“Highland Asks For Chance To Prove IRS Acting In Bad Faith”
Highland Capital Management LP told the Second Circuit on Thursday that it deserves an opportunity to prove that the Internal Revenue Service’s demand on Barclays PLC for details about the entities’ $220 million litigation settlement was made in bad faith, after a Manhattan federal judge rejected that contention last year.
The $21 billion investment adviser told U.S. Circuit Judges Jose A. Cabranes, Rosemary S. Pooler and Reena Raggi that it had met a burden established by the U.S. Supreme Court in U.S. v. Clarke that it had raised an inference of improper purpose.
Last year, without an evidentiary hearing, U.S. District Judge Colleen McMahon rejected Dallas-based Highland’s contention that the IRS had an improper motive.
“We just want our day in court,” Highland’s counsel, William M. Katz Jr. of Thompson & Knight LLP, told the judges.