UNITED STATES' MOTION TO CONTINUE FED. R. CIV. P. 26(f) CONFERENCE AND RELATED EVENTS

(Second request)

DANIEL J. ALBREGTS, Magistrate Judge.

The United States of America hereby moves to continue the Fed. R. Civ. P. 26(f) conference deadline. The case centers on the conduct of taxpayers Jeffrey and Dolores Martinez, in their personal capacities and in relation to two business entities they control. The Martinezes have been served. They have not yet appeared but they have initiated settlement negotiations. The United States thus requests that the Rule 26(f) conference deadline be extended from March 9, 2020, the current deadline, to the date 30 days after either of the Martinezes appear, or to May 8, 2020 (i.e., 60 days from March 9, 2020), whichever comes first.

MEMORANDUM OF POINTS AND AUTHORITIES

Background

This is a federal tax case. The United States seeks a judgment against taxpayers Jeffrey and Dolores Martinez, and against two businesses they controlled, for various federal tax liabilities. The United States also seeks to foreclose its tax liens against certain real property to help satisfy the judgment.

The United States also named as defendants other parties that might assert a lien or other claim against the property, pursuant to 26 U.S.C. § 7403(b) ("Action to enforce lien or to subject property to payment of tax"). That way, those parties' claims to the property (if any) could be adjudicated if and when the Court determines that the property should be foreclosed. It is common in such cases for the United States to reach stipulations with other claimants as to lien priority, to the extent they do not disclaim any interest.

The United States submits that it is premature to conduct the Rule 26(f) conference now. Neither of the Martinezes has appeared. The United States served them, individually and as representatives of their businesses, on December 27, 2019. Their time to respond to the complaint thus expired on January 17, 2019, under Fed. R. Civ. P. 12(a)(1)(A)(i). However, the Martinezes have reached out to the undersigned counsel, and the parties are contemplating a possible settlement that could resolve the matter. The United States reserves the right to seek an entry of default against the Martinezes and their businesses, but at present is open to settlement and interested in furthering the settlement negotiations.

To date only one of the potential lienholders, the Rhodes Ranch Association, has answered the complaint. (ECF No. 4).1 Another, Fidelity National Title, has disclaimed any interest. (See ECF No. 7). Defendants JP Morgan Chase Bank National Association and Chase Bank National Association (together, the "Chase defendants"), and the United States have reached a stipulation concerning lien priority as between them. (See ECF No. 20 (Order approving stipulation)). Defendant Republic Silver State Inc. has been served but has not yet appeared, and has not contacted the United States. Finally, the United States is filing a notice of dismissal concerning defendants Nevada Mortgagee Assistance Company and the Cooper Castle Law firm.

Request for Relief

Under the circumstances, the United States respectfully submits that it is premature to conduct a Rule 26(f) conference. The United States thus requests that the Rule 26(f) conference deadline be extended from March 9, 2020, the current deadline, to the date 30 days after either of the Martinezes appear, or to May 8, 2020 (i.e., 60 days from March 9, 2020), whichever comes first.

IT IS SO ORDERED.