due consideration, it is

ORDERED that at a reasonable time, but no later than November 23, 2022, the parties shall confer as to a potential agreement that would allow the site visits to proceed. It is further

ORDERED that, on or before November 28, 2022, the parties shall file a joint status report (or if that is not possible, then separate reports), stating the then current status of their discussions with respect to the site visits.


Summaries of

Rock Cliff Reserve, LLC v. Comm'r of Internal Revenue

United States Tax Court
Nov 21, 2022
No. 12472-20 (U.S.T.C. Nov. 21, 2022)
Case details for

Rock Cliff Reserve, LLC v. Comm'r of Internal Revenue

Case Details

Full title:ROCK CLIFF RESERVE, LLC, FIVE RIVERS CONSERVATION GROUP, LLC, TAX MATTERS…

Court:United States Tax Court

Date published: Nov 21, 2022

Citations

No. 12472-20 (U.S.T.C. Nov. 21, 2022)