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V. Fraud on the Court
Although rule 60(b) of the Federal Rules of Civil Procedure
provides a list of the grounds upon which a court may relieve a
party or a party's legal representative from a final judgment,
the rule also includes a so-called saving clause which states:
"This rule does not limit the power of a court * * * to set aside
a judgment for fraud upon the court." It is well settled that
the Tax Court may reopen and set aside a decision on the basis of
fraud on the Court. See Toscano v. Commissioner, 441 F.2d 930
(9th Cir. 1971) (fraud on the court properly raised where the
taxpayer asserted that the Court's decision sustaining the
Commissioner's determination of joint deficiencies was based on
tax returns on which the taxpayer's signature was either forged
or made under duress), vacating 52 T.C. 295 (1969).
A. Case Law Survey
Hazel-Atlas Glass Co. v. Hartford-Empire Co., 322 U.S. 238
(1944), overruled on other grounds Standard Oil v. United
States, 429 U.S. 17, 18 (1976), is the leading case considering
fraud on the court. In Hazel-Atlas Glass, certain officials and
attorneys representing Hartford Empire Co. (Hartford)
fraudulently prepared and published an article in a trade
publication that Hartford subsequently used to support its
pending application for a patent before the Patent Office. After
obtaining the patent, Hartford sued Hazel-Atlas Glass Co. (Hazel)
for infringement in a District Court. The District Court
dismissed the case on the ground that no infringement had been
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