Document: 329 U.S. 362 67 S.Ct. 340 91 L.Ed. 348 PEOPLE OF STATE ILLINOIS ex rel. GORDON, Director of Labor,v.CAMPBELL, Collector Internal Revenue. No. 35. Reargued Nov. 19, 1946. Decided Dec. 23, [Syllabus from pages 362-364 intentionally omitted] Mr.Albert E. Hallett, Chicago, Ill., for petitioner. Mr. J. Louis Monarch, Washington, D.C., respondent. Justice RUTLEDGE delivered the opinion Court. 1 This case was companion to People State Illinois Gordon v. United States, 328 8, 66 841, decided last term, but brings settlement other problems raised by a conflict claims between States and Illinois. The concerns whether one or claimant is entitled priority payment assets common debtor. Supreme Court dealt with both cases in single opinion. 391 Ill. 29, 62 N.E.2d 537. Certiorari granted each. 327 771, 683; 772, 683. On same day that supra, this restored docket assigned reargument before full bench, Campbell, 957, because presence questions not determined decision. 2 controversy arose on June 1942, when Labor brought suit Circuit Cook County, Illinois, enforce against Chicago Waste Textile Company statutory lien unemployment compensation contributions due state. Associated Agencies, Inc.,1 creditor Company. In his complaint alleged Agencies had obtained judgment its debtor Municipal execution issued 3, interest subordinate sought be foreclosed. This, 'for reason upon said long after notice recorded Recorder Deeds.'2 further information belief insolvent 'the personal property subject herein being foreclosed, scant secu ity debt * unless receiver appointed all property, pending complete hearing issues herein, plaintiff will suffer financial loss wasted.' 3 Granting immediate relief requested, enjoined creditors interfering company, judicial action3 otherwise, also Company.' 4 Subsequently respondent, Revenue First District filed behalf amounting $1,954.07 plus interest. Of amount, $522.91 federal insurance contribution taxes $1,431.16 taxes. taxes, $229.91 represented employees' see Helvering Davis, 301 619, 57 904, 81 1307, 109 A.L.R. 1319, collected employer under withholding provisions. Code §§ 1400, 1401, 26 U.S.C.A. Int.Rev.Code, 1401. an intervening petition, alleging asking allowed as immediately costs administration creditors. answered, denying were over 5 realized $677.81 sale debtor's amount deposited clerk A held, court ordered ninety per cent funds deposit given ten States. appealed Appellate District. motion appellee, cause transferred jurisdictional grounds. 6 state held claim taxes.4 Whether it correct award issue we now have decide. 7 circumstances which called into application Rev.Stat. § 3466, 31 U.S.C. 191, Title 8 Social Security Act, 49 Stat. 620, 636, 42 1001 et seq., 9 at page 639, 1101 Unemployment Compensation Act.5 That decision controlling, course, feature case, although claimed arise 1939 am ndments rather than, original act itself. Compare 801, 802, 804, 807(c) 1001, 1002, 1004, 1007(c), 1410, 1430 Code, 53 175 amended 1381, 1430. But urges 3466 does apply facts case. argument, well another, so specific perfected defeat priority, if any, must met can affirmed authority supra. provides: 'Whenever any person indebted insolvent, whenever estate deceased debtor, hands executors administrators, insufficient pay debts deceased, shall first satisfied; established extend having sufficient debts, makes voluntary assignment thereof, effects absconding, concealed, absent are attached process law, bankruptcy committed.' 10 fifth bankruptcy, Government relies operation, consists person's6 having, 11 '(5) while unable they mature, procured, permitted, suffered voluntarily involuntarily appointment trustee take charge property.' 52 844, 21, sub. a, a. 12 contends, first, instance within meaning provision and, second, shown record insolvent. 13 has noted view been expressed satisfy receivership general, contrasted incidental enforcement lien.' Duparquet Huot & Moneuse Co. Evans, 297 216, 224, 56 412, 416, 80 591.7 It correctness view, Emil Hanley, 318 515, 521, note 5, 63 687, 690, 954, nor need do now. For, though secured creditor, Texas, 314 480, 483, 484, 350, (351), 352, 86 356, 'any limitations operation (with) might otherwise flowed circumstance removed subsequent character proceeding.' placed control Company, liquidated. At least party than instituted proceeding, namely, intervene heard. 'We think realities require us treat proceeding general equity scope 3466.' 14 Moreover, questionable fact insolvency properly contestable allegations complaint, included insolvency, admitted answer Government's petition Although ordinarily doctrine estoppel part precludes inconsistent positions proceedings applied states,8 present litigation position creditor. 15 would seem therefore these should estopped contest insolvency. event demonstrates time receiver, liquidated there enough two contesting bar. 16 Thus, committed consequence benefit 3466. We turn argument specificity defeated priority. II 17 incorporated 1797, 515.9 See discussion Price 269 492, 500, 501, 46 180, 181, 70 373. Yet never overcome fully lien. Rogee, Differences Priority Bankruptcy Equity Receiverships (1929) 41 Harv.L.Rev. 251, 267-270. question, however, reserved many times express terms. Conard Atlantic Insurance Co., Pet. 386, 442, 189; Brent Bank 596, 611, 612, 547; Spokane County 279 80, 95, 321, 325, 73 621; New York Maclay, 288 290, 294, 323, 324, 77 754; 485, 486, 353, 356. Waddill, Holland Flinn 323 355, 65 304, 305, 89 294.10 And again decide it, sufficiently perfected, purview controlling decisions, 18 effect relation always question. 