Free Motion to Stay - District Court of Federal Claims - federal

Case 1:06-cv-00691-LMB

Document 15

Filed 01/04/2007

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS _________________ No. 06-691T (Judge Baskir) ILLINOIS CENTRAL RAILROAD COMPANY, Plaintiff, v. THE UNITED STATES, Defendant. _________________ JOINT MOTION TO STAY PROCEEDINGS _________________

Plaintiff and defendant hereby jointly move the Court to stay all proceedings in this case pending final outcome of the appeals in CSX Corp. v. United States, Fed. Cl. No. 95-858T, appeals docketed, Fed. Cir. Nos. 07-5003, 07-5007. The CSX case presents many of the same issues presented in the instant case with respect to the employment tax treatment of severance and separation payments. The CSX case appears likely to result in a Federal Circuit precedent on severance-pay issues. Accordingly, in the interest of judicial economy, the parties request that proceedings in the instant case be stayed pending the outcome of any appeal in the CSX

Case 1:06-cv-00691-LMB

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case. While the instant case also presents an issue that is not present in CSX (namely, the railroad retirement tax treatment of "Productivity Fund" distributions), the parties believe it would be more efficient and economical not to decide that issue separately, but to stay this entire case pending the outcome of the CSX appeal. A directly related case (Illinois Central Railroad Company v. United States, Fed. Cl. No. 06-527T) and an indirectly related case (Grand Trunk Western Railroad Incorporated v. United States, Fed. Cl. No. 00-544T), which both present the same legal issues as the instant case, have already been stayed by the Court to await the final outcome of the appeals in CSX. Accordingly, the parties respectfully move the Court to stay proceedings in the instant case pending final outcome of the appeals in CSX Corp. v. United States, Fed. Cl. No. 95-858T, appeals docketed, Fed. Cir. Nos. 07-5003, 07-5007. The parties will provide regular Joint Status Reports to keep the Court advised of developments in the CSX case and other matters relevant to the instant case. The parties suggest that such Joint Status Reports be placed on the same schedule as the Joint Status Reports currently being filed pursuant to the Court's orders in the Grand Trunk Western case and in the other Illinois Central case. A proposed order is attached.

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Case 1:06-cv-00691-LMB

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Respectfully submitted, Jan. 4, 2007 Date s/ Steven C. Lambert STEVEN C. LAMBERT Attorney of Record for Plaintiff Foley & Lardner LLP 3000 K Street, N.W., Suite 500 Washington, DC 20007 Tel: (202) 295-4067 Fax: (202) 672-5399 Of Counsel for Plaintiff: RICHARD F. RILEY, JR. Foley & Lardner LLP 3000 K Street, N.W., Suite 500 Washington, DC 20007

Jan. 4, 2007 Date

s/ Benjamin C. King, Jr. BENJAMIN C. KING, JR. Attorney of Record for Defendant Tax Division, Court of Federal Claims Section U.S. Department of Justice Post Office Box 26 Ben Franklin Station Washington, DC 20044 Tel: (202) 307-6506 Fax: (202) 514-9440 EILEEN J. O'CONNOR Assistant Attorney General DAVID GUSTAFSON Chief, Court of Federal Claims Section

Jan. 4, 2007 Date

s/ David Gustafson Of Counsel

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Case 1:06-cv-00691-LMB

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Filed 01/04/2007

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS _________________ No. 06-527 T (Judge Baskir) ILLINOIS CENTRAL RAILROAD COMPANY, Plaintiff, v. THE UNITED STATES, Defendant. ORDER The Court has received the parties' Joint Preliminary Status Report and the related Joint Motion to Stay Proceedings, both dated January ___, 2007. This Order hereby stays all proceedings in this case pending final outcome of the appeals in CSX Corp. v. United States, Fed. Cl. No. 95-858T, appeals docketed, Fed. Cir. Nos. 07-5003, 07-5007. The parties are directed to file a Joint Status Report every 45 days, to be filed on the same schedule, and covering the same matters, as the Joint Status Reports being filed in Illinois Central Railroad Company v. United States, Fed. Cl. No. 06-527T and Grand Trunk Western Railroad Inc. v. United States, Fed. Cl. No. 00-544T. IT IS SO ORDERED. _______________________ LAWRENCE M. BASKIR Judge