Hayes DBA Hayes Law Office v. Brown et al

Filing 38

ORDER granting 37 Motion for Default Judgment against Defendants Melinda Brown and William Wesley Scott Higgins. Signed by Judge Michael H. Watson on 3/30/17. (ew)

IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF OHIO
EASTERN DIVISION

WILLIAM C. HAYES DBA HAYES LAW
Case No. 2:I3-cv-01193-MHW-TPK

OFFICE,

Judge Michael H. Watson
Mag. Judge Terence P. Kemp

Plaintiff,
V.

MELINDA BROWN,

WILLIAM WESLEY SCOTT HIGGINS,
INTERNAL REVENUE SERVICE,
OHIO DEPARTMENT OF TAXATION,
OHIO ATTORNEY GENERAL, and
UNITED STATES OF AMERICA,
Defendants.

JUDGMENT

Upon the Clerk of the Court's entry of default against Defendants Melinda Brown and
William Wesley Scott Higgins (DocketNo. 34) for their failure to answer or otherwisedefend in
this action, and the Joint Motion For Default Judgment, the Court hereby orders that Defendants

Melinda Brown and William Wesley Scott Higgins shall not be entitled to any part of the
$7,433.17 which Plaintiff deposited with the Licking County Common Pleas Court registry. The
Court further orders that the $7,433.17 shall be distributed as described in the attached

Stipulation Regarding Priority of Liens and Distribution.
Dated:_
Michael H. Watson

U.S. District Court Judge

IN THE UNITED STATES DISTRICT COURT FOR THE

SOUTHERN DISTRICT OF OHIO
EASTERN DIVISION

WILLIAM C. HAYES DBA HAYES LAW

OFFICE,

Case No. 2:13-cv-01193-MHW-TPK

Plaintiff,

Judge Michael H. Watson
Mag. Judge Terence P. Kemp

V.

MELINDA BROWN,
WILLIAM WESLEY SCOTT HIGGINS,
INTERNAL REVENUE SERVICE,
OHIO DEPARTMENT OF TAXATION,
OHIO ATTORNEY GENERAL, and
UNITED STATES OF AMERICA,
Defendants.

STIPULATION REGARDING PRIORITY OF LIENS AND DISBURSEMENT

Plaintiff William C. Hayes d/b/a Hayes Law Office, Defendant Ohio Department of
Taxation, and Defendant United States of America (collectively, the "Moving Parties"), stipulate

and agree to the following:
I.

On October 29,2013, Plaintiff filed an interpleader complaint in Licking County

Common PleasCourtand paid into the registry of that Courtfunds in the amount of $7,433.17
("Funds") resulting from the liquidation of Defendant Higgins's 401(k) plan account which was
used to fund a settlement with Defendant Brown. Plaintiff represented Defendant Brown in the

litigation and the negotiation of the settlement. Plaintiff held back the Funds at issue because

upon information and belief, the administrator ofthe 401 (k) plan did not withhold sufficient
funds for Defendant Higgins's federal and state income tax liabilities associated with the account

liquidation, and it was uncertain, as between the Defendants, who was entitled to the Funds.

Plaintiff delivered two checks to a representative of Defendant Higgins, who was incarcerated at
the State Penitentiary at the time of distribution; (1) a check in the amount of $6,196.00 for
federal income taxes, and (2) a check in the amount of $1,237.17 for state income taxes. Neither

check was ever deposited or cashed. The Plaintiff requested that the Court determine the rights

of the Defendants to the Funds and otherwise relieve it from liability as to the Funds.
2.

On November 27,2013, the United States removed Plaintiffs action to the United

States District Court for the Southern District of Ohio.

3.

On January 3,2014, the United States filed its answer with this Court.

4.

On February 14,2014, the State of Ohio filed its answer with this Court.

5.

On February 17,2017, this Court entered default against Defendants Melinda

Brown and William Wesley Scott Higgins.
6.

On March 15,2017, the Moving Parties jointly moved for default judgment

against Defendants Melinda Brown and William Wesley Scott Higgins.
7.

The Ohio Department of Taxation has an interest in the Funds by virtue of an

assessment made against Defendant William Wesley Scott Higgins for unpaid Ohio income
taxes. The Ohio Department of Taxation has filed a certificate ofjudgment with the Muskingum
County Common Pleas Clerk of Court in case number 2013 TL 00027 on January 24,2013. The
certificate ofjudgment reflects assessed and unpaid Ohio income taxes.
8.

The United States has an interest in the Funds by virtue of an assessment made

against Defendant William Wesley Scott Higgins on July 19,2010, for unpaid federal income
taxes for tax year 2009.
9.
Brown.

Plaintiff incurred costs of $868.00 for service by publication upon Defendant

10.

The undersigned parties agree and stipulate to the following priority and

disbursement of the Funds:

a.

First, a disbursement to the United States of America in the amount of

$7,433.17. The disbursement to the United States shall be made payable to U.S.
Treasury, and shall be delivered to Tax FLU, Office of Review, U.S. Department of
Justice, P.O. Box 310, Washington, D.C. 20044-0310 (if payment is sent by U.S. Postal
Service) or Tax FLU, Office of Review, U.S. Department of Justice, 555 4th Street,

N.W., Room 6647, Washington, D.C. 20001 (ifpayment is sent by overnight delivery).
b.

No disbursement shall be made to the Ohio Department of Taxation.

c.

No disbursement shall be made to Plaintiff for costs incurred in serving

Defendant Brown by publication.

11.

Upon payment of the amounts set forth in Paragraph 10, above, Plaintiff will be

discharged from any and all further liability to any Defendants with respect to the Funds.

AGREED:

WILLIAM C. HAYES DBA HAYES LAW OFFICE

/?/ C. Daniel Haves (bv email permission)

C. DANIEL HAYES (OH 0073620)
195 E. Broad St.
P.O. Box 958

Pataskala, OH 43062
740-927-2927 (v)

740-927-3060 (f)
[e-mail]
Counsel for the Plaintiff

MIKE DEWINE,
ATTORNEY GENERAL OF OHIO

/s/Moran N. Nusbaum (by email permission)
Moran N. Nusbaum (OH 0085194)

Cook, Sladoje & Wittenberg Co., LPA
250 E. Broad St., Ste. 1725
Columbus, OH 43215
614-472-8300 (v)
614-221-5777 (0

[e-mail]
Counsel for the Defendant Ohio Department of Taxation

DAVID A. HUBBERT

Acting Assistant Attorney General
Tax Division, U.S. Department of Justice

/s/ Philip L Bednar
PHILIP LEONARD BEDNAR

Trial Attorney, Tax Division
U.S. Departmentof Justice
P.O. Box 55

Washington, D.C. 20044
202-307-6415 (v)
202-514-5238 (0

[e-mail]
WA State Bar No. 41304
Counsel for the Defendant United States of America