Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_01-cv-02301/USCOURTS-caed-2_01-cv-02301-2/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 26:7403 Suit to Enforce Federal Tax Lien

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28 STIPULATION -1- 1533341.1 

McGREGOR W. SCOTT

United States Attorney

PAUL S. HAM

JUSTIN S. KIM

Trial Attorneys, Tax Division

United States Department of Justice

P.O. Box 683, Ben Franklin Station

Washington, DC 20044-0683

Telephone: (202) 307-6421

Telephone: (202) 307-0977

Facsimile: (202) 307-0054

E-mail: paul.s.ham@usdoj.gov

E-mail: justin.s.kim@usdoj.gov

Attorneys for the United States of America

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

 Plaintiff,

 v.

J. LEONARD PADILLA, et al.,

 Defendants.

Civil No. 2:01-cv-2301-DFL-GGH

FIRST AMENDED STIPULATION

BETWEEN THE UNITED STATES

AND THE STATE OF CALIFORNIA

FRANCHISE TAX BOARD, and

[Proposed] ORDER

 Plaintiff United States of America and defendant State of California Franchise Tax Board

(“FTB”), through their respective attorneys, hereby agree and stipulate as follows:

1. The United States has made assessments against defendant J. Leonard Padilla (“Padilla”)

for outstanding federal income (Form 1040), plus penalties and interest, for the 1986-1998 and 1992-

1999 tax years (“tax years at issue). This Court, in a separate but related action, entered judgment against

Padilla for the tax periods at issue in the amount of $2,158,760.41 plus accrued interest and penalties

since February 29, 2004. United States v. J. Leonard Padilla, et. al., Civ No. 2:01-cv-2300 DFL GGH.

2. The FTB has made assessments against defendant Padilla for outstanding state income

taxes for the 1988, 1990, 1993, 1994, 1995, and 1996 tax years; assessed on March 23, 1991; October 26,

Case 2:01-cv-02301-JAM-GGH Document 173 Filed 02/27/06 Page 1 of 4
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28 STIPULATION -2- 1533341.1 

1994; December 16, 1996; January 26, 1996; May 28, 1997; and on October 31, 1997, respectively.

3. The United States’ and FTB’s tax liens, both arising from the assessments described in

paragraphs 1 & 2 above, attach to real property particularly described as follows (hereinafter, “Natomas

property”):

LOT 92 AND THE NORTH ONE-HALF OF LOT 91, AS SHOWN ON THE “PLAT OF NATOMAS

CENTRAL SUBDIVISION,” RECORDED IN BOOK 16 OF MAPS, MAP NO. 3, RECORDER OF

SAID COUNTY.

EXCEPTING THEREFROM THE FOLLOWING AS DESCRIBED AS FOLLOWS:

BEGINNING AT THE BOLT SET IN A CONCRETE MONUMENT MARKING THE CORNER

COMMON SECTIONS 32, 33, 5 AND 4, TOWNSHIP 9 AND 10 NORTH, RANGE 4 EAST, M.B.M.,

AND ALSO MARKING THE NORTHWEST CORNER OF SAID LOT 92 (FROM WHICH

MONUMENT THE 2-1/2 INCH IRON PIPE IN A CONCRETE MONUMENT MARKING THE

CORNER COMMON TO SECTIONS 33, 34, 4 AND 3, TOWNSHIP 9 AND 10 NORTH, RANGE 4

EAST, M.B.M., BEARS NORTH 89 DEGREES 39 FEET 26 INCHES EAST 5185.64 FEET); THENCE

FROM SAID POINT OF BEGINNING ALONG THE WESTERLY LINE OF SAID LOTS 92 AND 91

SOUTH 00 DEGREES 25 FEET 8 INCHES EAST 953.18 FEET; THENCE LEAVING SAID

WESTERLY LINE NORTH 89 DEGREES 45 FEET O INCHES EAST 16.75 FEET; THENCE NORTH

7 DEGREES 44 FEET 11 INCHES EAST 100.98 FEET; THENCE NORTH 67 DEGREES 8 FEET 44

INCHES EAST 52 FEET; THENCE NORTH 89 DEGREES 46 FEET O INCHES EAST 78 FEET;

