United States of America v. Crihfield et al

Filing 34

ORDER of Foreclosure and Judicial Sale. Signed by Judge Andrew P. Gordon on 7/24/2019. (Copies have been distributed pursuant to the NEF - SLD)

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RICHARD E. ZUCKERMAN
Principal Deputy Assistant Attorney General

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CHARLES M. DUFFY
Trial Attorney, Tax Division
U.S. Department of Justice
P.O. Box 683
Ben Franklin Station
Washington, D.C. 20044-0683
Telephone: [phone]
Facsimile: [phone]
[e-mail]

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DAYLE ELIESON
United States Attorney
Of Counsel

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Attorneys for the United States of America
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UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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UNITED STATES OF AMERICA,

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Plaintiff,
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v.
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RAYMOND W. CRIHFIELD; LISA A.
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CRIHFIELD; AMBER L. CRIHFIELD; and
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DISCOVER BANK
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Defendants.
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_______________________________________)

Case No. 2:17-cv-02854-APG-GWF
(Proposed) ORDER OF FORECLOSURE
AND JUDICIAL SALE

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This Order of Foreclosure and Judicial Sale is entered pursuant to the provisions of 28
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U.S.C. §§ 2001 and 2002 and 26 U.S.C. §§ 7402 and 7403. The Court hereby orders as follows:
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1.

On July 8, 2019, summary judgment was entered against Raymond W. Crihfield

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and Lisa A. Crihfield (hereafter “the Crihfields”) regarding their 2003, 2004, 2006, 2007, 2009,
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2010 and 2011 federal income tax liabilities. See ECF #32. The aggregate amount of income
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tax liabilities owed by the Crihfields for those years is $326,664.32 as of October 19, 2018, plus

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statutory interest accruing thereafter. See ECF #17, at page 8 (¶ 31) and ECF #20, at ¶¶ 49-55.

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2.

In its July 8, 2019 order, the Court also granted summary judgment regarding the

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United States’ claim that it could foreclose its federal tax liens arising from the IRS assessments

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made against the Crihfields against two real properties that have been referred to in this matter as

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the “Hardy” and “Windsong” properties (also referred to below as the “subject properties”). See

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ECF #32.

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3.

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The Hardy property is located at 3140 West Hardy Lane, Pahrump, Nevada 89048

and also is legally described as follows:

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Parcel one Hundred Twenty-four (124) of CHARLESTON PARK RANCHOS UNIT

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NO. 1, recorded September 18, 1959 as File No. 32752 in Book C of Surveys, Page 279,

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Nye County, Nevada Records.

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EXCEPTING THEREFROM all of its right, title and interest in and to all of the minerals,

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including gas, coal, oil and oil shales, as disclosed by Deed recorded December 11, 1959

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as Document No. 33209 in Book 36, Page 221, Official Records, Nye County, Nevada.

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Excepting therefrom the mobile home located thereon.

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Assessor’s Parcel Number: 28-682-01.

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4.

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The Windsong property is located at 3021 West Windsong Lane, Pahrump,

Nevada and also is legally described as follows:

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Lot Thirty-Three (33) of GOLDEN SPRING RANCH UNIT NO. 1 as shown by map

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thereof recorded May 20, 1963 as File No. 44480 in the Office of the County Recorder of

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Nye County, Nevada.

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Assessor’s Parcel Number: 41-402-01.

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5.

The United States has valid and subsisting tax liens on all property and rights to

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property of the Crihfields, including the Hardy and Windsong properties, arising from the
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assessments described in paragraph 48 of Complaint in this action, which tax liens are effective
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as of the dates of those assessments. The United States further protected its liens by filing
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various Notices of Federal Tax Lien in the Nye County, Nevada, Recorder’s Office.
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6.

Section 7403 of Title 26 (U.S.C.) entitles the United States to enforce its liens

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against the Hardy and Windsong properties in order to apply the proceeds towards the federal tax
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liabilities of the Crihfields.
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7.

The United States’ federal tax liens against the Hardy and Windsong properties

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are hereby foreclosed.
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8.

The United States Marshal for the District of Nevada, his/her representative, or an

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Internal Revenue Service Property Appraisal and Liquidation Specialist (“PALS”) representative
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is authorized and directed under 28 U.S.C. §§ 2001 and 2002 to offer for public sale and to sell
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the Hardy and Windsong properties, free and clear of the right, title and interest of all parties to
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this action and any successors in interest or transferees of those parties. The United States may
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choose either the United States Marshal or a PALS representative to carry out the sales under this
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Order of Foreclosure and Judicial Sale and shall make the arrangements for any sales as set forth
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in this Order.
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9.

