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United States v. Estate of Stonehill

Citations: 660 F.3d 415; 108 A.F.T.R.2d (RIA) 6436; 2011 U.S. App. LEXIS 19709; 2011 WL 4470644Docket: 10-35789

Court: Court of Appeals for the Ninth Circuit; September 28, 2011; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves an appeal by two individuals contesting the denial of their Rule 60(b) motion to vacate a 1967 tax judgment, arguing that new evidence obtained through FOIA indicated government fraud during a suppression hearing. The appellants contended that their associate, William Saunders, acted as their attorney when providing information to the government, invoking the precedent of United States v. Throckmorton. However, the court found insufficient evidence of Saunders acting in an attorney capacity. The court also determined that the government's actions did not constitute fraud on the court, as they did not fundamentally compromise the judicial process. Furthermore, the court noted that U.S. agents did not instigate the raid in question, thus upholding the district court's decision to deny the motion to suppress evidence. Ultimately, the court affirmed the district court's ruling, rejecting the appellants' claims and maintaining the 1967 judgment.

Legal Issues Addressed

Fraud on the Court

Application: The appellants argued that the government committed fraud during a suppression hearing and appeal, but the court held that the evidence did not demonstrate a fundamental compromise of the judicial process.

Reasoning: The court concluded that McCarthy’s failure to disclose the full Picture Book and his misleading statements did not significantly impact the district court's decision, as the additional information would not have meaningfully altered the case's outcome.

Rule 60(b) Motion to Vacate Judgment

Application: The appellants sought to vacate a 1967 tax judgment, claiming government fraud during a suppression hearing. The court found the misconduct insufficient to prove fraud on the court.

Reasoning: Although the evidence indicates some misconduct by the government, it does not meet the threshold for proving fraud on the court.

Suppression of Evidence

Application: The court ruled against the suppression of evidence obtained from a raid, finding that U.S. agents did not instigate the raid and that the evidence was not obtained in violation of Fourth Amendment rights.

Reasoning: The majority opinion reiterated the district court's findings but highlighted additional details, such as Chandler assisting an NBI agent in sorting files post-raid and pointing out a record storage area when requested.

United States v. Throckmorton Precedent

Application: The appellants claimed their associate, William Saunders, acted as an attorney when he provided information to the government, invoking Throckmorton. This claim was rejected due to insufficient evidence of an attorney-client relationship.

Reasoning: This claim is rejected because the appellants did not establish that Saunders was acting in an attorney capacity at that time.