432 F. App'x 618
7th Cir.2011Background
- Kanter appealed the Tax Court’s decision after remand, challenging the Tax Court’s handling of the Special Trial Judge (STJ) findings and the court’s adoption of the STJ's report.
- The Seventh Circuit previously reversed, directing the Tax Court to vacate its judgment and adopt the STJ’s report as the Tax Court’s decision, with mandate issued January 25, 2010.
- On remand, the Tax Court vacated its earlier decision, stated the STJ’s report shall be treated as the Court’s opinion, and then issued a deficiency decision consistent with the STJ’s findings.
- Kanter moved to publish the STJ’s report as adopted by the Tax Court; the Tax Court granted publication on January 20, 2011, attaching the STJ’s report to a June 16, 2005 order.
- Kanter filed a limited appeal to challenge (a) the Tax Court’s supposed failure to adopt the STJ’s opinion formally and (b) the publication of the STJ’s opinion under the Tax Court’s website, seeking to facilitate indexing by services like LEXIS and Westlaw.
- The Seventh Circuit determined it lacked appellate jurisdiction over the asserted issues, and dismissed the appeal as wholly insubstantial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction to review limited appeal | Kanter argues appellate review is available to challenge non-adoption and non-publication. | There is no substantial, justiciable controversy; the Tax Court’s actions are adequately documented and the relief sought is inconsequential to the outcome. | Appeal dismissed for lack of jurisdiction. |
| Public posting of STJ report creates reviewability | Location of STJ report on the Tax Court’s website constitutes an appealable issue. | Publication and website labeling do not create a cognizable appellate issue; the relief sought lacks impact on the judgment. | Appeal dismissed for lack of jurisdiction. |
| Impact of STJ report’s controlling status on liability | STJ report should have been the controlling Tax Court decision under mandate. | Parties stipulated to liability amount; issue is not contested; focus is on procedural publication and label. | Not an independent issue; appeal dismissed for lack of jurisdiction. |
Key Cases Cited
- Ballard v. Commissioner, 544 U.S. 40 (U.S. 2005) (mandate to rely on STJ report for Tax Court decision; accessibility of STJ findings)
- Kanter v. C.I.R., 590 F.3d 410 (7th Cir. 2009) (reversed Tax Court findings; mandated adoption of STJ report on remand)
- Electrical Fittings Corp. v. Thomas & Betts Co., 307 U.S. 241 (Supreme Court 1939) (party may not appeal from a favorable judgment)
- Bell v. Hood, 327 U.S. 678 (Supreme Court 1946) (subject-matter jurisdiction lacking when claim is wholly insubstantial)
- Deposit Guaranty Nat. Bank v. Roper, 445 U.S. 326 (Supreme Court 1980) (aggrievement requirement to sustain appeal; not aggrieved by a favorable judgment)
- Environmental Protection Information Center, Inc. v. Pacific Lumber Co., 257 F.3d 1071 (9th Cir. 2001) (recognizes exceptions to the general rule about aggrievement and appeals)