The opinion of the court was delivered by: Hon. John F. Walter, United States District Judge
Judgment Foreclosing Federal Tax Liens on Real Property
Based on the Stipulation to Foreclose Federal Tax Liens on Real Property between plaintiff, United States of America ("United States," "Internal Revenue Service," "IRS" or "plaintiff"), and defendants, Hosea Summerville, individually and dba Victory Transportation Co aka Victory Transportation Services Inc. aka Victory Transportation Inc. ("Hosea Summerville"), Orange Credit Services ("OCS"), and Chase Home Finance, as successor in interest or assignee of Regions Bank, dba Regions Mortgage ("Chase"), collectively "defendants,"
IT IS ORDERED, ADJUDGED, AND DECREED that:
1. On March 19, 2008, the United States filed its Complaint to Reduce Federal Tax Assessments to Judgment, and to Foreclose Federal Tax Liens on Real Property ("the original Complaint").
2. On July 22, 2009, the United States of America and defendants filed a stipulation to reduce tax assessments to judgment and foreclose on real property (document number 39). Upon that stipulation, on July 23, 2009, the Court entered a judgment reducing tax assessments to judgment and foreclosing on real property which provided as follows:
a. The first cause of action, to reduce tax assessments to judgment, was resolved in favor of the United States by agreement that the assessed amounts, interest, penalties, and accruals for each of the tax periods at issue in this case, calculated to May 31, 2009, totaling $329,403.54, may be reduced to judgment. It was also provided that interest and penalties accrued since that date.
b. As to the second cause of action, to foreclose on federal tax liens against real property of Hosea Summerville located in Culver City, California, (hereinafter "the subject property") the United States had the right to foreclose on its liens, by agreement to the order of priority of interest with respect to the proceeds of the sale amongst the parties, and that defendant Hosea Summerville would be permitted to attempt private sale under certain conditions prior to a foreclosure sale by the United States.
c. Defendant Victory Transportation Services Inc. aka Victory Transportation Services was also a party to the stipulation and disclaimed any interest in the subject property. As to all remaining named defendants, disclaimers of their interest had been filed or default judgment was entered.
d. Chase reserved its right to non-judicial foreclosure of the subject property or default under the Deed of Trust dated May 8, 1980.
3. On January 15, 2010, the parties filed a stipulation to vacate judgment to foreclose on real property and for leave to amend complaint pursuant to Fed. R. Civ. P. 15(a)(2). Based upon that stipulation, by an order dated January 19, 2010, at document no. 43, the Court vacated its judgment as to the second cause of action, to foreclose on federal tax liens, in order to allow the United States to file an amended complaint adding the Employment Development Department ("EDD")and Green Valley Condominiums Owners Association ("Green Valley COA") so the Court could adjudicate their potential interests in the subject property. The judgment remained effective as to the first cause of action, to reduce federal tax assessments to judgment. Furthermore, the order provided that the parties remained bound by the July 22, 2009, stipulation with the exception of paragraphs 13 through 19 in the second cause of action, to foreclose, which provided that the Court could issue an order of foreclosure and for certain conditions of private sale of the subject property,*fn1 and provided that the parties against whom default judgment was entered, or who had filed disclaimers, would remain subject to those dispositions.
4. On January 28, 2010, the United States filed the First Amended Complaint to Reduce Tax Assessments to Judgment, And Foreclose on Federal Tax Liens on Real Property, document no. 45, naming the EDD and Green Valley COA as parties.
5. On January 28, 2010, and February 17, 2010, disclaimers of interest to the complaint and amended complaint were filed for the EDD and Green Valley COA, respectively. Accordingly, the United States, Hosea Summerville, Chase, and OCS are the only remaining parties in this case.
6. By this Judgment, the Court resolves the second cause of action in this case, the first cause of action being adjudicated by the July 23, 2009, judgment of this Court, leaving no remaining causes of action to be adjudicated.
SECOND CAUSE OF ACTION: FORECLOSE FEDERAL TAX LIENS AGAINST REAL PROPERTY (Between Plaintiff and All Defendants)
7. The second cause of action in the Complaint (and First Amended Complaint, which does not differ except for the addition of two parties, and will not be referred to separately herein) seeks to foreclose the federal tax liens against the real property owned by Hosea Summerville, the subject property, located in Culver City, California, 90230, legally described as follows:
PARCEL 1: A CONDOMINIUM COMPRISED OF:
(A) AN UNDIVIDED 1/97TH INTEREST IN AND TO LOT 1 OF TRACT NO. 36819 IN THE CITY OF CULVER CITY, AS PER MAP FILED IN BOOK 926, PAGES 49 TO 50 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPT THEREFROM UNITS 1 TO 97 INCLUSIVE AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN FOR SAID LOT 1, RECORDED FEBRUARY 29, 1980 AS ...