No. 99-CV-482-H, No. 00-CV-492-H.
September 29, 2000
This matter comes before the Court pursuant to the Court's order filed September 12, 2000 notifying all parties that this consolidated action would be dismissed unless otherwise notified by parties of any outstanding issues by filing notice with this Court on or before September 25, 2000. Respondent Clendon Ledbetter filed such a notice with this Court on September 22, 2000.
The underlying basis of the two cases making up this consolidated action involves two administrative summonses issued by the Internal Revenue Service ("IRS") and served upon the Ledbetter Family Trust and the Ledco Trust. The first of the two actions, 99-CV-482-H, was filed by Harold J. Ledbetter, Trustee of the Ledbetter Family Trust on June 21, 1999 in an effort to quash the IRS summons. On March 24, 2000, this Court denied Petitioner Ledbetter's motion to quash the IRS summons and granted the United States' counter-motion for summary enforcement of the IRS summons.
The second of the two actions, 00-CV-492-H, was filed by the IRS on March 30, 2000 in an effort to enforce an administrative summons served upon the Ledco Trust. Respondents made no counter-claims against the United States in this action. The Court held hearings on May 26, 2000, June 8, 2000, June 9, 2000, June 13, 2000, and June 14, 2000 regarding Harold Ledbetter's status as trustee of the Ledco Trust and the location of Ledco Trust documents. On July 10, 2000, Harold Ledbetter filed motions to vacate orders and dismiss in 00-CV-492-H and 99-CV-482-H.
On July 14, 2000, the Court held a hearing in this matter. The Court ordered the consolidation of cases 00-CV-492-H and 99-CV-482-H. Furthermore, the Court ordered the substitution of Clendon Ledbetter for Harold Ledbetter as trustee of the Ledco Trust and the Ledbetter Family Trust. During the hearing, Clendon Ledbetter produced certain documents to the United States. The parties agreed that no inventory of the documents was required and the United States was under no obligation to return the documents to Clendon Ledbetter. Moreover, all parties stipulated in open court that Ledbetter's motions to vacate orders and dismiss filed in 00-CV-492-H and 99-CV-482-H were withdrawn and therefore moot.
On August 3, 2000, Ledbetter filed a motion in this consolidated action to vacate all orders and to return records. Ledbetter requested in his motion that the Court, pursuant to Fed.R.Civ.P. 60(b)(4), vacate all of its orders in this consolidated action and order the return from the United States of all books, records and other property of the Ledco Trust an the Ledbetter Family Trust. Ledbetter argued that: (1) the United States lacked standing to bring suit against a party absent proof of fraud against a corporation in which the United States owns stock; (2) the United States failed to provide a witness through which evidence could be made part of the record; (3) the Court deprived Ledbetter of an opportunity to confront and cross-examine witnesses, thereby depriving Ledbetter of his due process rights secured by the Fifth, Sixth, and Seventh Amendments, and Article III, Section 2 of the United States Constitution; and (4) the United States has failed to disclose taxing and liability statutes imposing liability on the instant trusts, thereby depriving Ledbetter of his Sixth Amendment rights. Ledbetter's arguments in the August 3, 2000 motion are identical to the arguments raised by Ledbetter in the July 10, 2000 motions filed in the separate actions.
On August 16, 2000, the United States filed a response to Ledbetter's motion to vacate stating, inter alia, that Ledbetter had fully complied with the subject summonses.
On August 31, 2000, Ledbetter filed a motion to vacate judgment and orders, re-urging substantially the same arguments raised in Ledbetter's August 3, 2000 motion to vacate.
The Court finds that Ledbetter's motions to vacate filed on August 3 and August 31, 2000 have no basis in fact or law. Ledbetter stipulated in open court on July 14, 2000 that the motions to vacate filed July 10, 2000 were withdrawn and therefore moot. Moreover, the United States has represented that it was satisfied that the production of documents by Ledbetter during the July 14, 2000 hearing, prior to the stipulations, was sufficient to comply with the IRS administrative summonses. Furthermore, Ledbetter falls to raise any new arguments in his August 3 and August 31, 2000 papers not mooted by the July 14, 2000 stipulation. Therefore, Ledbetter's August 3 and August 31, 2000 motions to vacate are hereby denied.
Based on a full review of the record, the Court finds that there are no issues remaining to be adjudicated in either 99-CV-482-H or 00-CV-492-H. Ledbetter's sole motion to quash in 99-CV-482-H was denied and summary enforcement of the administrative sununons was ordered. Furthermore, Ledbetter raised no counter-claims in his answer to the United States' motion to enforce the administrative summons in 00-CV-492-H. Copies of all the documents sought by the IRS in both of the administrative summonses have been turned over the United States, and the United States concedes that each of Clendon Ledbetter, the Ledco Trust and the Ledbetter Family Trust have fully complied with the administrative summonses. Moreover, Ledbetter's notice filed with the Court on September 22, 2000 does not identify any outstanding issues in either 99-CV-482-H or 00-CV-492-H that have not been addressed by the Court. Accordingly, there is nothing further to adjudicate in this matter and the case is hereby dismissed.
IT IS SO ORDERED.