Fred L. Wagner’s counsel was running out of patience, and so was Judge Cohen. Fred’s main case had been pending for four years, and five (count ‘em, five) trial dates had been set, when a stipulation for settlement was executed both by Fred’s counsel and IRS’s counsel. There’s a related case with unresolved issues consolidated with Fred’s main case, but Fred’s counsel and IRS’s counsel were working on those.

Lo and behold, as a lamented colleague was wont to say, on the last day to move to vacate the decision entered pursuant to the stipulated settlement, IRS’s counsel so moves because “Respondent’s counsel is concerned that if the decision in this case is not vacated, the Court may be forced to try and interpret the basis for the parties’ settlement for taxable year 2005 in this case in order to render an opinion for taxable years 2006 and 2007 in….” the related case. Order, at p. 2.

IRS’s counsel claims that, because she and Fred’s counsel disagree on the impact of the settlement in the main case on the related case, there was no “meeting of the minds” on the stipulation of settlement.

Didn’t we just discuss this, you may ask.

Roger that, I respond.

See my blogpost “Check the File”, 11/5/14.

Judge Cohen doesn’t even have to read Judge Morrison’s words of wisdom, much less mine, as she tosses IRS’s counsel and her motion under the proverbial.

“Respondent does not cite any direct authority for the relief sought but relies on the catchall phrase ‘any other reason justifying relief from the operation of the judgment’ in Rule 60(b) of the Federal Rules of Civil Procedure. Respondent does not address those authorities that suggest that this is not a situation where relief is justified.” Order, at p. 2.

But Judge Cohen does address them, and the result doesn’t help IRS’s counsel.

“This Court has repeatedly declined to vacate a stipulation for settlement and is even less likely to set aside a stipulated judgment incorporating the agreed upon terms. Relevant cases were summarized in Dorchester Industries Inc. v. Commissioner, 108 T.C. 320, 335 (1997), aff’d 208 F3.d 205 (3d Cir. 2000) and in Stamm International Corp. v. Commissioner, 90 T.C. 315, 321-322 (1988).” Order, at p. 2.

Unhappily, IRS’s counsel ignores those cases.

Fred’s main case has been pending for four years, the related case for two years, and “The parties and the Court expended substantial efforts in narrowing issues before trial, and counsel were well aware of the relationship between the two docketed cases. If there is doubt about the effect of the decision in this case on the issues in the related case, that question may be resolved in the later case.” Order, at p. 2.

In any case, this case is going to trial in the Spring. With the stipulated decision in place.

Oh yes, the designated hitter is Fred L. Wagner, Docket No. 24556-09, filed 11/7/14.