Dan Carman, et al. v. Scott Besent, et al.

Summary

The United States District Court for the Eastern District of Kentucky overruled Defendants’ objection to a magistrate judge’s order compelling discovery concerning the government’s handling of reports required under 26 U.S.C. § 6050I. The court held that the Sixth Circuit’s prior decision did not foreclose discovery regarding the government’s use or sharing of reported information, that judicial estoppel did not apply, and that the discovery was potentially relevant to Plaintiffs’ surviving facial First and Fourth Amendment claims. The court lifted the stay and ordered Defendants to supplement their discovery responses.

Holdings

1. The Sixth Circuit's decision addressed standing and ripeness but did not decide the proper scope of discovery; therefore, the law-of-the-case doctrine and mandate rule did not bar discovery concerning the government's use and sharing of § 6050I information.
2. Judicial estoppel did not bar Plaintiffs from seeking discovery concerning the government's use and dissemination of § 6050I information.
3. The magistrate judge did not abuse his discretion in finding most of Plaintiffs' discovery requests relevant and proportional to the needs of the case.

Questions Presented

1. Whether the magistrate judge's discovery order exceeded the scope of the Sixth Circuit's mandate or was barred by the law-of-the-case doctrine.
2. Whether judicial estoppel barred Plaintiffs from seeking discovery concerning the government's use and sharing of § 6050I information.
3. Whether the challenged discovery requests were relevant and proportional to Plaintiffs' surviving facial First and Fourth Amendment claims.

Disposition

other