Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_03-cv-01989/USCOURTS-caed-2_03-cv-01989-4/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 26:7401 IRS: Tax Liability

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IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Plaintiff,

v.

JOSEPH VERNI, et al.,

Defendants.

_____________________________/

CIV. S-03-1989-LKK-PAN-PS

FINAL JUDGMENT AND

ORDER OF JUDICIAL SALE

This matter was referred to the Honorable Peter A.

Nowinski, United States Magistrate Judge, pursuant to 28 U.S.C.

§§ 636, et seq., and Local Rule 72-302. On November 28, 2005,

Judge Nowinski recommended final judgment for plaintiff and an

order of judicial sale. No objections to the findings and

recommendation have been filed.

The court has reviewed the file and finds the findings

and recommendations to be supported by the record and by the

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magistrate judge's analysis. Accordingly, IT IS HEREBY ORDERED

that:

1. The Findings and Recommendations filed November 28,

2005, are adopted in full;

2. The Clerk of Court shall enter final judgment for

plaintiff; and 

3. The Internal Revenue Service (IRS) is authorized to

foreclose on the Rolling Hills property subject to the following

terms and conditions:

1. Joseph Verni and Juanita Smith, and any other persons

occupying the property shall vacate the property permanently

within thirty (30) days after entry of the Final Judgment and

Order of Judicial Sale, unless the United States agrees otherwise

in writing. Each person shall take with them their personal

property, but leave all improvements, buildings, fixtures, and

appurtenances.

 

2. If any person occupying the property fails or refuses to leave

and vacate the property within thirty days after entry of the

Final Judgment and Order of Judicial Sale, or within a later

departure time agreed to by the United States, the IRS, with or

without the assistance of the U.S. Marshal, is authorized and

directed to take all actions reasonably necessary to evict those

persons. If any person fails or refuses to remove his or her

personal property by the time specified, the personal property

remaining on the subject real property is deemed forfeited and

abandoned. The IRS is authorized to remove and dispose of such

personal property in whatever manner it sees fit, including sale

with the proceeds applied first to the expenses of sale and the 

remainder according to the priorities set forth in Paragraph

Fourteen. 

3. Pending foreclosure, Joseph Verni, Juanita Smith and Rich

Bellon shall take all reasonable steps necessary to preserve the

property (including all buildings, improvements, and fixtures) in

its current condition including, without limitation, maintaining

fire and casualty insurance policies on the property. They shall

not commit waste against the property or reduce its value or

marketability, nor shall they cause or permit anyone else to do

so. Defendants shall not record any instruments, publish any

notice, or take any other action that may directly or indirectly

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adversely affect the value of the property or deter potential

bidders from participating in the public auction.

4. The IRS shall have free access to the property when all

occupants have vacated it or upon expiration of the period within

which to vacate the property, whichever is earlier, and shall take

all actions necessary to preserve the property, including changing

or installing locks or other security devices until the deed is

delivered to the purchaser.

5. The date and time for the sale shall be announced by the IRS.

6. The sale of the property shall be held on the premises or at the

Butte County courthouse.

7. The sale shall be subject to all laws, ordinances, and

governmental regulations (including building and zoning

ordinances), affecting the premises, and easements and

restrictions of record, if any.

8. The sale shall be free and clear of the interests of Joseph

Verni, Juanita Smith, Rich Bellon and all other parties named in

this case. The sale shall be made without right of redemption.

9. Notice of the sale shall be published once a week for at least

four (4) consecutive weeks before the sale in at least one

newspaper regularly issued and of general circulation in Butte

County and by any other notice the IRS deems appropriate. The

notice shall contain a description of the property and the

essential terms and conditions of sale.

10. A reasonable minimum bid shall be determined by the United

States. If the minimum bid is not met or exceeded, the IRS may,

without further permission of this Court, hold a new public sale

and reduce the minimum bid.

11. The successful bidder shall be required to deposit with the

IRS at the time of sale a minimum of ten (10) percent of his or

her bid, with the deposit to be made by cashiers or certified

check payable to “United States Treasury.” All potential bidders

shall display to the IRS proof they are able to comply with this

requirement.

12. The balance of the purchase price for the property shall be

paid to the IRS by certified or cashier's check payable to the

“United States Treasury” within sixty (60) days after the date the

bid is accepted. If the bidder fails to fulfill this requirement,

the deposit shall be forfeited and applied to cover the expenses

of the sale, with any amount remaining to be applied to the

outstanding tax liability, and the property shall again be offered

for sale under the terms and conditions of this order. The United

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States may bid as a creditor against its judgment without tender

of cash.

13. The sale of the property shall be subject to confirmation by

this Court as required by E. D. Cal. L. R. A-570. Absent a

written objection filed within three days of sale, or the

purchaser’s default, the sale shall stand confirmed without any

action by the Court. On confirmation of the sale and receipt of

payment in full, the IRS shall execute and deliver a Certificate

of Sale and Deed conveying the property to the purchaser. On

confirmation of the sale, all interests in, liens against, or

claims to, the property that are held or asserted by the plaintiff

or the defendants in this action are discharged and extinguished.

14. After the sale is confirmed by this Court, the IRS shall

distribute the amount paid by the purchaser as follows:

a. First, to the IRS for the expenses of sale, including

any expenses incurred in securing or maintaining the

property pending sale and confirmation;

b. Second, to Butte County for all matured and unpaid real

property taxes;

c. Third, to Wells Fargo Home Mortgage for all amounts owed

under its assigned deed of trust;

d. Fourth, to the IRS to be applied on a pro rata basis

towards Joseph Verni’s federal tax liabilities, plus

penalties and interest, for tax years 1986, 1987, 1988, and

1996, and Juanita Smith’s federal tax liabilities, plus

penalties and interest, for tax years 1986 and 1988.

e. Fifth, the remainder, if any, to defendants Verni and

Smith on a pro rata basis.

DATED: March 24, 2006.

/s/Lawrence K. Karlton 

 UNITED STATES DISTRICT JUDGE

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