United States of America v. Arthur et al

Filing 118

MEMORANDUM AND ORDER IT IS HEREBY ORDERED that the United States request for entry of an Order of Sale is GRANTED. (Doc. No. 111.) A separate Order of Sale shall be entered. Signed by District Judge Audrey G. Fleissig on 10/3/12. (JWJ)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION

UNITED STATES OF AMERICA,
Plaintiff,
vs.
JOHN P. ARTHUR, et. al.,
Defendants.

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Case No. 4:10CV01561 AGF

MEMORANDUM AND ORDER
This matter is before the Court on the United States’ request for the entry of an
order specifying the terms and conditions applicable to the Unites States’ sale of the real
property located at 12894 Pelham Estates Drive, St. Louis, Missouri 63131 (“the
Property”) to the judgment entered in this action authorizing the foreclosure of federal tax
liens against Defendants Arthur and Tandy Thompson. Defendants object to the entry of
the order proposed by the United States (“the Proposed Order of Sale”).
Arthur and Thompson object to Paragraph 4 of the Proposed Order of Sale, which
requires them to take reasonable steps to preserve the Property in its current condition,
including maintaining an insurance policy on it, until it is sold. That paragraph also
prohibits Arthur and Thompson from committing waste against the Property, doing
anything that reduces the value or marketability of the Property, or permitting anyone else
to take any of those actions. Arthur and Thompson assert that there is no legal basis for
the imposition of these conditions. In addition, Arthur asserts that because Thompson has

an order of protection against him, he cannot visit the Property and will not be able to
comply with these conditions. The Court finds these assertions without merit.
Pursuant to 26 U.S.C. § 7403(c) and 28 U.S.C. § 2001(a), the Court has authority
to order a sale of the Property to permit enforcement of its judgment. The language in
Paragraph 4 is not unreasonable or unwarranted. Arthur and Thompson currently hold
legal title to the Property, and when the Property is sold, Arthur and Thompson will
benefit. Arthur’s one-half share of the net sale proceeds will reduce his delinquent tax
liabilities. Thompson will receive the other half of the net sale proceeds for her own
personal use. An order requiring the preservation of the Property and prohibiting actions
that may reduce its value or marketability is consistent with their interests as well as the
interests of the United States. In addition, the conditions here are not unusual, and
district courts have issued orders of sale containing the same terms as those in Paragraph
4 of the proposed order. See, e.g., United States v. Kennedy, No. 1:05-CV-00084, 2007
WL 1424448 at * 3 (D. N.D. April 3, 2007); United States v. Drescher, No. 01-1705
(RHK/JMM), 2004 Wl 909427 at *3 (D. Minn. Mar. 15, 2004).
With respect to the effect of the order of protection, the Court agrees with the
United States’ assertion that because none of the requirements of Paragraph 4 require
Arthur to visit the property, the protective order will not prevent him from complying
with the order of sale.
Arthur also objects to the portion of Paragraph 5 of the Proposed Order of Sale
which states that all persons occupying the Property must vacate it upon 30 days notice
and determines the disposition of any personal property left behind. Arthur takes issue
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with this provision, asserting that the protective order would keep him from timely
retrieving any personal items he may have at the Property. The United States has offered
alternative language allowing Arthur an additional five days, after Thompson has vacated,
to retrieve his personal items from the Property. In the Court’s view, this change
adequately addresses Arthur’s concern.
For the reasons set forth above the Court will enter the Proposed Order of Sale
with the modification suggested by the United States to address Arthur’s objections.
Accordingly,
IT IS HEREBY ORDERED that the United States’ request for entry of an Order
of Sale is GRANTED. (Doc. No. 111.) A separate Order of Sale shall be entered.

_________________________________
AUDREY G. FLEISSIG
UNITED STATES DISTRICT JUDGE

Dated this 3rd day of October, 2012.

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