This Order of Foreclosure and Judicial Sale shall act as a special writ of execution

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and no further orders or process from the Court shall be required.
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10.

The United States Marshal for the District of Nevada, his/her representative, or a

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PALS representative is authorized to have free access to the Hardy and Windsong properties and
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to take all actions necessary to preserve those properties including, but not limited to, retaining a
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locksmith or other person to change or install locks or other security devices on any part of the

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properties, until deeds to the subject properties is delivered to the ultimate purchaser(s).

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The terms and conditions of the sales shall be:
a.

Except as otherwise stated herein, the sales of the Hardy and Windsong

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properties shall be by public auction to the highest bidder, free and clear of

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all liens and interests.

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b.

The sales shall be subject to all laws, ordinances, and governmental

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regulations (including building and zoning ordinances), affecting the

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premises, and easements and restrictions of record, if any.

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c.

The sales shall be held at the United States District Court for the District

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of Nevada on the premises of the subject properties, or at any other place

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in accordance with the provisions of 28 U.S.C. §§ 2001 and 2002, at a date

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and time announced by the United States Marshal, his/her representative,

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or a PALS representative.

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d.

Notice(s) of the sales shall be published once a week for at least four

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consecutive weeks before the sales in at least one newspaper regularly

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issued and of general circulation in Nye County, and, at the discretion of

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the Marshal, his/her representative, or a PALS representative, by any other

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notice deemed appropriate. The notice(s) of sales shall contain a

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description of the subject properties and shall contain the material terms

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and conditions of sale in this Order of Foreclosure and Judicial Sale.

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e.

The sales of the Hardy and Windsong properties is ordered pursuant to 26
U.S.C. §§ 7402, 7403 and 28 U.S.C. §§ 2001, 2002. State or local law

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notice requirements for foreclosures or execution sales do not apply to a

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sale under federal law. Redemption rights under state or local law do not

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apply to the sales of the subject properties under federal law.

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f.

The minimum bids will be set by the Internal Revenue Service for the

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sales of the Hardy and Windsong properties. If the minimum bids are not

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met or exceeded, the Marshal, his or her representative, or a PALS

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representative may, without further permission of this Court, and under the

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terms and conditions in this Order of Foreclosure and Judicial Sale, hold

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new public sales, if necessary, and reduce the minimum bid or sell to the
highest bidder.

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g.

The successful bidders for the subject properties shall be required to

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deposit at the time of sales with the Marshal, his/her representative, or a

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PALS representative, a minimum of ten percent of the minimum bid with

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the deposit to be made by cash or a certified or cashier’s check payable to

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the United States District Court for the District of Nevada. Before being

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permitted to bid at the sales, bidders shall display to the Marshal, his/her

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representative, or a PALS representative proof that they are able to comply

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with this requirement. No bids will be received from any person(s) who

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have not presented proof that, if they are the successful bidder(s), they can

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make the deposit required by this order.

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h.

The balance of the purchase price(s) for the subject properties is to be paid

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to the Marshal, his/her representative, or a PALS representative

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(whichever person is conducting the sales) within thirty (30) days after the

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date the bid is accepted, by a certified or cashier’s check payable to the

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United States District Court for the District of Nevada. If the successful

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bidder fails to fulfill this requirement, the deposits shall be forfeited and

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shall be applied to cover the expenses of the sale, including commissions

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due under 28 U.S.C. § 1921(c), with any amount remaining to be applied

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to the unpaid federal tax liabilities of the Crihfields covered by the federal

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tax liens at issue here. The subject properties shall again be offered for

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sale under the terms and conditions of this Order of Foreclosure and

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Judicial Sale or, in the alternative, sold to the second highest bidder. The

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United States may bid as a credit against its judgment without tender of

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cash.

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i.

The sales of the Hardy and Windsong properties shall be subject to

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confirmation by this Court. The Marshal, his/her representative, or a

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PALS representative shall file a report or reports of the sales with this

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Court within thirty (30) days after the Clerk notifies the United States that

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the balance of the purchase price has been received into the Court’s

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registry.

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j.

Upon confirmation of the sales, the Marshal, his/her representative, or

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PALS representative shall promptly execute and deliver deeds of judicial

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sales conveying the subject properties to the purchaser(s).

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k.

The purchasers shall proceed to have the Nye County Recorder’s Office

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record the transfer of the Hardy and Windsong properties upon that

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county’s register of title. The responsibility for recording the deeds with

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the Nye County Recorder’s Office, and the payment of all costs, fees, and

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taxes of whatever kind related to the recording of such deed, shall be

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borne exclusively by the purchasers as a term and condition of the sales.
l.

