Waltner v. United States

CourtDistrict Court, D. Arizona
DecidedFebruary 10, 2020
Docket2:19-cv-04679
StatusUnknown

This text of Waltner v. United States (Waltner v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waltner v. United States, (D. Ariz. 2020).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA 8 9 Steven T. Waltner; and Sarah Van Hoey, No. CV-19-04679-PHX-DGC 10 Plaintiffs, ORDER 11 vs. 12 United States, 13 Defendant. 14 15 16 Pro se Plaintiffs Steven Waltner and Sara Van Hoey, who formerly were married, 17 have sued the United States seeking tax refunds from the 2013 through 2017 tax years. 18 Plaintiffs assert nine claims in their complaint. Doc. 1. The government moves to 19 dismiss most of the claims for lack of subject matter jurisdiction and moves for summary 20 judgment on several claims. Doc. 19. The government also requests that the case be 21 stayed pending a ruling on its motion. Doc. 20. Plaintiff Sarah Van Hoey has filed a 22 Rule 56(d) declaration requesting an opportunity to conduct discovery before responding 23 to the motion. Doc. 32. The government opposes the request. Doc. 38. For reasons 24 stated below, the Court will deny Van Hoey’s Rule 56(d) request and grant in part the 25 government’s motion to stay. 26 I. Background. 27 Plaintiffs assert the following claims in their complaint: refund claims regarding 28 their 2013, 2014 and 2015 joint tax returns (Counts 1-3); refund claims regarding Van 1 Hoey’s 2016 return (Count 4) and Plaintiffs’ 2017 returns (Counts 5-6); a damages claim 2 under 26 U.S.C. § 7433 (Count 7); and injunctive and mandamus relief claims 3 (Counts 8-9). Doc. 1 ¶¶ 29-135; see Doc. 22 at 2.1 The government moves to dismiss 4 Count 1 and Counts 3 through 9 for lack of subject matter jurisdiction. Doc. 19-1 at 2. 5 The government alternatively moves for summary judgment on Counts 1 through 6 based 6 on collateral estoppel. Id. 7 Van Hoey seeks to conduct discovery before fully responding to the government’s 8 motion, and has filed a declaration pursuant to Rule 56(d). Doc. 32. The government 9 argues that Van Hoey’s request for discovery should be denied because she does not 10 identify the specific facts she believes discovery would reveal, nor does she explain how 11 any such facts are essential to responding to the government’s motion. Doc. 38 at 4. 12 II. Rule 56(d) Standard. 13 “Rule 56(d) offers relief to a litigant who, faced with a summary judgment motion, 14 shows the court by affidavit or declaration that ‘it cannot present facts essential to justify 15 its opposition.’” Michelman v. Lincoln Nat’l Life Ins., 685 F.3d 887, 899 (9th Cir. 2012) 16 (quoting Fed. R. Civ. P. 56(d)). A district court has discretion to grant relief under 17 Rule 56(d) and may “(1) defer considering the [summary judgment] motion or deny it; 18 (2) allow time to obtain affidavits or declarations or to take discovery; or (3) issue any 19 other appropriate order.” Fed. R. Civ. P. 56(d); see Michelman, 685 F.3d at 892, 899; 20 Singh v. Am. Honda Fin. Corp., 925 F.3d 1053, 1076 (9th Cir. 2019). The party seeking 21 Rule 56(d) relief “bears the burden of showing that ‘(1) [she] has set forth in [declaration] 22 form the specific facts [she] hopes to elicit from further discovery; (2) the facts sought 23 exist; and (3) the sought-after facts are essential to oppose summary judgment.” Martin 24 v. James River Ins., 366 F. Supp. 3d 1186, 1189 (D. Nev. 2019) (quoting Family Home & 25 Fin. Ctr., Inc. v. Fed. Home Loan Mortg. Corp., 525 F.3d 822, 827 (9th Cir. 2008)); see 26 27 1 Plaintiffs asserted similar claims in an earlier action, which the Court dismissed without prejudice. See Waltner v. United States, No. CV-18-1163-PHX-DGC (Jan. 11, 28 2019) (Doc. 41). 1 Nidds v. Schindler Elevator Corp., 113 F.3d 912, 921 (9th Cir. 1996) (“The burden is on 2 the party seeking additional discovery to proffer sufficient facts to show that the evidence 3 sought exists, and that it would prevent summary judgment.”); Garrett v. City & Cty. of 4 S.F., 818 F.2d 1515, 1518 (9th Cir. 1987) (the party seeking to conduct discovery “must 5 make clear what information is sought and how it would preclude summary judgment”). 