THENCE ALONG A CURVE TO THE LEFT WITH A RADIUS OF 230 FEET, THROUGH AN

ANGLE OF 90 DEGREES 0 FEET 0 INCHES AN ARC LENGTH OF 361.28 FEET (THE CHORD OF

WHICH CURVE BEARS NORTH 44 DEGREES 46 FEET 0 INCHES EAST 325.27 FEET); THENCE

NORTH 0 DEGREES 14 FEET 0 INCHES WEST 399 FEET; THENCE ALONG A CURVE TO THE

RIGHT WITH A RADIUS OF 170 FEET, THROUGH AN ANGLE OF 90 DEGREES 0 FEET 0

INCHES AN ARC LENGTH OF 267.04 FEET (THE CHORD OF WHICH CURVE BEARS NORTH

44 DEGREES 46 FEET 0 INCHES EAST 240.42 FEET TO A POINT DISTANT SOUTH 0 DEGREES

14 FEET 0 INCHES EAST 181 FEET FROM ENGINEER’S STATION “C” 334-00.00 OF THE

DEPARTMENT OF PUBLIC WORKS’ 1961 SURVEY FROM EL CENTRO BOULEVARD TO

SACRAMENTO RIVER NEAR ELKHORN, STATE HIGHWAY III-SAC-236-C (NOW 03-SAC-5);

THENCE NORTH 89 DEGREES 46 FEET 0 INCHES EAST 1,100.74 FEET; THENCE FROM A

TANGENT THAT BEARS NORTH 89 DEGREES 40 FEET 59 INCHES EAST ALONG A CURVE

TO THE RIGHT WITH A RADIUS OF 2,370 FEET, THROUGH AN ANGLE OF 13 DEGREES 48

FEET 12 INCHES, AN ARC LENGTH OF 570.97 FEET (THE CHORD OF WHICH CURVE BEARS

SOUTH 83 DEGREES 24 FEET 55 INCHES EAST 569.59 FEET) TO A POINT IN THE EASTERLY

LINE OF SAID LOT 92; THENCE ALONG SAID EASTERLY LINE NORTH 0 DEGREES 32 FEET

57 INCHES WEST 106.05 FEET TO THE NORTHEAST CORNER OF SAID LOT 92; THENCE

ALONG THE NORTH LINE OF SAID LOT 92, SOUTH 89 DEGREES 39 FEET 26 INCHES WEST

2,225.56 FEET TO THE SAID POINT OF BEGINNING OF THE LANDS HEREIN DESCRIBED, AS

CONVEYED TO THE STATE OF CALIFORNIA BY DEEDS RECORDED SEPTEMBER 20, 1965,

IN BOOK 5331, PAGE 124 OF OFFICIAL RECORDS.

APN: 225-0030-023

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28 STIPULATION -3- 1533341.1 

4. The United States and the FTB agree that their relative priorities with respect to their tax

liens, described in paragraphs 1through 3 above, against the Natomas property are as follows (by tax

year):

Claim Holder Relevant Tax Period

FTB 1988

United States 1986, 1987, & 1988

FTB 1990

United States 1992 & 1993

FTB 1994

United States 1994

FTB 1993 & 1995

United States 1995

FTB 1996

United States 1996, 1997, 1998, & 1999

5. Therefore, the United States and the FTB agree that the proceeds generated from any

judicial or voluntary sale of the subject property as related to this action, shall be distributed between the

United States and the FTB in the relative order of priority of their tax liens as described in paragraph 4,

above, for the stated unpaid amount of the liens, plus any associated penalties and interest. 

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28 STIPULATION -4- 1533341.1 

6. The United States and the FTB are to bear their respective costs, including any possible

attorney's fees or other expenses of this litigation. The FTB is hereby dismissed from this action. 

Dated this 23rd day of February, 2006.

MCGREGOR W. SCOTT

United States Attorney

 /s/ - Paul Ham 

PAUL S. HAM

Trial Attorney, Tax Division

U.S. Department of Justice

Post Office Box 683, Ben Franklin Station

Washington, D.C. 20044

Telephone: (202) 307-6421

Facsimile: (202) 307-0054

(Attorneys for the United States)

Dated this 15 day of February, 2006. th

BILL LOCKYER

Attorney General of the State of California

 /s/ - Michael Cornez 

MICHAEL CORNEZ

Deputy Attorney General

1300 I Street, Suite 125

P.O. Box 944255

Sacramento, CA 94244-2550

Telephone: (916) 327-0305

Facsimile: (916) 327-2247

(Attorneys for the State of California, 

Franchise Tax Board)

IT IS SO ORDERED.

Dated: 2/24/2006

DAVID F. LEVI

United States District Judge

Case 2:01-cv-02301-JAM-GGH Document 173 Filed 02/27/06 Page 4 of 4