United States of America v. Kraus

Filing 90

ORDER by Judge Benjamin H. Settle granting 68 Motion for Summary Judgment.(TG; cc mailed to Mr. Kraus)

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT TACOMA

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UNITED STATES OF AMERICA,
Plaintiff,
v.

CASE NO. C16-5449 BHS
ORDER GRANTING PLAINTIFF’S
MOTION FOR SUMMARY
JUDGMENT

DORAN R. KRAUS, et al,

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Defendants.

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This matter comes before the Court on Plaintiff the United States of America’s

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(the “Government”) motion for summary judgment. Dkt. 68. On January 31, 2018, the

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Government moved for summary judgment. Dkt. 68. Also on January 31, 2018,

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Defendant Doran R. Kraus (“Kraus”) filed a cross-motion for summary judgment, which

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he titled a “Dispositive Motion for Settlement.” Dkt. 69. On February 16, 2018, the

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Government responded to Kraus’s motion. Dkt. 71. On February 20, 2018, Kraus replied

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on his motion and responded to the Government’s motion. Dkts. 72, 73. On February 21,

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Defendant Leanne V. Lao (“Lao”) responded to the Government’s motion. Dkt. 74. On

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February 27, 2018, the Government replied to Lao’s response. Dkt. 78. On March 21,

ORDER - 1

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2018, Kraus filed a “revamped-updated” response to the Government’s motion. Dkt. 79.

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On March 26, 2018, the Government filed a notice of a reduction in the amount in tax

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assessments it seeks to reduce to judgment for the years 2001–2004. Dkt. 80.

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On April 3, 2018, the Court entered an order denying Kraus’s motion and granting

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in part the Government’s motion. Dkt. 81. The Court entered judgment in favor of the

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Government against Kraus in the amount of $184,651.40. Id. at 16. The Court found that

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the Government has valid and subsisting federal tax liens on all property and rights to

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property of Kraus, including the real property at 5901 16th Street Court NE, Tacoma,

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Washington 98422. Id. Also, the Court found that Lao has no independent right to any

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proceeds from the sale of the subject property that takes priority over liens preexisting the

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divorce. Id. The Court renoted the Government’s motion for further consideration on the

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singular issue of the effect of Lao’s innocent spouse relief on liens arising from interest

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or penalties assessed after Lao’s and Kraus’s divorce. Id. at 17.

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On April 16, 2018, the Government and Lao filed a stipulated motion agreeing

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that in the event the subject property is foreclosed and sold, “the United States may

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collect all of its outstanding federal tax liens against the entire value of the Subject

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Property, regardless of whether the liens preexisted the divorce between Doran Kraus and

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Ms. Lao, and regardless of whether the liens pertain to interest or penalties accruing after

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the divorce.” Dkt. 88 at 2. The Government and Lao also stipulated to a six-month stay of

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the execution on the order of sale, entered by the Court on April 17, 2018. Dkt. 89.

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ORDER - 2

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In light of Lao’s and the Government’s stipulation regarding the outstanding issue

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on the Government’s motion, the motion for summary judgment is GRANTED. The

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Clerk shall enter JUDGMENT in favor of the Government.

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IT IS SO ORDERED.

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Dated this 17th day of April, 2018.

A

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BENJAMIN H. SETTLE
United States District Judge

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ORDER - 3