Chicago Title Company v. Performance Welding & Machine, Inc. et al.

Filing 10

ORDER Directing Disbursement of Funds and Closing Case, signed by District Judge Dale A. Drozd on 2/28/17. CASE CLOSED. (Gonzalez, R)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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CHICAGO TITLE COMPANY, a
California corporation,
Plaintiff,

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No. 1:16-cv-01899-DAD-EPG

ORDER DIRECTING DISBURSEMENT OF
FUNDS AND CLOSING CASE

v.
PERFORMANCE WELDING &
MACHINE, INC., a Nevada corporation,
BRITZ AG FINANCE CO., INC., a
California corporation; U.S.
DEPARTMENT OF THE TREASURY–
INTERNAL REVENUE SERVICE;
STATE OF CALIFORNIA, FRANCHISE
TAX BOARD; and DOES 1-20, inclusive,
Defendants.

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This interpleader action was filed in Fresno County Superior Court in April 2016. (Doc.

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No. 1-1.) The complaint alleges plaintiff was named as trustee under a deed of trust for a

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property owned by defendant Performance Welding and foreclosed upon in November 2015. (Id.

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at 6–7.) After payment to the beneficiary and associated fees, a balance of $106,330.22

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remained, in which each of the defendants may have had some interest or lien. (Id.) Plaintiff

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thereafter filed this action and deposited the remaining funds with the Fresno County Superior

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Court. (See Doc. No. 1-1.) The matter was removed to this court by defendant Department of the

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Treasury on December 20, 2016 pursuant to 28 U.S.C. § 1442(a)(1). (Doc. No. 1.) Defendant
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Britz expressly disclaimed any interest in the funds in a filing submitted to the Fresno County

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Superior Court. (See Doc. No. 7-1.) Default was entered against defendants Performance

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Welding and California’s Franchise Tax Board (“FTB”) in the state court on October 11, 2016.

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(Doc. No. 7-2.)

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On February 24, 2017, plaintiff and defendant Department of the Treasury filed a

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stipulation that this action be dismissed and the remaining funds be distributed to defendant

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Department of the Treasury. (Doc. No. 9.) The stipulation recounts that, on December 28, 2016,

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counsel for plaintiff also independently contacted the FTB to ensure the state tax board’s default

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was not an oversight, and was informed that it was not an oversight and the FTB believes the

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federal tax lien has priority. (Id. at ¶ 11.)

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Given the foregoing:

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1. The funds deposited with the Fresno County Superior Court totaling $106,330.22, plus

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all accrued interest, shall be disbursed to the United States, payable to “United States Department

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of Justice” and mailed to Paul T. Butler, Esq., U.S. Department of Justice, Tax Division, Civil

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Trial Section (Western), P.O. Box 683, Washington, D.C., 20044;

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2. Plaintiff is discharged for any and all liability in this action with respect to the
$106,330.22 interplead with the Fresno County Superior Court;
3. The court will retain jurisdiction over the action to the extent necessary to enforce the
parties’ stipulation;
4. This action is dismissed and the Clerk of Court is directed to close this case.
IT IS SO ORDERED.
Dated:

February 28, 2017
UNITED STATES DISTRICT JUDGE

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