United States of America v. Douglas, et al

Filing 17

Judgment enforcing Liens and Order of Sale and Distribution of proceeds. See order for specifics. Signed by Judge David D. Dowd, Jr. on 1/23/2013. (M,De)

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF OHIO
UNITED STATES OF AMERICA,
Plaintiff,
v.
JOANNE E. DOUGLAS, ET AL
Defendants.

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Civil Action No. 4:12CV1675
Judge David D. Dowd, Jr.

JUDGMENT ENFORCING LIENS AND ORDER OF SALE
AND DISTRIBUTION OF PROCEEDS
The Court has for consideration the plaintiff United States’ Motion for a Default
Judgment Regarding Tax Liens, Foreclosure, Sale and Distribution of Proceeds, and having
duly considered the motion, and for good cause shown, it is hereby:
ORDERED that the plaintiff United States has valid and subsisting federal tax liens and a
judgment lien against all property and rights to property of defendant Joanne Douglas,
including her interest in the real property located at 14315 Ellett Road, Beloit, Ohio 44609
(the “Property”) and which is more particularly described as:
Situated in the Township of Smith, County of Mahoning and State of Ohio and
known as being part of the Northeast Quarter Section No. 36, Township 18, Range
5 and being part of the tract of land transferred to Michael and Pamela Douglas as
recorded official record volume 5507, Page 2120, Parcel 2 and further described as
follows to wit;
Beginning at a monument found at the intersection of the centerlines of Ellett Road
(C.R. 27) and Harrisburg-Westville Road (S.R. 62) and being the Southwest
Corner of the Southeast quarter of Section 36;
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Thence North 00" 04" 10" West, Along the centerline of said Ellett Road and along
the quarter section line, a Distance of 2655.36 feet to a 1 1/4" iron bar found at the
southwest corner of the northeast quarter of section 36 and further known as the
true place of beginning for the tract of land herein described;
Thence north 00" 00" 00" East, along the quarter section line and along the
centerline of said Ellett Road, a distance of 319.85 feet to a 1" steel spike set;
Thence North 90" 00" 00" East, along the line of J.E. Douglas Plat #1 Lot 1 (P.B.
81, PG 87), Now or formerly owned by M. & J. Conny (O.R.V. 957:322), passing
over a 5/8" iron bar set at 30.00 feet, a total distance of 240.00 feet to a 5/8" iron
bar set;
Thence North 00" 00" 00" East, along the line of said Lot 1, a distance of 125.00
feet to a ½" iron bar found;
Thence South 90" 00" 00" West, along the line of said lot 1, passing over a ½" iron
bar found at 210.00 feet, a total distance of 240.00 feet to a 1" steel spike set on the
quarter section line and in the centerline of aforesaid Ellett Road;
Thence North 00" 00" 00" East, along the quarter section line and along the
centerline of said Ellett Road, a distance of 171.73 feet to a 1" steel spike set;
Thence North 88" 59" 14" East, passing over a 5/8" iron bar set at 30.00 feet, a
total distance of 833.79 feet to a 5/8" iron bar set;
Thence South 02" 20" 27" West, a distance of 628.49 feet to a 5/8" iron bar set on
the quarter section line;
Thence South 89" 45" 46" West, Passing over a 5/8" iron bar found at 777.89 feet,
a total distance of 808.00 feet to the true place of beginning;
Containing 11.034 acres of land based on a field survey by Robert L. Akins this
10th day of March, 2006.
(10.695 Acres–Lot Area)
(0.339 Acres–Road R/W)
Prior deed reference: Official Record Volume 5507, Page 2120, Parcel 2.
Basis of Bearings: The Bearing of North 00" 00" 00" East, used for the quarter
section line and centerline of Ellett Road as recorded in Plat Book 61, Page 87.

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Subject to all legal highways and any easements or restrictions of record.
ORDERED FURTHER that the defendants State of Ohio Department of Taxation
and Ziegler, Metzger and Miller, LLP. are not entitled to any of the proceeds secured through
this action:
ORDERED FURTHER that the Property shall be sold under 28 U.S.C. §§ 2001 and
2002 and without the right of redemption, to satisfy the foregoing liens, as follows:
1. The Internal Revenue Service’s Property Appraisal and Liquidation Specialists
(“PALS”) is authorized to offer for public sale and to sell the Property.
2. The terms and conditions for the sale of the Property are as follows:
a. The sale of the Property shall be free and clear of all rights, titles, claims,
liens, and interests of all parties to this action, including without limitation, the plaintiff
United States of America, and the defendants Joanne Douglas, State of Ohio Department of
Taxation and Ziegler, Metzger and Miller, LLP.
b. The sale shall be subject to building lines, if established, all laws, ordinances,
and government regulations (including building and zoning ordinances) affecting the
Property, and easements, restrictions, and reservations of record, if any.
c. The sale shall be held either at the courthouse of the county or city in which
the Property is located or on the Property’s premises.
d. The PALS shall announce the date and time of the sale.
e. Notice of the sale shall be published once a week for at least four
consecutive weeks before the sale in at least one newspaper regularly issued and of general

