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YA Glob. Invs. v. Comm'r of Internal Revenue

United States Tax Court
Nov 23, 2022
No. 14546-15 (U.S.T.C. Nov. 23, 2022)

Opinion

14546-15 28751-15

11-23-2022

YA GLOBAL INVESTMENTS, LP F.K.A. CORNELL CAPITAL PARTNERS, LP, ET AL., Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent


ORDER

James S. Halpern Judge

Respondent has moved to reopen the record to receive into evidence three documents (motion). The motion is prompted by the Court's order, entered October 13, 2022, ordering the parties to submit supplemental briefs, including additional proposed findings of facts as appropriate, that address the implications of YA Global's filing a malpractice action in New Jersey state court against RSM McGladrey, Inc., and certain affiliates and employees (together, RSM). Respondent wants to reopen the record for the Court to receive (1) the complaint filed by YA Global on May 15, 2015, to initiate the malpractice action (complaint), (2) the answer filed by RSM (answer), and (3) a case summary of the action filed in Union County, New Jersey, at case number 1715-15, including entries for the period from February 13, 2018, to present (case summary; together, the three documents).

Petitioners object to our granting the motion but believe that the Court can take judicial notice of the complaint and its contents so long as notice is restricted to statements therein that are not hearsay or, if hearsay, are subject to a hearsay exception. Petitioners have no objection to the Court taking judicial notice of the case summary. Petitioners do not volunteer that the Court should take judicial notice of the answer because "it is hard to imagine how anything in the answer in the RSM Malpractice Case could be useful for any purpose other than hearsay."

The Court recognizes that, even if a document is judicially noticed, a court "cannot take judicial notice of a fact that would be inadmissible if it were offered as evidence." 21B Fed. Prac. & Proc. Evid. § 5106.4 (2d ed.). The Court will take judicial notice of the three documents subject to petitioners' right to make an objection to the Court considering any particulars of the documents. See Fed. R. Evid. 201(e). The Court believes that doing so may be sufficient to respondent's purposes in making the motion. It is, therefore, ORDERED that respondent's motion is denied. It is further

ORDERED that the Court will take judicial notice of the three documents. It is further

ORDERED that each party has until November 30, 2022, to make objections to the preceding ordered paragraphs.


Summaries of

YA Glob. Invs. v. Comm'r of Internal Revenue

United States Tax Court
Nov 23, 2022
No. 14546-15 (U.S.T.C. Nov. 23, 2022)
Case details for

YA Glob. Invs. v. Comm'r of Internal Revenue

Case Details

Full title:YA GLOBAL INVESTMENTS, LP F.K.A. CORNELL CAPITAL PARTNERS, LP, ET AL.…

Court:United States Tax Court

Date published: Nov 23, 2022

Citations

No. 14546-15 (U.S.T.C. Nov. 23, 2022)