Document: 382 U.S. 266 86 S.Ct. 411 15 L.Ed.2d 314 UNITED STATES, Petitioner,v.Ray F. SPEERS, Trustee in Bankruptcy of the Kurtz Roofing Company, etc. No. 17. Argued Oct. 20, 1965. Decided Dec. 13, Richard M.Roberts, Washington, D.C., for petitioner. Robert B. Gosline, Toledo, Ohio, respondent. Mr. Justice FORTAS delivered opinion Court. 1 This case presents question whether a federal tax lien, unrecorded as time bankruptcy, is valid against trustee bankruptcy. 2 On June 3, 1960, District Director Internal Revenue assessed more than $14,000 withholding taxes and interest Company. Demand payment was made, taxpayer refused to pay. gave rise lien.1 Notice lien not filed either Office Recorder Erie County, where had its principal place business, or United States Court, at least before February 1961.2 petition In ensuing proceedings took position that invalid him. He relied upon § 70, sub. c Act, 11 U.S.C. 110, (1964 ed.), which, he asserted, vested him rights 'judgment creditor,' 26 6323 which entitles creditor' prevail over an lien. Section provides part: 3 'The trustee, all property, coming into possession control court, creditor bankrupt could have obtained by legal equitable date shall be deemed such with rights, remedies, powers then holding thereon proceedings, actually exists.' 4 '(T)he imposed section 6321 any mortgagee, pledgee, purchaser, judgment until notice thereof has been Secretary his delegate * *.' 5 The trustee's position, short, statutory attached property filing petition; creditor'; that, under 6323, if sustained, would reduce Government's claim unpaid status unsecured claim, sharing fourth-class priority state local claims 64, a(4) 104, ranking behind administrative expenses, certain wage claims, specified creditors' expenses.3 result present instead recovering full amount owing it, receive only 53.48%. 6 affirmed referee, Court Appeals Sixth Circuit. 335 F.2d 311. Certiorari granted, 379 958, 85 665, 13 553, resolve conceded conflict between decisions Courts Second, Third, Ninth Circuits4 decision below. We affirm. 7 Despite language applicable provisions, most passing on sustained validity They arrived this authority statement v. Gilbert Associates, Inc., 345 361, 364, 73 701, 703, 97 L.Ed. 1071, phrase 3672, predecessor used Congress 'in usual, conventional sense court record 8 It clear, however, characterization intended exclude bankruptcy from scope creditor.' issue quite different. 9 involved neither proceeding nor arose out insolvency proceeding. municipal assessment reduced accorded statute. asserted superior based fact New Hampshire proceeding, had, first time, conveniently characterized nature judgment,' relying procedures taxing authorities.5 Because effect liens should determined diverse rules various States, held municipality purposes said: 10 'A cardinal principle scheme uniformity, far may be. Therefore, same application states. instance, we think words 3672 record, since states courts. do mind action authorities who acting judicially some other states, end something while act quasi-judicially are considered bodies.' (Footnotes omitted.) U.S., S.Ct., 703.6 view superiority because dominant theme need uniformity construing meaning cannot governing entirely different situation respect conferred latter circumstance confronted specific congressional Act defining trustee. no problem evaluating widely differing laws. possibility unequal laws, depending variances terms phraseology statutes judicial rulings thereon. Here faced uniform scheme—the light unequivocal 'all' bankrupt's property. 12 legislative history lends support conclusion drawn purpose invalidate 1910 enacted c, vesting 'with creditor.'7 Three years later, 1913, providing creditor.'8 These two statutes, their corresponding references co-existed nearly 40 years. During period, prior our 1953, squarely pass decided avoiding Sands, 174 384, 385 (C.A.2d Cir.), rejecting contrary dictum re Taylorcraft Aviation Corp., 168 808, 810 (C.A.6th Cir.). amending 1950, deleted 'all powers' lien.9 Elsewhere legislation it recognized category those includes creditors,10 holder generally 'greater creditor,'11 therefore, problem, 1950 amendments As House report accompanying noted, revision 'has placed bill protection trustees also simplify, extent expand, general expression bankruptcy.'12 14 1954 dealt explicitly ought liens. An unsuccessful effort reflected version proposed expressly 'artificial' creditors like bankruptcy.13 At conference, conferees acceded views Senate, 'advisable continue rely interpretation existing law attempting prescribe rules.'14 Government suggests 'existing law' sought preserved Court's Gilbert. But amendments, yet applied displace So concerned, likely reference unchallenged rule announced Second Circuit supra, courts cases creditor.15 already inconsistent Sands. recent years, began spread compelled exclusion benefits introduced reiterate power upset liens.16 Such alter scheme, but remove what throught erroneous gloss Thus, both Senate committee reports bill, H.R. 394, 88th Cong., reflect belief now relies 'would appear ideal creditor.'17 16 these materials—the adoption broadening expressions discontent excluding 6323—we persuaded read together, entitle 17 seeks ward off argument so confer classes 'windfalls' unwarranted equities situation. may, stated less invidiously indicates: Government, unlike creditors, policy secret liens, given advantage recorded bankruptcy.18 true consequence depriving claimed improve relative creditors—if there protected 6323—whose security subsequent who, once invalidated, secured assets. And will enhance estate claimants whose priorities higher afforded claims,19 well share Federal a(4), a(4). Whether inadvisable detain us,20 one favor event, possible deems appropriate, avoid regards unhappiness promptly lien.21 Should experience indicate inclusion within inadvisable, lost Congress. 