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COURT ENTERS STIPULATION ON PRIORITY OF LIENS.

APR. 5, 2007

Carey, Michael, et al., U.S. v.

DATED APR. 5, 2007
DOCUMENT ATTRIBUTES
  • Case Name
    UNITED STATES OF AMERICA Plaintiff, v. MICHAEL CAREY, ET AL., Defendants.
  • Court
    United States District Court for the Eastern District of California
  • Docket
    No. 2:05-cv-02176
  • Judge
    England, Morrison C., Jr.
  • Cross-Reference
    For a prior opinion in United States v. Michael Carey et al.,

    No. 2:05-cv-2176 (E.D. Cal. Apr. 20, 2006), see Doc 2006-11903

    or 2006 TNT 120-12.
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2007-8493
  • Tax Analysts Electronic Citation
    2007 TNT 70-8

Carey, Michael, et al., U.S. v.

 

UNITED STATES DISTRICT COURT

 

EASTERN DISTRICT OF CALIFORNIA

 

 

McGregor W. Scott

 

United States Attorney

 

 

Paul S. Ham

 

Trial Attorney, Tax Division

 

United States Department of Justice

 

P.O. Box 683, Ben Franklin Station

 

Washington, DC 20044-0683

 

Telephone: (202) 307-6421

 

Facsimile: (202) 307-0054

 

 

Attorneys for the United States of America

 

 

STIPULATION BETWEEN THE UNITED STATES AND PATRICIA WELCH

 

(AKA PATRICIA KOERNER), AND ORDER

 

 

Plaintiff United States of America and defendant Patricia Welch (aka Patricia Koerner), through their respective attorneys, hereby agree and stipulate as follows:

1. The United States has made assessments against defendants Michael and Leone Carey for their outstanding federal income (Form 1040), plus penalties and interest, for 1995 through 2000 ("tax years at issue"). The United States has recorded Notices of Federal Tax Lien with the County Recorder's Office for Shasta County, California ("County Recorder") to secure Michael and Leone Careys' unpaid tax debts, plus penalties and interest, for the tax years at issue.

2. Patricia Welch entered into a Deed of Trust, recorded with the County Recorder on August 13, 1996 with Michael Bloomquist (as trustee of the Hidden Meadows Holding Trust), regarding the Bella Vista Property. The United States has moved for summary judgment, seeking the Court to adjudicate that Michael and Leone Carey are the true and beneficial owners of the Bella Vista Property despite any purported interest held by the Hidden Meadows Holding Trust. See Dkt., No. 84. Patrica Welch does not oppose the United States' summary judgment motion. See Dkt., No. 92. Therefore, the United States and Patricia Welch agree that the United States' tax liens securing Michael and Leone Careys' unpaid tax debts for the tax years at issue and Patricia Welch's interest as the beneficiary on the Deed of Trust attach to the Bella Vista Property, located at 23658 Highway 299E, Bella Vista, California 96008, which is particularly described as follows:

 

All that portion of the North one-half of the Southwest one-quarter of Section 35, Township 33 North, Range 3 West, M.D.B. & M., lying North of the California State Highway No. 299E.

Excepting therefrom all that portion conveyed in the deed to Kenneth E. Spencer and Ruth Melba Spencer, husband and wife, recorded March 16, 1970 in Book 1022 of Official Records, Page 270, Shasta County Records.

Also excepting therefrom "All mineral lands except coal or iron lands" as excepted in the patent from the United States of America, recorded April 7, 1896 in Book 5 of patents, page 275, Shasta County Records.

Also excepting therefrom one-third of all minerals or other hydrocarbon substances in said above described property with the right to enter upon said land and remove the same as reserved in the deed recorded April 28, 1960 in book 633 official records at page 292, Shasta County Records.

 

3. The United States and the Patricia Welch agree that Patricia Welch's claim, through Deed of Trust, is senior to the United States' claim, through its tax liens, against the Bella Vista Property. Therefore, the United States and Patricia Welch agree that the proceeds generated from any judicial or voluntary sale of the Bella Vista Property as related to this action, shall be distributed in such a way to satisfy Patricia Welch's claim prior to satisfaction of the United States' claim against the Bella Vista Property.

4. The United States and Patricia Welch are to bear their respective costs, including any possible attorney's fees or other expenses of this litigation. Patricia Welch is hereby dismissed from this action.

Dated this 30th day of March, 2007.

McGregor W. Scott

 

United States Attorney

 

 

Paul S. Ham

 

Trial Attorney, Tax Division

 

U.S. Department of Justice

 

Post Office Box 683,

 

Ben Franklin Station

 

Washington, D.C. 20044

 

Telephone: (202) 307-6421

 

Facsimile: (202) 307-0054

 

 

(Attorneys for the United States)

 

Dated this 23rd day of March, 2007.
Scott Putnam

 

Wells, Small, & Selke

 

292 Hemsted Drive

 

Redding, CA 96002

 

Telephone: (530) 223-1800

 

Facsimile: (530) 223-1809

 

 

(Attorney for Patricia Welch)

 

IT IS SO ORDERED.

DATED: April 5, 2007.

Morrison C. England, Jr.

 

United States District Judge
DOCUMENT ATTRIBUTES
  • Case Name
    UNITED STATES OF AMERICA Plaintiff, v. MICHAEL CAREY, ET AL., Defendants.
  • Court
    United States District Court for the Eastern District of California
  • Docket
    No. 2:05-cv-02176
  • Judge
    England, Morrison C., Jr.
  • Cross-Reference
    For a prior opinion in United States v. Michael Carey et al.,

    No. 2:05-cv-2176 (E.D. Cal. Apr. 20, 2006), see Doc 2006-11903

    or 2006 TNT 120-12.
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2007-8493
  • Tax Analysts Electronic Citation
    2007 TNT 70-8
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