Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_06-cv-02528/USCOURTS-caed-2_06-cv-02528-3/pdf.json

Parties Involved:
Citifinancial Mortgage
Defendant
El Dorado County Tax Collector
Defendant
Ursula Filice
Defendant
Gerald W. Filice
Defendant
State of California Franchise Tax Board
Defendant
Transamerica Financial Services
Defendant
United States of America
Plaintiff

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28 STIPULATION AND PROPOSED ORDER -1-

McGREGOR W. SCOTT

United States Attorney

PAUL S. HAM

ERIN B. ASHWELL

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) 307-6432

Attorneys for the United States of America

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA

Plaintiff,

v.

GERALD W. FILICE; URSULA FILICE;

EL DORADO COUNTY TAX COLLECTOR;

CITIFINANCIAL MORTGAGE;

TRANSAMERICA FINANCIAL

SERVICES; AND STATE OF CALIFORNIA

FRANCHISE TAX BOARD;

Defendants.

Civil No. 2:06-CV-02528-WBS-DAD

STIPULATION AND [Proposed]

ORDER

The United States of America and defendants El Dorado County Tax Collector, (“El Dorado

County”) and State of California Franchise Tax Board (“FTB”), through their respective attorneys,

hereby agree and stipulate as follows:

1. On June 26, 1996, Gerald W. Filice and Ursula Filice (“the Filices”) entered into Deed of Trust with

Ford Consumer Finance Company, Inc. encumbering the property (“the subject property”) legally

described as follows:

Parcel 3, as shown on that certain map entitled “parcel map”, filed in

the office of the recorder of the county of El Dorado, State of California

 On March 18, 1974 in book 5 of parcel maps, at page 75

Case 2:06-cv-02528-WBS-DAD Document 29 Filed 11/26/07 Page 1 of 6
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Assessor’s parcel number 094-150-07.

2. The Deed of Trust was recorded with the County Recorder’s Office of El Dorado County, California

(“El Dorado County Recorder’s office”) on July 3, 1996.

3. Citifinancial now holds the beneficial interest in the Deed of Trust.

4. On November 13, 2006, the United States filed suit to reduce to judgment federal tax assessments

against the Filices for their unpaid federal income tax liabilities, plus penalties and interest, for 1993

through 1997 (“tax years at issue”) and to foreclose its tax liens on the subject property. The United

States’ tax liens for the tax years at issue attach to the subject property.

5. The County of El Dorado, California, holds a property tax lien against the subject property.

6. On the following dates, the FTB made tax assessments against the Filices for the following tax years,

creating state tax liens:

November 6, 1996 1995

May 5, 1998 1996

April 8, 2000 1998

March 29, 2002 1999

January 3, 2003 2000

May 23, 2003 2001

May 7, 2004 2002

May 27, 2005 2003

June 30, 2006 2004

7. On the following dates a delegate of the Secretary of Treasury made federal income tax assessments

against the Filices creating federal tax liens:

November 25, 1996 1995

April 13, 1998 1995

November 9, 1998 1993

December 14, 1998 1994

December 28, 1998 1996 & 1997

8. On July 28, 1999, the FTB recorded Notices of State Tax lien against the Filices for tax years 1995

and 1996 with the El Dorado County Recorder’s office.

9. On or about September 27, 1999, a delegate of the Secretary of Treasury recorded a Notice of

Federal Tax Lien securing the Filices’ unpaid tax debts for the tax years at issue with the El Dorado

County Recorder’s office.

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10. On June 15, 2000, the FTB recorded a Notice of State Tax lien against the Filices for tax year 1998

with the El Dorado County Recorder’s office.

11. On June 7, 2005, the FTB recorded a Notice of State Tax lien against the Filices for tax years 1999

through 2002 with the El Dorado County Recorder’s office.

12. On October 4, 2005, the FTB recorded a Notice of State Tax lien against the Filices for tax year

2003 with the El Dorado County Recorder’s office. 

