Royalty Mgmt. Ins. Co. v. Comm'r of Internal Revenue

Full title: ROYALTY MANAGEMENT INSURANCE COMPANY, LTD., ET AL., Petitioners v…

Court: United States Tax Court

Date published: Feb 17, 2023

No. 3823-19 (U.S.T.C. Feb. 17, 2023)

Opinion

3823-19 4421-19

02-17-2023

ROYALTY MANAGEMENT INSURANCE COMPANY, LTD., ET AL., Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent

Albert G. Lauber Judge.

ORDER

Albert G. Lauber Judge.

Trial of these "micro-captive" insurance cases involving petitioners' 2012 tax year commenced on February 14, 2023, in Oklahoma City, Oklahoma. On December 15, 2022, petitioners filed the opening expert report of Brett Sanger, a Certified Public Accountant and lawyer specializing in oil and gas. On January 13, 2023, petitioners filed a rebuttal report authored by Mr. Sanger directed to the affirmative opening report of Dr. Mark Crawshaw, which respondent had timely filed on December 15, 2022.

On January 24, 2023, respondent filed Motions in Limine to exclude from evidence the opening report and expert testimony of Mr. Sanger and a portion of his rebuttal report. Each Motion alleged that the reports contain "impermissible legal conclusions," that they constitute improper advocacy for petitioners' position, and that they opine on insurance matters outside the scope of Mr. Sanger's expertise. By Order served January 26, 2023, we directed petitioners to file a single Response to the Motions, noting that the Court would hear argument on the Motions at the outset of trial. On February 9, 2023, petitioners timely filed a Response to the Motions.

On February 14, 2023, we heard argument on the Motions. After hearing argument, we ruled that portions of Mr. Sanger's opening and rebuttal reports would be stricken when those reports were offered into evidence. Upon due consideration and for cause more fully appearing in the transcript of the proceeding, it is

ORDERED that respondent's Motion in Limine to exclude from evidence the opening report and expert testimony of Brett Sanger, filed January 13, 2023, is granted in part and denied in part, to the extent set forth in the transcript of the proceeding. It is further

ORDERED that respondent's Motion in Limine to exclude from evidence a portion of the rebuttal report and expert testimony of Brett Sanger, filed January 13, 2023, is granted to the extent set forth in the transcript of the proceeding.