JZ Buckingham Investments LLC v. United States

77 Fed. Cl. 37, 99 A.F.T.R.2d (RIA) 2512, 2007 U.S. Claims LEXIS 126, 2007 WL 1262759
CourtUnited States Court of Federal Claims
DecidedApril 27, 2007
DocketNo. 05-231 T
StatusPublished
Cited by5 cases

This text of 77 Fed. Cl. 37 (JZ Buckingham Investments LLC v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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JZ Buckingham Investments LLC v. United States, 77 Fed. Cl. 37, 99 A.F.T.R.2d (RIA) 2512, 2007 U.S. Claims LEXIS 126, 2007 WL 1262759 (uscfc 2007).

Opinion

OPINION AND ORDER

DAMICH, Chief Judge.

Before the Court, in this tax partnership case, is Plaintiffs Motion Challenging the Sufficiency of Defendant’s Responses to the First Set of Requests for Admission. In the motion, Plaintiff asks the Court to deem admitted its requests for admission regarding the genuineness of certain transactional documents. For the reasons set forth below, Plaintiffs motion is DENIED.

I. Background

JZ Buckingham Investments, LLC (“JZ”) and JGB Bohicket Investments, LLC (“JGB”), both Delaware limited liability companies, were partners in JBJZ Partners, a South Carolina general partnership, for the tax year ending December 27, 1999. Compl. It 1, 2, 4. JZ is the tax matters partner of JBJZ Partners. Id. 3. JBJZ Partners filed its federal tax return with the Internal Revenue Service (“IRS”) for the tax year ending December 27,1999. Id. 1f 6. On December 9, 2004, the Commissioner of the IRS issued a Notice of Final Partnership Administrative Adjustment (“FPAA”) against JBJZ Partners for that tax year. Id. II7.1 JZ filed this [39]*39case under 26 U.S.C. § 6226(a) to request redetermination of final partnership administrative adjustments as set forth by the Commissioner in the FPAA. Id. U11.

In its Complaint, JZ alleges as follows: JZ and JGB entered into non-publicly traded foreign currency option positions on the Euro and Yen with Deutsche AG New York Branch, each purchasing a long option and selling a short option. Id. U17-26. On November 24,1999, JZ and JGB contributed the options to JBJZ Partners, and on December 22, 1999, the option positions terminated in accordance with their terms. Id. 1127-28. During December 1999, JBJZ Partners purchased Canadian Dollars as an investment and, on December 22, 1999, forty-five hundred long-term shares and five hundred short-term shares of Cisco Systems, Inc. (“Cisco”) were contributed to JBJZ Partners. Id. H 29-81. On December 27,1999, JZ’s and JGB’s interests in JBJZ Partners were each contributed to JBJZ Investors, Inc. (“JBJZ Investors”), a Delaware corporation. Id. U 32-33. JBJZ Partners was dissolved and liquidated, and all the foreign currency and shares were distributed to JBJZ Investors. Id. H34. Finally, on December 28, 1999, JBJZ Investors sold all its investments in the foreign currency and shares. Id. 1135.

During fact discovery, Plaintiff served on Defendant its First Set of Requests for Admission. App. to Pl.’s Mot. (“Pl.’s App.”) at 1-59. Of relevance to Plaintiffs motion are Requests for Admission Nos. (“RFAs”) 4, 20, 39, 42, 44,2 51-52, 54-55, 57-58, 60-62, 65, 71, 79, 82, 88, 97,100,106,116-117,125, and 127.

RFA 4 states:

Attached is a true and correct copy of the Form SS-4, Application for Employer Identification Number, which was filed by JZ Buckingham on November 19, 1999. See document number Z001279.

Id. at 7 (emphasis in original).

The other requests for admission similarly request that Defendant admit the authenticity of certain documents as follows:3

RFA Document
20 Agreement of General Partnership of JBJZ Partners
39 Bylaws of JBJZ Investors
42 Stock certificate issued to Jerry Zucker for JBJZ Investoi'S common stock
44 Stock certificate issued to James Boyd for JBJZ Investors common stock
51 Account Agreement between JGB and BT Alex.Brown
52 Non-Corporate Resolution of JGB
54 Account Agreement between JZ and BT Alex.Brown
55 Non-Corporate Resolution of JZ
57 Account Agreement between JBJZ Partners and BT Alex.Brown
58 Partnership Account Authorization and Indemnity for JBJZ Partners
60 Account Agreement between JBJZ Investors and BT Alex.Brown
61 Corporate Account Authorization of JBJZ Investors
62 Foreign Exchange Digital Option Transaction Agreement between JGB and Deutsche Bank AG (JGB Euro Contract)
65 Assignment Agreement between JGB, Deutsche Bank AG, and JBJZ Partners (JGB Long Option)
71 Assignment Agreement between JGB, Deutsche Bank AG, and JBJZ Partners (JGB Short Option)
79 Foreign Exchange Digital Option Transaction Agreement between JZ and Deutsche Bank AG (JZ Euro Contract)
82 Assignment Agreement between JZ, Deutsche Bank AG, and JBJZ Partners (JZ Euro Long Option)
88 Assignment Agreement between JZ, Deutsche Bank AG, and JBJZ Partners (JZ Euro Short Option)
97 Foreign Exchange Digital Option Transaction Agreement between JZ and Deutsche Bank AG (JZ Yen Contract)
100 Assignment Agreement between JZ, Deutsche Bank AG, and JBJZ Partners (JZ Yen Long Option)
106 Assignment Agreement between JZ, Deutsche Bank AG, and JBJZ Partners (JZ Yen Short Option)
116 BT Alex.Brown Client Statement (for Acct. No. 222-10153-12)
117 BT Alex.Brown Client Statement (for Acct. No. 222-10154-11)
125 BT Alex.Brown Client Statement (for Acct. No. 222-10155-10)
[40]*40127 BT Alex.Brown Client Statement (for Aect. No. 222-10156-19)

Id. at 11,15-21, 23-25, 27-29, 32-34.

In response to the Requests for Admission No. 4, Defendant answered:

Denies and notes that the attached document does not appear to be signed or dated.

Id. at 64. In response to the other requests for admission, Defendant answered:

Defendant cannot admit or deny this request because it has not yet taken depositions of the persons who prepared and the persons who signed this document and thus cannot yet establish whether this document is authentic; and thus, despite having made reasonable inquiry, the information known or currently available to the Defendant is insufficient for the Defendant to admit or deny this request. See General Objection No. 2.4

Id. at 68, 74-76, 78-83, 85-86, 88-89, 92, 95-96, 99,102-103, and 106-07.5

On August 25, 2006, Plaintiff sent a letter to Defendant challenging Defendant’s objections to the requests for admission. Id. at 147-48. In response, Defendant reiterated and attempted to clarify its position in a letter dated September 11, 2006. Id. at 149-52. Specifically, Defendant explained:

Many of the documents to which you refer in your letter appear to be selected portions of a large faxed document. The United States is not required to admit to the authenticity of documents taken out of a complete document. See Caruso v. The Coleman Co.,

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77 Fed. Cl. 37, 99 A.F.T.R.2d (RIA) 2512, 2007 U.S. Claims LEXIS 126, 2007 WL 1262759, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jz-buckingham-investments-llc-v-united-states-uscfc-2007.