United States of America v. Allen et al
MEMORANDUM AND OPINION by Senior Judge Thomas B. Russell on 10/13/2016; re 21 MOTION for Default Judgment as to filed by United States of America ; separate judgment entered this date.cc:counsel, Office of the Kentucky Attorney General, Karen Allen (KJA)
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF KENTUCKY
CIVIL ACTION NO. 5:15-CV-00200-TBR
UNITED STATES OF AMERICA,
BRENT ALLEN, et al.,
The United States brought this action to reduce to judgment certain tax
assessments made against Brent M. Allen, including a claim to foreclose on real property
to which federal tax liens had attached pursuant to 26 U.S.C. § 7403(a). [See R. 1 at 2–
11, ¶¶ 5–14 (Complaint).] Since the Commonwealth of Kentucky might possess a lien
upon or interest in the subject property, the United States named the Commonwealth as a
party to this litigation. See 28 U.S.C. § 7403(b). The Commonwealth, by and through
the Attorney General of the Commonwealth of Kentucky, was served with copies of the
complaint and summons on November 19, 2015. [See R. 7 at 1–2 (Proof of Service); R.
14-1 at 1, ¶ 3 (Hoffman-Logson’s Declaration).] However, the Commonwealth neither
appeared, nor filed an answer or any other pleading to defend against this action.
Accordingly, the Court entered default against the Commonwealth on March 15, 2016.
[R. 20 at 1 (Entry of Default).] Now, the United States has filed a motion for the entry of
default judgment against the Commonwealth under Federal Rule of Civil Procedure
55(b)(2). [R. 21 at 1 (Motion for Entry of Default Judgment).]
The Court finds the entry of default judgment against the Commonwealth to be
appropriate. See Fed. R. Civ. P. 55(b)(2). Pursuant to 26 U.S.C. § 7403(c), after the
parties “have been duly notified of the action,” this Court must “adjudicate all matters”
and “determine the merits of all claims and liens upon the property” at issue. 26 U.S.C. §
7403(c); see also United States v. Winsper, 680 F.3d 482, 488 (6th Cir. 2012). Despite
proper notice of this action, the Commonwealth has elected not to participate: It has
asserted no claim to the subject property and has interposed no defense to the United
States’ action. In contrast, the United States has diligently litigated this action and will
be prejudiced by further delay. See United States v. Suganuma, 546 F. Supp. 2d 996,
1001 (D. Haw. 2008).
Accordingly, United States’ Motion for Entry of Default Judgment, [R. 21], is
GRANTED. A default judgment shall issue separate from this Memorandum Opinion,
decreeing that the Commonwealth has no interest in the subject property and no claim to
any proceeds from the sale thereof.
October 13, 2016
Counsel of Record
Office of the Attorney General
700 Capital Avenue, Suite 118
Frankfort, Kentucky 40601-3449
5028 Pointclear Court
Arlington, Texas 76017
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