Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_10-cv-01055/USCOURTS-caed-1_10-cv-01055-7/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 28:2410 Quiet Title

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BENJAMIN B. WAGNER

United States Attorney

YOSHINORI H. T. HIMEL #66194

Assistant U. S. Attorney

501 I Street, Suite 10-100

Sacramento, California 95814

Telephone: (916) 554-2760

Fax: (916) 554-2900

email: yoshinori.himel@usdoj.gov

BORIS KUKSO

U.S. Department of Justice

P.O. Box 683

Washington DC 20044

Telephone: (202) 353-1857

Fax: (202) 307-0054

email: boris.kukso@usdoj.gov

Attorneys for the UNITED STATES OF AMERICA,

Defendant and Third-Party Plaintiff

IN THE UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF CALIFORNIA

BEDROCK FINANCIAL, INC., a California

Corporation,

Plaintiff,

v.

UNITED STATES OF AMERICA,

Defendant and Third-Party Plaintiff,

v.

FIRST AMERICAN TITLE COMPANY and

FIRST AMERICAN TITLE INSURANCE

COMPANY, California Corporations,

Third-Party Defendants.

1:10-cv-1055-MJS

(Consolidated action)

STIPULATION AND ORDER

AMENDING COMPLAINTS

The parties to this consolidated action stipulate to narrow the allegations or claims in

their respective complaints filed as Clerk's Record number ("CR") 1 in consolidated file

number 1:10-cv-2326, and CR 21 and CR 56 in file number 1:10-cv-1055, subject to the

approval of Judge Seng as provided for herein, as follows:

STIPULATION AND ORDER AMENDING COMPLAINTS Page 1

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1. Bedrock Financial Inc. withdraws the allegations and prayers in the complaint on

file seeking an equitable lien in the sum of $202,832.21, plus interest. Rather than seeking

said sum, Bedrock seeks an equitable lien and foreclosure thereupon only in the amount of

secured debt existing under the Robert K. Lowe Deed of Trust, and senior to the tax lien at

issue, paid off by Bedrock Financial, Inc., during the refinance in question, to wit,

$171,106.85.

2. Bedrock Financial Inc.’s complaint is deemed to be AMENDED to conform to

paragraph 1 hereof.

3. Although the United States' Amended Counterclaim filed December 16, 2011,

CR 56, assumed that the foreclosure company in the 2009 trustee sale followed the defective

instructions in First American's 2009 trustee sale guarantee for notifying the IRS of the trustee

sale, more-recently-found evidence tends to show that the foreclosure company properly

notified the IRS of the 2009 trustee sale and therefore wiped out a group of federal

employment tax liens on the property. Accordingly, the United States withdraws the

following allegations and exhibits, relating to the employment tax liens, in CR 56:

(a) Paragraph 9, second sentence, reading "Tax Debtor Jose M. Fuentes is

delinquent on his federal employment taxes for various periods ending during

2005, 2006, 2007 and 2008."

(b) Paragraph 10, final sentence, reading "During 2006, 2007 and 2008, on the

particular dates listed in Exhibits 2 and 3 hereto, a duly authorized delegate of

the Secretary of the Treasury made timely assessments against the Tax Debtors

for federal employment taxes, penalties, interest, and other statutory additions

for periods ending during 2005, 2006, 2007 and 2008."

(c) Paragraph 14, reading "The United States later recorded other Notices of

Federal Tax Lien in the Official Records of Merced County against all property

of tax debtor Jose M. Fuentes. Exhibits 2 and 3 hereto are copies of two such

Notices of Federal Tax Lien," and Amended Counterclaim Exhibits 2 and 3

(notices of federal employment tax liens).

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(d) Paragraph 29, reading "At no time during the 2009 nonjudicial foreclosure was

any notice given to the IRS. In particular, at no time during the 2009

nonjudicial foreclosure was any notice given to the IRS conforming to the

procedures established under I.R.C. § 7425."

(e) Paragraph 40, the phrase "and employment tax."

(f) Paragraph 44, phrase "and on the other dates in 2006, 2007 and 2008 listed in

Exhibit 2 and 3."

(g) Paragraph 45, second sentence, reading "On March 26, 2008, and November 19,

2008, the IRS recorded further Notices of Federal Tax Lien against Jose Fuentes

with respect to his unpaid federal employment tax liabilities and federal tax

penalties for tax periods ending in 2005, 2006, 2007 and 2008, with the Merced

County Recorder."

4. The United States' Amended Counterclaim is deemed to be AMENDED as specified

in Paragraph 3 hereof.

5. Correcting a typographical error and conforming an allegation in another pleading to

the withdrawal of allegations in paragraph 3, above, the United States withdraws the

following allegations in its Amended Third-Party Complaint filed October 7, 2010, Clerk's

Record number 21:

(a) The year "2008" in Paragraph 35, and substitutes therefor the year 2009.

(b) Paragraph 35, final sentence, reading "Again, the transaction was not disclosed

to the IRS."

6. The United States' Amended Third-Party Complaint is deemed to be AMENDED as

specified in Paragraph 5 hereof.

7. The characterizations and recitations in paragraphs 1, 3 and 5 are made solely by the

party that filed the pleading being amended. Neither party expresses any concurrence in the

other party's characterizations or recitations.

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Dated: July 1, 2012 LAW OFFICES OF 

MICHAEL J. LAMPE

By: /s/ Matthew D. Owdom 

MICHAEL J. LAMPE

MICHAEL P. SMITH

MATTHEW D. OWDOM

Dated: June 21, 2012 BENJAMIN B. WAGNER

United States Attorney

BORIS KUKSO

Trial Attorney, Tax Division, DOJ

By: /s/ YHimel 

YOSHINORI H. T. HIMEL

Assistant U. S. Attorney

ORDER

Good cause appearing, the foregoing Stipulation to amend pleadings is

approved insofar as the Court will allow the proposed amendments to be made and

the parties shall proceed to act on and with regard to the pleadings as if the proposed

amendments had been completed. However, no such amended pleading shall be

served or presented to this Court or elsewhere until the parties have complied with

that portion of Local Rule 220 which provides:

“... every pleading to which an amendment or supplement is permitted as a matter of

right or has been allowed by court order shall be retyped and filed so that it is

complete in itself without reference to the prior or superseded pleading.”

Additionally, the parties are Ordered to file amended pleadings in accordance with

 the said Local rule within 20 days from the date of this Order.

IT IS SO ORDERED.

Dated: July 5, 2012 /s/Michael J. Seng 

ci4d6 UNITED STATES MAGISTRATE JUDGE

STIPULATION AND ORDER AMENDING COMPLAINTS Page 4

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