Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-06103/USCOURTS-cand-3_06-cv-06103-1/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 26:7426 IRS: Wrongful Levy for Taxes

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Case No. C-06-6103 WHA 

Stip. for Deposit of Escrow Funds, For Dismissal of 

North American Title Company, and [Proposed] Order 

LAW OFFICES 

SIDEMAN & BANCROFT LLP

ONE EMBARCADERO CENTER, 8TH FLOOR

SAN FRANCISCO, CALIFORNIA 94111-3629

WENDY ABKIN (State Bar No. 121286) 

E-Mail: wabkin@sideman.com

EMILY J. KINGSTON (State Bar No. 184752) 

E-Mail: ekingston@sideman.com

SIDEMAN & BANCROFT LLP 

One Embarcadero Center, Eighth Floor 

San Francisco, California 94111 

Telephone: (415) 392-1960 

Facsimile: (415) 392-0827 

Attorneys for Krystal L. Smith 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION DIVISION 

KRYSTAL L. SMITH, Individually, and in 

her capacity as Trustee of the Smith Trust 

dated May 31, 2002, 

Plaintiff, 

v.

UNITED STATES OF AMERICA; DAVID L. 

LOPEZ-QUINTANA; and NORTH 

AMERICAN TITLE COMPANY, 

Defendants.

 CASE NO. C-06-6103 WHA 

STIPULATION FOR DEPOSIT OF 

ESCROW FUNDS TO UNITED STATES 

DISTRICT COURT FOR THE 

NORTHERN DISTRICT OF 

CALIFORNIA AND FOR DISMISSAL OF 

NORTH AMERICAN TITLE COMPANY 

FROM ACTION; and 

[Proposed] ORDER THEREON 

 IT IS HEREBY STIPULATED AND AGREED, by and between the Plaintiff, Krystal L. 

Smith, Individually and in her capacity as Trustee of the Smith Trust dated May 31, 2002 

(“Smith”), and the Defendants, the United States of America (“United States”), David L. LopezQuintana (“Quintana”), and North American Title Company (“North American”), by and through 

the signatures of their respective counsel as set forth below, and based on the facts as set forth in 

paragraphs 1 through 6 herein, as follows: 

 1. On about May 30, 2006, a parcel of real property located at 1620 Germano Way, 

Pleasanton, California 94566, APN # 950-0029-029, (hereinafter the “Property”) was sold to an 

Case 3:06-cv-06103-WHA Document 13 Filed 01/18/2007 Page 1 of 5 Case 3:06-cv-06103-WHA Document 14 Filed 01/19/07 Page 1 of 5
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Case No. C-06-6103 WHA 2 

Stip. for Deposit of Escrow Funds, for Dismissal of 

North American Title Company, and [Proposed] Order 

LAW OFFICES 

SIDEMAN & BANCROFT LLP

ONE EMBARCADERO CENTER, 8TH FLOOR

SAN FRANCISCO, CALIFORNIA 94111

unrelated third party. Prior to its sale, title to the Property had been held in the name of Smith. 

Also prior to its sale, on about December 13, 2004, a Notice of Federal Tax Lien had been filed 

against the Property for the unpaid Federal tax liabilities of Quintana.

2. To effectuate the sale of the Property free and clear of the Notice of Federal Tax 

lien, the parties entered into a written “Agreement for Substitution of Proceeds of Sale under 

I.R.C. Section 6325(b)(3),” (hereinafter, the “Agreement”). 

3. Pursuant to the Agreement, the Internal Revenue Service issued a Certificate of 

Discharge allowing the Property to be sold free and clear of the Notice of Federal Tax Lien and 

providing that the Lien would attach instead to the net sales proceeds to be generated from the sale 

of the Property in the same manner and with the same priority as it had attached to the Property. 

4. The Property was sold pursuant to the Agreement and Certificate of Discharge, and 

net sales proceeds from the sale totaling $380,886.98, were deposited into an interest bearing 

escrow account maintained by American. Since that date, North American has retained the net 

sales proceeds in its escrow account. 

5. Other than holding the net sales proceeds in its escrow account, North American 

claims no interest in and to the funds retained in its escrow account, except to that portion of the 

funds that will satisfy its fees and costs incurred in maintaining the account and in the course of 

this litigation. 

6. The parties hereby agree that North American shall deposit to the Clerk of the 

Court of the United States District Court for the Northern District of California, San Francisco 

Division, the net sales proceeds retained in its escrow account, including interest thereon, less fees 

and costs incurred by North American in maintaining the account and in the course of this 

litigation.

Case 3:06-cv-06103-WHA Document 13 Filed 01/18/2007 Page 2 of 5 Case 3:06-cv-06103-WHA Document 14 Filed 01/19/07 Page 2 of 5
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Case No. C-06-6103 WHA 3 

Stip. for Deposit of Escrow Funds, for Dismissal of 

North American Title Company, and [Proposed] Order 

LAW OFFICES 

SIDEMAN & BANCROFT LLP

ONE EMBARCADERO CENTER, 8TH FLOOR

SAN FRANCISCO, CALIFORNIA 94111

7. The parties further hereby agree that North American shall provide to the Court and 

the parties an accounting reflecting the interest accrued on the escrow account and the deductions 

for fees and costs incurred by North American in maintaining the account and in the course of this 

litigation.