18 advances last novel22 predicated 67, b 107, provides: 19 provisions 60 notwithstanding, (including those) debts State subdivision even though arising perfected debtor insolvent four months *. Where laws required arise they nevertheless valid, permitted accordance requirements contention lower court's reading correct, precludes appears contemplated b—that after 'valid trustee.' find inconsistency. b, insofar protect them 60, 96 permits transfers made Thus otherwise inchoate 'perfected' demand afterwards.23 does nullify purport consequences flow failure file when attach—namely, bankruptcy.24 There indication history, subsection affect construction 6323. hesitate relevant relationship very clarify did consider evidenced awareness interrelationship inconsistency.25 20 Affirmed. 21 BLACK, dissenting. 22 Code unfiled here holds must treated were thereby reducing government level creditors. I am unable agree. A except giving term artificial, fictional meaning. justifies extraordinary twist c. ed). That section, pertinent, 23 'c. 24 gives intimation destroy occurred. section's simply show make sure stretches too much say change drastically mere appointment render perfectly moment Nor can fairly attempt placing writing law, dates back 100 still think, said enacting 'the Circuits construed section. right. today frail inadequate support, destruction congressionally created 25 reverse judgment. ed.) 'If person liable pay neglects refuses demand, interest, additional amount, addition tax, assessable penalty, together costs accrue thereto) real personal, belonging person.' 6322 'Unless another specifically fixed liability satisfied becomes unenforceable reason lapse time.' brief 9, 1961. Statement, referee's certificate never controverted and, respondent contends, proof record. See §§ a(1)—(3), (1)—(3) ed.). Secured including creation recourse come play. Goggin Division Labor Law Enforcement California, 336 118, 69 469, 93 543; City Richmond Bird, 249 174, 39 186, 63 543. Administrative expenses precede personal accompanied enforced sale ed.); Goggin, 126 130, 473—475. Brust Sturr, 237 135 Cir.); Fidelity Tube 278 776 (C.A.3d Cir.) (Kalodner Hastie, JJ., dissenting), cert. denied sub nom. Borough East Newark 364 828, 81 66, 56; Simonson Granquist, 287 489 (C.A.9th (Hamley, J., expressing views), rev'd grounds, 369 38, 82 537, 557. England, 226 205 (dictum). 363, quoting Petition N.H. 411, 414, 90 A.2d 499, 502. emphasized concern administration petitioner Gilbert, 440, 1952 Term, pp. 22—24, argued: 'Congress intend subordinate merely statute assessments denominated 'judgments' Moreover, 'decisions' 'this jurisdiction' Town's 'judgments,' below failed give sufficient heed repeated declarations revenue interpreted 'so nationwide taxation,' hence subject unless involved, necessary implication, requires.' 25, 1910, 412, 36 Stat. 840, 8, provided 'such trustees, custody thereon; also, execution duly returned unsatisfied.' March 4, 166, 37 1016. 18, 2, 64 26, Prior amendment, possession. n. 7, supra; Lewis Manufacturers National Bank, 603, 605—606, 347, 348—349, 323. 1, 96, (4) Collier, 70.49, 1415 See, e.g., H.R.Rep. 745, 86th 1st Sess., accompany 7242, p. 10: 'As matter greater seem anomalous allow deny right holder.' 1293, 81st S. 88, 7; U.S.Code Congressional Service 1989. tenor amendment conceded. 776, 781, 786—787 (both majority dissenting opinions); op. cit. 1415; Seligson, Creditors' Rights, 32 N.Y.U.L.Rev. 708, 710 (1957). clear extended competent 'particular persons artificially concedes privileges designates such, sense.' 1337, 83d 2d 8300, A407; News 1954, 4554. Treas.Reg. Procedure Administration (1954 Code) 301.6323—1 (26 CFR 301.6323—1), incorporating material rejected Eighty-third S.Rep. 1622, 575; 5224; H.R.Conf.Rep. 2543, 78. E.g., Sampsell Straub, 194 228, 231 denied, 343 927, 72 761, 1338; McKay Trusco Finance Co., 198 431, 433 (C.A.5th Lustron 184 789 (C.A.7th Reconstruction Corp. 340 946, 71 531, 95 682. occasions approved appropriate committees, received assent Houses. 6, vetoed President September 106 Cong.Rec. 19168; 6; 136, 89th 6. 454, 10; 1133, 11. seems answered negative—and 1018, 62d 1—2. (1)—(3), (1) (3), wages, expenses. are, course, way affected decision. circumstances expense supra. note work hardship subsequently extending credit ignorance nondisclosure induce others incur hope repayment. governments might knew existence Memorandum Chairman, Drafting Committee Conference, contained 24—25. letter Senator Eastland opposing dated 1961, Treasury has, practice, exercised forbearance exists reasonable business regain financial stability. Enactment force service believed proved highly desirable.' 18. earlier rejected. Treasury, Aug. opposition 1871, 36. advanced, alternative basis disposition case, pursuant alleged 1961 retroactively validated declined reach merits noting presented referee filing. F.2d, 314. raised differs below, cited us aid Insofar particular regard properly us, 'Where labours discover design legislature, seizes every thing derived.' Fisher, Cranch 358, 386, 304 (Marshall, C.J.). Hutcheson, 312 219, 61 463, 788; Estate Sanford Commissioner Revenue, 308 39, 42—44, 51, 55—56, 84 20; Aluminum Co. America, 148 416, 429 (L.Hand, J.). 41, 539, 557; 67.20, 183; cf. 609, 350. 67.26, 283—286, 70.48, 1407. materials notes 11, 16, 17,

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