County of Sacramento v. Gorski et al

Filing 33

ORDER RE REMAINING INTERPLEAD FUNDS before District Judge George H. Wu on 6/13/2017 ORDERING This Court granted the IRS's motion for summary judgment and held that: "Gorski is entitled to $98,725.50 in attorney's fees awarded to Robert Hunter in Hunter et al, v. County of Sacramento"; "[IRS's] tax liens attach to Gary Gorski's entire interest in the attorney's fees awarded to Robert Hunter in Hunter et al., v. County of Sacramento"; and "t he Clerk of the Bankruptcy Court for the EDCA shall pay $98,725.50 currently in the Bankruptcy Court's registry in connection with the Adversary Proceeding No. 14-2016 for application toward the unpaid Federal income tax liabilities of Gar y Gorski"; In the appeal of the Bankruptcy Court's order approving the compromise as to Eley's half of the attorney's fees, this Court affirmed that order; It has now come to the Court's attention that, after issuing orders regarding the allocation of the interplead funds, there remains the sum of approximately $3,577.93 with interest accruing; The Court ORDERS the clerk to give notice to the parties in both Case(s) 16CV2528 and 16CV2611 of said amount and that said parties will have until 7/5/2017, to file a claim as to those funds; A Hearing is set for 7/10/2017 at 08:30 AM, before District Judge George H. Wu. (Reader, L)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES—GENERAL
Case No.

Date

2:16-cv-2611-GHW

Title In re Gorski
Present: The Honorable

June 13, 2017
Page

1 of 2

GEORGE H. WU, UNITED STATES DISTRICT JUDGE

Javier Gonzalez
Deputy Clerk

None Present
Court Reporter

Attorneys Present for Plaintiff(s)

Attorneys Present for Defendant(s)

None Present

None Present

Proceedings: (IN CHAMBERS) – ORDER RE REMAINING INTERPLEAD FUNDS

In the motion to withdraw the reference to the Bankruptcy Court of this adversary
proceeding, it was noted that: (1) “the County of Sacramento initiated this adversary proceeding
by filing a Complaint in Interpleader” as to “the attorney’s fees and costs, that total $199,916.90,
awarded in Hunter et al. v. County of Sacramento . . . (“District Court Action”)” (see Docket No.
1 at page 3 of 25); (2) “the District Court for the Eastern District of California ordered that each
of the Plaintiffs in the District Court Action (Hunter and Eley) [be] awarded half of the
attorney’s fees ($98,725.50 each)”1 (Id.); (3) the [bankruptcy] Trustee filed a motion to approve
compromise between Gorski, Eley, and the County of Sacramento, that among other things
allocated the half of the attorney’s fees awarded to Eley [only to those parties]” and “the motion
was granted by the Bankruptcy Court” (Id. at pages 3-4 of 25); (4) “Karalash and Hunter
appealed the Bankruptcy Court’s Order” − (“[t]he District Court case number for the appeal is
2:16-cv-2528-WBS”) (Id. at page 4 of 25); (5) Gorski and the Internal Revenue Service (“IRS”)
reached a compromise which was approved by the Bankruptcy Court whereby Gorski’s interest
in the half of the attorney’s fees awarded to Hunter was provided to the IRS (Id. at page 4 of 25);
and (6) ‘[t]he only remaining issue to be resolved [in the interpleader action] is the competing
claims to Hunter’s half of the attorney’s fee award” (Id.).
This Court granted the IRS’s motion for summary judgment and held that: (1) “Gorski is
entitled to $98,725.50 in attorney’s fees awarded to Robert Hunter in Hunter et al., v. County of
Sacramento;” (2) “[IRS’s] tax liens attach to Gary Gorski’s entire interest in the attorney’s fees
awarded to Robert Hunter in Hunter et al., v. County of Sacramento;” and (3) “the Clerk of the
Bankruptcy Court for the Eastern District of California shall pay $98,725.50 currently in the
Bankruptcy Court’s registry in connection with the Adversary Proceeding No. 14-2016 for
application toward the unpaid Federal income tax liabilities of Gary Gorski.” See Docket No. 31
1

“Gary Gorski, and Daniel Karalash represented plaintiffs Robert Hunter and Howard Eley in the District
Court Action” (see Docket No. 1 at page 3 of 25).
CV-90

CIVIL MINUTES—GENERAL

Initials of Deputy Clerk JG

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES—GENERAL
Case No.

Date

2:16-cv-2611-GHW

Title In re Gorski

June 13, 2017
Page

2 of 2

at 1-2.
In the appeal of the Bankruptcy Court’s order approving the compromise as to Eley’s half
of the attorney’s fees, this Court affirmed that order. See In re Gorski, 2:16-cv-2528-GHW,
Docket Nos. 27-29.
It has now come to the Court’s attention that, after issuing orders regarding the allocation
of the interplead funds, there remains the sum of approximately $3577.93 with interest accruing.
The Court orders the clerk to give notice to the parties in both case numbers 16-cv-2528 and 16cv-2611 of said amount and that said parties will have until July 5, 2017, to file a claim as to
those funds. A hearing is scheduled for July 10, 2017 at 8:30 a.m, to resolve any competing
claims. Should no party/person make a claim to said funds, they will be disposed of in the
normal course.

CV-90

CIVIL MINUTES—GENERAL

Initials of Deputy Clerk JG