13. On October 26, 2006, the FTB recorded a Notice of State Tax lien against the Filices for tax year

2004 with the El Dorado County Recorder’s office.

14. The United States, El Dorado County, and the FTB agree as follows:

a. El Dorado County’s interest under its tax liens is senior to and has priority over the United States’

tax liens and the FTB’s tax liens against the subject property;

b. Citifinancial’s interest under the First Deed of Trust is senior to and has priority over the United

States’ tax liens and the FTB’s tax liens against the subject property;

c. the FTB’s interest in its tax lien for the tax year 1995 is senior to and has priority over the United

States’ tax liens and the remainder of the FTB’s tax liens against the subject property;

d. the United States’ interest in the tax lien that arose on November 26, 1996 for the tax year 1995,

is senior to and has priority over the remainder of the FTB’s tax liens against the subject

property;

e. the FTB’s interest in its tax lien for the tax year 1996 is senior to and has priority over the

remainder of the United States’ tax liens;

f. the United States’ interest in the tax lien that arose on April 13, 1998 for the tax year 1995, and

the United States’ interest in its tax lien for the tax years 1993, 1994, 1996 and 1997, is senior to

and has priority over the remainder of the FTB’s tax liens against the subject property.

15. Therefore, the United States, El Dorado County, 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

following the priority of interests established in the preceding paragraph. No proceeds of the sale

shall be distributed to a given interest in the subject property until any senior interests listed herein

Case 2:06-cv-02528-WBS-DAD Document 29 Filed 11/26/07 Page 3 of 6
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are fully satisfied and the United States’ costs and expenses of the sale are satisfied. 

16. If the subject property is sold through the foreclosure of the United States’ tax liens in this action or

if this action is dismissed, the United States shall either obtain an order expunging the Notice of Lis

Pendens recorded with the El Dorado County Recorder’s Office on December 5, 2006, or record a

Notice of Withdrawal of said Notice of Lis Pendens.

17. The United States, the FTB and El Dorado County agree to bear their respective costs, including any

possible attorney's fees or other expenses of this litigation as to each other. Citifinancial is hereby

dismissed from this action. In consideration of the Stipulation herein the parties request that the

FTB and El Dorado County not be required to attend or participate in any future conferences,

meetings of counsel, or court hearings. 

Respectfully submitted,

McGREGOR W. SCOTT

United States Attorney

Dated: November 21, 2007 /s/-Erin B. Ashwell 

ERIN B. ASHWELL

Trial Attorney, Tax Division

U.S. Department of Justice

Attorneys for the United States of America

Dated: November 19, 2007 /s/-Jeffrey A. Rich 

JEFFREY A. RICH

Deputy Attorney General

California Department of Justice, Office of the

Attorney General

Attorney for the State of California Franchise Tax 

Board

Dated: November 20, 2007 /s/-Michael J. Ciccozzi 

MICHAEL J. CICCOZZI

Deputy County Counsel

Attorney for El Dorado County Tax Collector

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IT IS SO ORDERED.

Dated: November 21, 2007

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CERTIFICATE OF SERVICE

I, Erin B. Ashwell, declare that service of the foregoing Stipulation and Proposed Order has been

made this 21st day of November of 2007 by placing a copy thereof in the United States Mail in a postageprepaid envelope addressed to:

Gerald W. Filice 

Filice Law Offices

195 Cadillac Dr

Sacramento, CA 95825

Michael J. Ciccozzi 

El Dorado County 

County Government Center 

330 Fair Lane 

Placerville, CA 95667 

Jeffrey A. Rich 

Office of the Attorney General 

1300 I Street 

P.O. Box 944255 

Sacramento, CA 94244-2550 

Michael H. Chang 

Wolfe & Wyman LLP

5 Park Plaza, Suite 1100 

Irvine, CA 92614-5979 

 /s/-Erin B. Ashwell 

ERIN B. ASHWELL

Trial Attorney, Tax Division

U.S. Department of Justice

Case 2:06-cv-02528-WBS-DAD Document 29 Filed 11/26/07 Page 6 of 6