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Upon confirmation of the sales, the interests in, liens against, or claims to,

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the Hardy and Windsong properties that are held or asserted by any and all

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parties to this action or any successors in interest or transferees of those

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parties shall be discharged and extinguished.

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12.

Until the Hardy and Windsong properties are sold, the Crihfields, their designee,

and any occupant of the subject properties, shall take all reasonable steps necessary to

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preserve the such properties (including all buildings, improvements, fixtures and appurtenances

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on the properties) in its current condition. Any occupants of the subject properties (or if there is

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none, then the Crihfields or their designee) must maintain a fire and casualty insurance policy on

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the subject properties. The Crihfields, their designee, and any occupant of the subject properties

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shall not commit waste against the same nor cause nor permit anyone else to do so. They shall

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neither do anything that tends to reduce the value or marketability of the subject properties nor

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cause nor permit anyone else to do so. They shall not record any instruments, publish any notice,

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or take any other action (such as running newspaper advertisements or posting signs) that may

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directly or indirectly tend to adversely affect the value of the subject properties or that may tend

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to deter or discourage potential bidders from participating in the public auction(s), nor shall they

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cause or permit anyone else to do so. Violation of this paragraph shall be deemed a contempt

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of court and punishable as such.

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13.

All persons occupying the Hardy and Windsong properties shall leave and vacate

permanently the properties within thirty (30) days of the date of this Order of Foreclosure and

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Judicial Sale, each taking with them his or her personal property (but leaving all improvements,

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buildings, fixtures, and appurtenances to the subject properties). If any person fails or refuses to

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leave and vacate the subject properties by the time specified in this Order, the United States

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Marshal’s Office is authorized to take whatever action it deems appropriate to remove such

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person or persons from the premises, whether or not the sales of such subject properties are being

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conducted by a PALS representative. Such action may include, but is not limited to, the use of

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reasonable force, and to enter and remain on the premises, including, but not limited to, the land,

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and any structures or vehicles thereon, for the purposes of executing this Order. The United

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States Marshal is further authorized and directed to arrest and/or evict from the premises any and

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all persons who obstruct, attempt to obstruct, or interfere or attempt to interfere in any way with

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the execution of this Order. When the United States Marshal concludes that all unauthorized

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persons have vacated, or been evicted from the subject properties, he/she shall relinquish

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possession and custody of the subject properties to the Internal Revenue Service, or its designee.

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No person shall be permitted to return to the subject properties and/or remain thereon without the

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express written authorization by the United States Marshal and/or the Internal Revenue Service,

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and/or the United States Department of Justice, or their respective representatives and/or

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designees. Unauthorized persons who re-enter the subject properties during the time this Order

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is in effect may be ejected by the United States Marshal without further order of this Court.

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14.

Notwithstanding the terms of the immediately preceding paragraph, if, after the

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sales of the Hardy and Windsong properties are confirmed by this Court, the properties remain

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occupied, a writ of assistance may, without further notice, be issued by the Clerk of Court to the

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purchaser(s) thereof.

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15.

If any person fails or refuses to remove his or her personal property from the

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Hardy and Windsong properties by the time specified herein, the personal property remaining at

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or on the subject properties thereafter is deemed forfeited and abandoned, and the United States

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Marshal’s Office or the PALS representative is authorized and directed to remove and dispose of

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it in any manner they see fit, including sale, in which case the proceeds of sale are to be applied

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first to the expenses of sale, and then to the federal tax liabilities of the Crihfields covered by the

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federal tax liens at issue here.

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16.

The Marshal, his or her representative, or a PALS representative, shall deposit the

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amounts paid by the purchaser or purchasers of the subject properties into the registry of the

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court. Upon appropriate motion for disbursement or stipulation of the parties, the Court will

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disburse the funds in the following partial order of preference until these expenses and liens are

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satisfied:

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a.

First, to the IRS, for allowed costs and expenses of the sales, including any

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commissions due under 28 U.S.C. § 1921(c) and including an amount

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sufficient to cover the costs of any steps taken to secure or maintain the

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subject properties pending sale and confirmation by the Court;

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b.

Second, to Nye County for any and all liens it may have on the subject

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properties for unpaid real property taxes or special assessments at the time

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of sales;

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c.

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liabilities of the Crihfields covered by the federal tax liens at issue here

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Lastly, to the United States of America to partially satisfy the federal tax

IT IS SO ORDERED.

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DATED this

day of

, 2019.

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ANDREW P. GORDON
UNITED STATES DISTRICT JUDGE
Dated: July 24, 2019.

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