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circulation in Mahoning County, and at the discretion of the PALS, by any other notice that
the PALS deems appropriate. The notice shall contain a description of the Property and shall
contain the terms and conditions of sale in this order of sale.
f. The PALS shall set and may adjust the minimum bid. If the minimum bid is
not met or exceeded, the PALS may, without further permission of this Court, and under the
terms and conditions in this order of sale, hold a new public sale, if necessary, and reduce the
minimum bid.
g. At the time of the sale, the successful bidder(s) shall deposit with the PALS,
by money order or by certified or cashier’s check payable to the Clerk of the United States
District Court for the Northern District of Ohio, a deposit in an amount between (5) and
twenty (20) percent of the minimum bid as specified by the PALS in the published Notice of
Sale. Before being permitted to bid at the sale, potential bidders shall display to the PALS
proof that they are able to comply with this requirement. No bids will be accepted from any
person(s) who have not presented proof that, if they are the successful bidders(s), they can
make the deposit required by this order of sale. The United States may bid as a creditor
against its judgment without any tender of cash.
h. The successful bidder(s) shall pay the balance of the purchase price for the
Property within forty-five (45) days following the date of the sale. The money order, certified
check, or cashier’s check payable to the United States District Court for the Northern District
of Ohio shall be given to PALS who will deposit the funds with the Clerk of this Court. If
the bidder fails to fulfill this requirement, the sale shall be treated as null and void, and the

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deposit shall be forfeited as damages and applied to the judgment for the federal tax liabilities
entered in this case. The Clerk shall distribute the forfeited deposit as directed by the PALS
by drawing a check made out to the “United States Treasury.” The Property shall be again
offered for sale under the terms and conditions of this order of sale, or, in the alternative, sold
to the second highest bidder. The successful bidder(s) at the new sale or second highest
bidder, as the case may be, shall receive the Property free and clear of all rights and claims of
the defaulting bidder(s).
i. The Clerk of the District is directed to accept the deposits and proceeds of
the sale and deposit them into the Court’s registry for distribution pursuant to further Order
of this Court.
j. The sale of the Property shall be subject to confirmation by this Court. On
confirmation of the sale, ownership and possession of the Property shall transfer to the
successful bidder(s). After the confirmation of the sale, the IRS shall execute and deliver a
deed under the authority of this Court conveying the Property to the purchaser. On
confirmation of the sale, all interests in, liens against, and titles and claims to, the Property
that is held or asserted by the parties to this action are discharged and extinguished.
k. The Property shall be offered for sale “as is” with all faults and without any
warranties either expressed or implied, and the sale shall be made without any right of
redemption.
l. When this Court confirms the sale, the Recording Official of Mahoning
County, Ohio, shall cause the transfer of the Property to be reflected upon that county’s

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register of title. The successful bidder at the sale shall pay, in addition to the amount of the
bid, any documentary stamps and Clerk’s registry fees as provided by law.
3. Until the sale of the Property is confirmed, Joanne Douglas shall take all reasonable
steps necessary to preserve the Property (including all buildings, improvements, fixtures and
appurtenances on the Property) in its current conditions including, without limitation,
maintaining a fire and casualty insurance policy and Joanne Douglas and all occupants of the
Property shall neither commit waste against the Property nor cause or permit anyone else to
do so. Defendant Douglas shall neither do anything that tends to reduce the value or
marketability of the Property nor cause or permit anyone else to do so. Defendant Douglas
shall not record any instruments, publish any notice, or take any other action (such as running
newspaper advertisements, positing signs, or making internet postings) that may directly or
indirectly tend to adversely affect the value of the Property or that may tend to deter or
discourage potential bidders from participating in the public auction, nor shall she cause or
permit anyone else to do so.
4. All persons occupying the Property shall vacate the Property permanently within 45
days of the date of this order of sale, each taking with them his or her personal property (but
leaving all improvements, buildings, fixtures, and appurtenances to the Property). If any
person fails or refuses to vacate the Property by the date specified in this order of sale, the
PALS is authorized to coordinate with the United States Marshal to take all actions that are
reasonably necessary to have those persons ejected. Any personal property remaining on the
Property 45 days after the date of this order of sale is deemed forfeited and abandoned, and

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the PALS is authorized to dispose of it in any manner they see fit, including sale, in which
case the proceeds from of the sale are to be applied first to the expenses of sale and the
balance to be paid into the Court for further distribution. Checks for the purchase of the
personal property shall be made out to the Clerk for the Northern District Court of Ohio and
the Clerk of the Court is directed to accept these checks and deposit them into the Court’s
registry for distribution pursuant to further Order of this Court.
5. No later than two business days after vacating the Property pursuant to the deadline
set forth in paragraph 4 above, Joanne Douglas shall notify counsel for the United States of a
forwarding address where she can be reached. Notification shall be made by contacting the
Department of Justice Tax Division’s paralegal at [phone].
6. Until the confirmation of the sale of the Property, the PALS is authorized to have
free access to the premises in order to take any and all actions necessary to preserve the
Property, including, but not limited to, retaining a locksmith or other person to change or
install locks or other security devices on any part of the Property.
7. After the Court confirms the sale of the Property, the sale proceeds deposited with
the Clerk of this Court should be applied to the following items, in the order specified:
a. First, to the United States Treasury for the expenses of the sale, including
any expenses incurred to secure or maintain the property pending sale and confirmation by
the Court;
b. Second to Mahoning County, or other local taxing authority, for real
property taxes and other local assessments due and owing;

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c. Third, the remaining proceeds shall be distributed to the plaintiff United
States of America for application to the liability then outstanding in connection with unpaid
federal tax liabilities of the defendant Joanne Douglas in the amount of $1,271,907.01 as of
August 12, 2010, plus all accrued statutory penalties, additions, and interest from the
foregoing date until fully paid.
d. Any further remaining sale proceeds shall be held in the Court’s registry
pending further order of this Court.
IT IS SO ORDERED, ADJUDGED AND DECREED:

s/David D. Dowd, Jr.
______________________
Judge David D. Dowd, Jr.
United States District Court
January 23
Date: _______________, 2013

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