'The cannot impaired superseded law.' Oklahoma, 261 253, 260, 43 295, 298, 638. Hence court's characterization conclusive. 357, 306, 294. characterization, weight, reexamination 19 hand, itself characterizes inchoate, practically 'Whatever more completed procedure perfecting liens law state, attitude relieves consideration it.' cf. Knott, 298 544, 902, 1321, 104 741. 20 argues judged inchoate may affirm basis. disputes reading. states did consider nature presented merely become choate. hardly accept face rendered opinion's statement outset, together later explicit reference holding sort stop analyze detail. For clear, quite apart opinion, possible. 21 statute arises set out margin.11 asserts became recorded12 appointed. 'all substantial aids state's line utilized.' 22 With conclusion agree. true filing lien, computed wrongly owed it.13 358, 307, known. attach done appointed.14 Indeed, stated only bailiff, far appears type belonging known 23 Under where foreclose necessary describe attached.15 contrary provision, 24 '* duty whom such file proceedings, schedule, oath, rights thereto he owned contributions, foreclosed based, due, subsequently acquired, indicating schedule was, used connection trade, occupation, profession business, fail court, punished contempt court.' Jones Ill.Stat.Ann. (1944) 45.154(e), Smith-Hurd Stats. c. 48, 243(e). (Emphasis added.) 25 Not until required schedules16 know possession or, important, attached. attaches 'in business. *' then, initial step perfecti n It, injunction, protected whatever have. final assertion attachment is, example, levy. Ins. 443, 444, 189. 27 relied recording notices rested receiver's accomplishing perfection. alone achieved result. Neither correct. Both repudiated repeated decisions Court, th latest 28 show effective protect lienor others Government, contingently taking steps either giving public enforcing it.17 destroyed acts statutes creating affecting liens, executed degree test not, be, simply steps, lienor's enforced Government. 29 rule requires definite, ascertainable future three respects crucial time. These are: (1) identity lienor, 549, 551, 905, 741; (2) 294; (3) attaches, supra; power bring elements, them, down broad generality earth identity. 30 made certain, attached, latter fixed amounts miscalculated. neither definite certain shown. Here, 487, 'property 'devoted business constant.' As Finn 359, goods 'severed themselves free tenant (owner) payment.' cases, 'Merely caveat perfect come,' 754, tested perfection 'as matter actual fact, regardless how (the lien) Id., acquired title possession, Thelusson Smith, Wheat. 396, 271; since state; sever date. 32 To permit appointment, both, like these, substance overrule numerous cited no less 'specific perfected' impotent purpose. open door, too, think, nullification then could accomplished disclosing segregated estate; designated words classification, including here; definitively procedures. Congress make change, all. affirmed.18 33 Affirmed. 34 REED, dissenting. 35 my caused duly April May 20, Deeds statute. named gave precise address. They asserted aggregate sum lienee chattel legally instrument create taxpayer place superior innocent purchasers value. 45.154(b) (1), 243(b)(1), Act 36 deems files lien.1 I deem incident consummates property. recordation already adequately described notice. 37 suggests ruling business" persuasive similar constant. Texas taken fix devoted 487 U.S., 353 S.Ct., therefore, certain. 38 concludes content myself adding, respective priorities despite 424, 441, 39 JACKSON joins dissent. defendant Labor. exhibits Director's filed, $225.51, $303.29, $259.65. $788.45, $767.29. 12. sold auction behest Agencies. injunction prevented sale. exhaust fund, awarded balance Labor, instead 32, 34, Spencer, F.Supp. 763. petitioned certiorari, disposition fund controversy. 45.128—45.161, 217 seq. that, contained 'provisions intended induce up sound accordance Congressionally prescribed standards' 'to end' permitted build their own collection employers 90% tax those government,' (328 10, 842) Congress' intention give claims. applicable, noted, ones involved provisions federal-state cooperation 9. Steward Machine 548, 883, 1279, 1293. Rivard Bijou Furniture 68 R.I. 361, A.2d 853. uses term 'person,' defines 'persons' 'corporations, except specified, officers, partnerships, women *.' 1(23), 1(23). Since Evans include sense sense. Collier (14th ed.) 475. expressed. Elfast Lamb, Cir., 111 F.2d 434, 436. Note (1946) 59 1132, 1136. There minor differences phraseology 515 'did work change purpose 741, 'such (an hoate created laws Florida) lacks characteristics bars States' settle problem early mortgage discussed distinguished 293, 754. 'A hereby favor thereafter him interest, penalties hereafter due. Such equal Districtor account thereon. became, become, report setting forth Districtor, action years date determination assessment pursuant final.' 45.154(a), 243(a). 2. 'Such invalid purchaser value stock trade usual course employer's thereof office county situated. 45.154(b)(1), Cf. receiver. 297, 638; 93, 621. 243(e), provides foreclosure. section states: 'In attached'; continues language quoted text. prayed, 'that order entered Honorable commanding defendant, corporation, short thereto, 1st May, 1941, indicate business.' authorities text beginning Part ground owing even exist, represents 243(e): 'Foreclosure Lien. addition alternative remedy provided name wherein situated, praying aforesaid manner foreclosure mortgages courts record. (is)

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