8. The parties further hereby agree that after deposit of the net sales proceeds as set 

forth in paragraph 6, above, and after provision of the accounting, as set forth in paragraph 7, 

above, that the North American, should and shall be dismissed from this action and shall have no 

further obligations in the course of this litigation. 

9. The parties further hereby agree that, pursuant to 28 U.S.C. 2041, the Clerk of the 

United States District Court for the Northern District of California, San Francisco Division, shall 

deposit the net sales proceeds paid into the Court by North American with the Treasurer of the 

United States, or a designated depository, in the name and to the credit of the United States 

District Court for the Northern District of California, San Francisco Division, said deposit to 

continue until such time as this Court determines, or the parties stipulate to, the proper ownership 

and distribution of the net sales proceeds to the respective parties. 

/ / / 

/ / / 

/ / /

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Case No. C-06-6103 WHA 4 

Stip. for Deposit of Escrow Funds, for Dismissal of 

North American Title Company, and [Proposed] Order 

LAW OFFICES 

SIDEMAN & BANCROFT LLP

ONE EMBARCADERO CENTER, 8TH FLOOR

SAN FRANCISCO, CALIFORNIA 94111

 10. The parties further agree that the deposit of funds with the Court pursuant to this 

Stipulation does not serve to cut off any rights or claims the United States (Internal Revenue 

Service) or Quintana may have to the funds. The United States and Quintana specifically reserve

their right to claim that Smith’s filing of this action was untimely and that this Court has no 

jurisdiction to hear this matter, despite its possession of the substituted assets. 

IT IS SO STIPULATED AND AGREED. 

 SIDEMAN & BANCROFT LLP 

DATED: January 18, 2007 By: /s/ Wendy K. Abkin

 WENDY K. ABKIN 

 Attorneys for Krystal L. Smith 

 KEVIN V. RYAN 

 UNITED STATES ATTORNEY 

DATED: January 18, 2007 By: /s/ Cynthia Stier 

 CYNTHIA STIER 

 Assistant U.S. Attorney, Tax Division 

 Attorneys for the United States of America 

 SUGARMAN & CANNON 

DATED: January 18, 2007 By: /s/ Christopher Cannon

 CHRISTOPHER CANNON 

 Attorneys for David L. Lopez-Quintana 

 NORTH AMERICAN TITLE COMPANY 

DATED: January 18, 2007 By: /s/ Dennis S. Lucey

DENNIS S. LUCEY 

Claims Counsel 

Attorney for North American Title Company 

Case 3:06-cv-06103-WHA Document 13 Filed 01/18/2007 Page 4 of 5 Case 3:06-cv-06103-WHA Document 14 Filed 01/19/07 Page 4 of 5
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Case No. C-06-6103 WHA 5 

Stip. for Deposit of Escrow Funds, for Dismissal of 

North American Title Company, and [Proposed] Order 

LAW OFFICES 

SIDEMAN & BANCROFT LLP

ONE EMBARCADERO CENTER, 8TH FLOOR

SAN FRANCISCO, CALIFORNIA 94111

ORDER

PURSUANT TO THE STIPULATION OF THE PARTIES, as set forth above, 

IT IS HEREBY ORDERED, 

a. That Defendant North American Title Company shall deposit funds to the Clerk of 

the Court of the United States District Court for the Northern District of California, San Francisco 

Division, pursuant to paragraph 6 of the foregoing Stipulation and shall provide to the Court and 

the parties an accounting pursuant to paragraph 7 of the Stipulation, whereupon Defendant North 

American Title Company, shall be dismissed from this action and shall have no further obligations 

in the course of this litigation. 

b. That, pursuant to 28 U.S.C. 2041, the Clerk of the United States District Court for 

the Northern District of California, San Francisco Division, shall deposit the net sales proceeds 

paid into the Court by Defendant North American Title Company with the Treasurer of the United 

States, or a designated depository, in the name and to the credit of the United States District Court 

for the Northern District of California, San Francisco Division, said deposit to continue until such 

time as this Court determines, or the parties stipulate to, the proper ownership and distribution of 

the net sales proceeds to the respective parties. 

 c. That the deposit of funds with the Court will not cut off any rights or claims 

Defendants The United States of America (Internal Revenue Service) or David L. Lopez-Quintana 

may have to the funds, including the right to claim that Plaintiff’s filing of this action was 

untimely and that this Court has no jurisdiction to hear this matter, despite its possession of the 

substituted assets. 

Date: 

 THE HONORABLE WILLIAM H. ALSUP 

 United States District Judge 

ejk:rrc:KRSM.7439\259187_2.DOC 

Case 3:06-cv-06103-WHA Document 13 Filed 01/18/2007 Page 5 of 5

January 19, 2007 U

NITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IT IS SO ORDERED

Judge William Alsup

Case 3:06-cv-06103-WHA Document 14 Filed 01/19/07 Page 5 of 5