County of Sacramento v. Gorski et al

Filing 39

ORDER DIRECTING FINAL DISTRIBUTION OF INTERPLEADER FUNDS signed by District Judge George H. Wu on 9/27/2017. (cc BK Clerk, BK Judge Kline) (Washington, S)

cc: Fiscal Section

IN THE UNITED STATES DISTRICT COURT FOR THE
EASTERN DISTRICT OF CALIFORNIA
Case No. 2:16-cv-2611-GHW

In re:
GARY GORSKI,
Debtor.
COUNTY OF SACRAMENTO,
Plaintiff,

ORDER DIRECTING FINAL
DISTRIBUTION OF INTERPLEADER
FUNDS

v.
GARY GORSKI, et al.,
Defendants.

On May 18, 2017, the Court granted the United States’ motion for summary judgment
and held that: (1) Gary Gorski is entitled to $98,725.50 in attorney’s fees awarded to Robert
Hunter in Hunter et al., v. County of Sacramento, Case No. 2:06-cv-00457-GEB-AC in the
District Court for the Eastern District of California; and (2) the United States’ 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. See ECF No. 31. The Court also directed the Clerk of the Bankruptcy
Court for the Eastern District of California to pay $98,725.00 for application toward Gary
Gorski’s unpaid federal income tax liabilities. Id.

There remains approximately $3,577.93 (with interest accruing) in the Court’s registry,
apparently relating to an award of costs in the Hunter et al., v. County of Sacramento. On June
14, 2017, the Court issued an order directing all parties to file a claim as to the remaining funds.
ECF No. 33.
On July 5, 2017, the United States filed a claim based on the tax liens against Gary
Gorski, the attorney-client agreement between Gorski and Hunter, and Gorski’s representations
made in his application for costs in Hunter et al., v. County of Sacramento stating that he paid
the costs out of his pocket. ECF No. 34. No other party has filed a claim to the remaining funds.
Based on the Court’s review of the record and the United States’ claim to the remaining
funds, the Court DETERMINES as follows:
A.

Gary Gorski is entitled to recover the costs awarded in Hunter et al., v. County of

Sacramento, Case No. 2:06-cv-00457-GEB-AC in the District Court for the Eastern
District of California;
B.

The United States’ tax liens attach to Gary Gorski’s interest in the costs awarded

in Hunter et al., v. County of Sacramento.

THEREFORE, IT IS ORDERED THAT the Clerk of the Bankruptcy Court for the Eastern
District of California shall pay all the remaining funds 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. The payment shall be made without
reduction of any registry fees per 56 Fed. Reg. 56356-01. The check shall be made payable to the
United States Department of Justice and sent to:

William Thompson
Office of Review
Dept. of Justice, Tax Division
P.O. Box 310
Washington, DC 20044

IT IS FURTHER ORDERED THAT the District Court Clerk shall enter judgment accordingly
and close this case.

Dated: September 27, 2017
GEORGE H. WU
United States District Judge

Submitted by:
DAVID A. HUBBERT
Acting Assistant Attorney General
BORIS KUKSO
RIKA VALDMAN
Trial Attorneys, Tax Division
U.S. Department of Justice
P.O. Box 683
Washington, D.C. 20044
Of Counsel:
Phillip A. Talbert
United States Attorney
Attorneys for the United States of America