Document: 348 U.S. 215 75 S.Ct. 247 99 L.Ed. 268 UNITED STATES of America, Intervenor, Petitioner,v.The LIVERPOOL & LONDON GLOBE INSURANCE COMPANY, Ltd., and Sunnyland Wholesale Furniture Company. No. 34. Argued Submitted Nov. 16, 1954. Decided Jan. 10, 1955. Mr. Charles K. Rice, Washington, D.C., for petitioner. Searcy L. Johnson, Dallas, Tex., respondent Liverpool Ins. Co. Arthur S. Goldberg, Justice MINTON delivered the opinion Court. 1 This is a case involving priority federal tax liens lien garnishment. 2 On March 8, 1952, fire destroyed certain property Adams, engaged in furniture business Temple, Bell County, Texas. Respondent insurance company another were insurers. The companies agreed on amount loss, they to share payment equally. Before money was paid, creditor Company, April sued Adams an open account. At same time, writ garnishment issued served upon London Globe Insurance attaching funds due owing Adams. 21, assessment lists covering unpaid taxes his wife 1948 1950 received office Collector Internal Revenue 26, notice filed county clerk Texas, favor United States $10,417.57, with interest. Notice warrants distraint levy company. June 20, judgment entered against $2,516.70, interest costs. When garnishee, company, answered, it named additional party defendant requested determination priorities garnisher States, asked reasonable attorney's fees. amendment allowed, process appear state court. petition interpleader action removed Northern District dismissed as permitted file its complaint foreclosure liens. paid $7,500.39 into registry court fee $500. Court held superior allowed garnishee $500 107 F.Supp. 405. Appeals affirmed, one judge dissenting. 209 F.2d 684. We granted certiorari, 347 973, 785. 3 question identical that v. Acri, 211, 239, Security Trust Savings Bank, 340 47, 71 111, 95 53. authority those cases we hold garnisher. 4 As Rule 677, Vernon's Texas Rules Civil Procedure, provides: 5 'Where discharged answer, costs proceeding, including compensation shall be taxed plaintiff; where answer has not been controverted thereon, such included execution provided this section; contested, abide issue contest.' 6 evidently found there no contest between other parties, should allowance It, therefore, ordered check payable out by it. 7 If prior Government liens, have not, certainly fees proceeding are authorization error. adjudged defendant, 677. 8 reversed. 9 Reversed.

Category: 11