In Uncategorized on 03/22/2021 at 10:35

Judge Christian N. (“Speedy”) Weiler is quick to unstay Longwood Preserve Holdings, LLC, Longwood Preserve Investors, LLC, Tax Matters Partner, Docket No. 12421-19, filed 3/22/21, only nine (count ’em, nine) days after both the Longwoods and IRS asked Judge Speedy to lift the stay he put on last month.

Lift partially, that is.

The Longwoods and IRS were part of the sequence holding short of trial, waiting on Dave Hewitt and his platoon of conservationists. Dave and Co. are appealing IRS’ “very contestable readings” of conservation easement deeds, and the regulations whereunder such readings are permitted. I’ve blogged this throwdown extensively.

Now 11 Cir has the Hewitt case, and Tax Court Judges agree that “the Hewitt case will likely rule on the issues central to the parties’ cross motions for summary judgment in this case, including the validity and proper interpretation of Treas. Reg. sec. 1.170A-14(g)(6)(ii).” Order, at p. 1.

And every other shortchanged 501(c)(3) extinguishment case. So why unstay the Longwoods?

Both the Longwoods’ and IRS’ experts want to inspect the servient tenement (that’s the property encumbered by the easement, not a crashpad for extras from Fifty Shades of Grey). So Judge Speedy will let them trek out to Glynn County, GA, and scope out the same.

“…as stated in the joint motion to partially lift the stay of proceedings, the parties will need to address the value of the property and disputed conservation easement regardless of the outcome of the Hewitt case and subsequent disposition of the parties’ cross motions for summary judgment. As such, a partial lift of the stay of proceedings for the limited purpose of a site visit would simplify the issues in question and reduce the burden of litigation on the parties and on the court.” Order, at p. 1.

Can’t read too much into this, but just possibly might could be IRS is less than sanguine about what 11 Cir will do.


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