United States of America v. Caraway et al

Filing 211

ORDER GRANTING UNITED STATES' MOTION TO SERVE ESTATE BY PUBLICATION; DIRECTIONS TO PARTIES. Notice shall be published in an approved newspaper for Washoe County and San Mateo County and shall appear in those newspapers not less than once per week for a period of not less than six consecutive weeks, the first such publication appearing no later than one week from the date of entry of this Order. The United States shall file with the Court a certification of publication upon completi on of such publication. The Estate of Lorraine Caraway and/or any heir, devisee, legatee, or any person or entity claiming an interest through the Estate of Lorraine Caraway shall appear or plead in this matter no later than eight weeks form the date of entry of this Order. Signed by Judge Maxine M. Chesney on 11/1/16. (mmclc2, COURT STAFF) (Filed on 11/1/2016)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN FRANCISCO DIVISION

11 UNITED STATES OF AMERICA,
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Case No. C-08-04371-MMC

Plaintiff,
GRANTING UNITED STATES'

v.
DOUGLAS R. CARAWAY; FREMONT
BANK; STATE OF CALIFORNIA
FRANCHISE TAX BOARD; STATE OF
CALIFORNIA EMPLOYMENT
DEVELOPMENT DEPARTMENT; SAN
JOAQUIN COUNTY DISTRICT
ATTORNEY’S OFFICE, FAMILY SUPPORT
DIVISION; CHESTER J. GILBERT;
COLLECTRONICS, INC.; JOHN EGGLI;
COLLECTION BUREAU OF CALIFORNIA;
AMANDA AND FRED HUMMEL; STEPHEN
CARAWAY; FLORENCE LINOR REGE; C.
THOMAS BISCARDI, ESTATE OF LORRAINE
K. CARAWAY, and PATRICK R. GILES,

[PROPOSED] ORDER TO APPEAR OR
PLEAD MOTION TO SERVE ESTATE BY
PUBLICATION; DIRECTIONS TO PARTIES

Defendants.

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The United States of America, through undersigned counsel, has moved for an order under 28

26 U.S.C. § 1655 compelling the Estate of Lorraine Caraway, and/or any heirs, legatees, devisees or any
27 person or entity claiming an interest through Lorraine Caraway or her Estate, to appear or plead by a day
28 certain and for leave to serve that order by publication.
[proposed] Order To Appear or Plead
C-08-04371-MMC

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BACKGROUND

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On September 17, 2008, the United States brought this action to foreclose federal tax liens
San Mateo

3 against a parcel of real property ("subject property") located in Santa Clara County, California. The
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4 United States sought to foreclose the tax liens and sell the subject property to satisfy, in part, unpaid

The United States submitted a declaration indicating that defendant

5 federal income tax assessments against Defendant Douglas Caraway. Defendant Douglas Caraway
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6 conveyed a 17% interest in the subject property to Lorraine Caraway prior to her death in 2002.
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See Declaration of Kathryn Clark, ECF 179-1.

Pursuant to 26 U.S.C. § 7403(b), all parties who may claim an interest in the subject property are

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9 to be named as a party to the action. The United States failed to name Lorraine Caraway or her estate as
10 a party to this action. Subsequently, the IRS attempted to sell the property at auction pursuant to the
11 Second Amended Judgment and Decree of Sale, however, the purchaser was unable to obtain title
12 insurance because of the 17% interest of Lorraine Caraway. See Declaration of Kathryn Clark, ECF
13 179-1.
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Defendant, Douglas Caraway, filed a Motion for Relief from Order, filed August 12, 2016,

15 which came before the court for hearing on September 23, 2016. After hearing argument, the Court
16 entered an Order on September 23, 2016, ordering the United States to file an amended Complaint
17 adding the Estate of Lorraine Caraway as a party to this action, and to either serve the Estate of Lorraine
18 Caraway or to request service by publication pursuant to 28 U.S.C. § 1655, accompanied by an affidavit
19 in support thereof, and a proposed order.
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The United States has filed a First Amended Complaint adding the Estate of Lorraine Caraway

and a Second Amended Complaint adding the unknown heirs of Lorraine Caraway as defendants

21 as a defendant. Because Lorraine Caraway died in Sparks, Nevada, Washoe County, the IRS assigned
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was asked

22 Revenue Officer Robert C. Kalman in Reno, Nevada, to research county records to determine if the
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23 Estate of Lorraine Caraway was probated since her death in 2002. See ECF 190-1, Lorraine Caraway’s
24 death certificate. Revenue Officer Kalman researched records in Washoe County and determined that
25 no probate had been opened for Lorraine Caraway’s estate. The United States submitted Revenue
26 Officer Kalman’s Declaration in support of its Motion for Leave to Serve the Estate of Lorraine
, setting forth the above facts as to his investigation.

27 Caraway by Publication.
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[proposed] Order To Appear or Plead
C-08-04371-MMC

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Before the Court is the United States’ Motion for Leave to Serve the Estate of Lorraine Caraway

2 by Publication. For good cause shown, it is hereby ORDERED that:
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1. The United States’ Motion is GRANTED;

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2. The Estate of Lorraine Caraway and/or any heir, devisee, legatee or any person or entity
shall

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claiming an interest through the Estate of Lorraine Caraway, to appear or plead in this matter

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not later than eight weeks from the date of entry of this Order;

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3. Notice of this Order shall by published in an approved newspaper for Washoe County,
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San Mateo

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Nevada, the residence of Lorraine Caraway at her date of death, and Santa Clara County,

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California, the location of the subject property, and shall appear in those newspapers not less

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than once per week for a period of not less than six consecutive weeks;

, the first such publication appearing no later than one week from the date of entry of this Order;
4. ^ The United States shall file with the Court a certification of publication upon completion

the requirements of paragraph 3, above.

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November
SO ORDERED this _____ day of ________, 2016.

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_____________________________
MAXINE M. CHESNEY
United States District Judge

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[proposed] Order To Appear or Plead
C-08-04371-MMC

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of