6 “Failure to comply with these requirements is a proper ground for denying discovery and 7 proceeding to summary judgment.” Family Home, 525 F.3d at 827 (citations omitted). 8 III. Van Hoey’s Rule 56(d) Declaration. 9 Van Hoey has prepared a thorough draft response to the government’s motion, but 10 claims there are several areas where she lacks information needed to complete the 11 response. Doc. 32 ¶ 13. The Court will address each area she identifies. 12 A. Count 4 – Van Hoey’s 2016 Refund Claim. 13 In Count 4, Van Hoey alleges that she is entitled to a refund of amounts applied 14 from the 2016 tax year to a penalty that was assessed for the 2007 tax year. Doc. 1 15 ¶¶ 75-82. The government provides Internal Revenue Service (“IRS”) records indicating 16 that the 2016 overpayments of $3,107.93 and $92.63 were applied to frivolous return 17 penalties assessed for 2007. See Doc. 19-1 at 11. The government argues that the Court 18 lacks subject matter jurisdiction to refund the overpayments alleged in Count 4 because 19 Van Hoey still owes a balance of $11,299.44 on the penalties assessed for 2007. Id. 20 (citing Diamond v. United States, 603 F. App’x 947, 949 (Fed. Cir. 2015)). The 21 government alternatively argues that it is entitled to summary judgment on Count 4 22 because the Tax Court fully adjudicated the 2007 penalty assessments. Id. at 5-7, 11. 23 Van Hoey claims that the government does not identify the three penalties to 24 which the 2016 overpayments were applied. Doc. 32 ¶ 5. But the government makes 25 clear that the overpayments were applied to the “three $5,000.00 Section 6702 penalties 26 assessed for 2007.” Doc. 19-1 at 11. The government’s supporting declaration explains 27 that “on January 8, 2018, the IRS reassessed the three Section 6702 penalties against Ms. 28 Van Hoey in the aggregate amount of $15,000.00[,]” that each of the “three referenced 1 reassessed Section 6702 penalties was in the amount of $5,000.00[,]” and that the 2 “overpayments of $3,107.93 and $92.63 were applied from Ms. Van Hoey’s 2016 tax 3 year to the reassessed Section 6702 penalties and . . . there is still a balance owed of 4 $11,299.44” Doc. 19-6 ¶ 9 (citing Ex. D). 5 Van Hoey has not shown that discovery regarding the Section 6702 penalties 6 assessed for 2007 is essential to oppose the government’s motion on Count 4. See Sec. & 7 Exch. Comm’n v. Stein, 906 F.3d 823, 833 (9th Cir. 2018) (“The facts sought must be 8 ‘essential’ to the party’s opposition to summary judgment, and it must be ‘likely’ that 9 those facts will be discovered during further discovery[.]”) (citations omitted); Stevens v. 10 Corelogic, Inc., 899 F.3d 666, 678 (9th Cir. 2018) (“A party seeking to delay summary 11 judgment for further discovery must state what other specific evidence it hopes to 12 discover and the relevance of that evidence to its claims.”) (citation omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Maurice R. Huff, Nancy Huff v. United States
10 F.3d 1440 (Ninth Circuit, 1993)
Gail Michelman v. Lincoln National Life Insuranc
685 F.3d 887 (Ninth Circuit, 2012)
Naoko Ohno v. Yuko Yasuma
723 F.3d 984 (Ninth Circuit, 2013)
Diamond v. United States
603 F. App'x 947 (Federal Circuit, 2015)
Securities and Exchange Comm'n v. Mitchell Stein
906 F.3d 823 (Ninth Circuit, 2018)
Harvinder Singh v. American Honda Finance Corp.
925 F.3d 1053 (Ninth Circuit, 2019)
Margolis v. Ryan
140 F.3d 850 (Ninth Circuit, 1998)
Martin v. James River Ins. Co.
366 F. Supp. 3d 1186 (D. Nevada, 2019)
Garrett v. City & County of San Francisco
818 F.2d 1515 (Ninth Circuit, 1987)
Newport News Shipbuilding & Dry Dock Co. v. Parker
935 F.2d 20 (Fourth Circuit, 1991)
Hughes v. United States
953 F.2d 531 (Ninth Circuit, 1992)
Stevens v. Corelogic, Inc.
899 F.3d 666 (Ninth Circuit, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Waltner v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waltner-v-united-states-azd-2020.