Document: 523 U.S. 517118 S.Ct. 1478140 L.Ed.2d 710 UNITED STATES, Petitioner,v.ESTATE OF Francis J. ROMANI et al. No. 96-1613. Supreme Court of the United States Argued Jan. 12, 1998. Decided April 29, Syllabus * After a third party perfected $400,000 judgment lien under Pennsylvania law on Romani's Cambria County real property, Internal Revenue Service filed notices tax liens totaling some $490,000. When Mr. Romani died, his entire estate consisted worth only $53,001. Because property was encumbered by both and federal liens, estate's administrator sought county court's permission to transfer creditor in lieu execution. The court authorized conveyance, overruling Federal Government's objection that violated priority statute, 31 U.S.C. §3713(a), which provides Government claim "shall be paid first'' when decedent's cannot pay all its debts. Superior affirmed, as did Court. latter determined there "plain inconsistency'' between §3713 Tax Lien Act 1966, not valid'' against creditors until prescribed notice has been given, 26 §6323(a). concluded 1966 effectively limited §3713's operation debts, relying v. Kimbell Foods, Inc., 440 715, 738, 99 1448, 1463-1464, 59 711, noted modified preferred position area recognized many state claims over liens. Held: Section 3713(a) does require given preference creditor's property. Pp. ____-____. (a) There is no dispute about meaning either statute or Act. It undisputed that, law, acquired valid before death served That therefore sense nothing more done have choate lien. E.g., City New Britain, 347 81, 84, 74 367, 369-370, 98 L.Ed. 520. And review Act's history reveals each time Congress revisited lien, it ameliorated pre-existing harsh consequences for delinquent taxpayer's other secured creditors. Here, agree §6323(a)'s terms, are earlier recorded (b) this never definitively resolved basic question whether gives unsecured creditors, also applies antecedent see, e.g., Vermont, 377 351, 358, n. 8, 84 1267, 1271, 12 370, seem appropriate view issue here implicitly amended repealed §3713(a). Instead, proper inquiry how best harmonize two statutes' impact power collect taxes. (c) Nothing statute's text long justifies conclusion authorizes equivalent secret substitute expressly declares case kind. On several occasions, specific policy embodied later should control interpretation older despite law's literal, unconditional fact had See, Cook Nat. Bank States, 107 445, 448-451, 2 561, 564-567, 27 537. Emory, 314 423, 429-433, 62 317, 320-323, 86 315, Key, 397 322, 324-333, 90 1049, 1051-1056, 25 340, distinguished. So too here, sound reasons treating governing statute. provisions comprehensive, reflecting an obvious attempt accommodate strong objections enforcement represents Congress' detailed unpaid taxes yield different sorts interests (including, mechanic's attorneys' liens) types securities, motor vehicles). See §6323. Indeed, Court's unambiguous determination interest collection paramount enforcing claims, see U.S., at 733-735, S.Ct., 1461-1462, would anomalous conclude intended impose greater burdens citizen than those specifically crafted purposes. 547 Pa. 41, 688 A.2d 703, affirmed. STEVENS, J., delivered opinion Court, REHNQUIST, C. O'CONNOR, KENNEDY, SOUTER, THOMAS, GINSBURG, BREYER, JJ., joined. SCALIA, concurring part judgment. Kent L. Jones, Washington, DC, petitioner. Patrick F. McCartan, Cleveland, OH, respondent. Justice STEVENS 1 debts.1 presented requires even though such §6321 seq. January 25, 1985, Common Pleas County, Pennsylvania, entered favor Industries, Romani. clerk's office therefore, matter became defendant's County. Thereafter, series taxes, penalties described amounted approximately 3 died 13, 1992, from creditor, acknowledged were lien; but, giving new Franklin's aphorism "in world can said certain, except taxes,''2 opposed ground (§3713) gave right "be first.'' 4 overruled conveyance. State 703 (1997). first §3713, appears give "absolute priority'' competing given. Id., 45, A.2d, 705.3 Then, reasoning 711 (1979), id., effect limiting 5 decision conflicts with appeals decisions, Kentucky ex rel. Luckett 383 F.2d 13 (C.A.6 1967), Nesbitt 622 433 (C.A.9 1980). Moreover, petition certiorari, submitted inconsistent our holding Thelusson Smith, Wheat. 396, 271 (1817), admonition ""[o]nly plainest inconsistency warrant finding implied exception so clear command [31 §3713],''' 324-325, 1051, 340 (1970) (quoting 433, 322-323, 315 (1941)). We granted 521 ----, 117 2506, 138 1010 (1997), resolve conflict consider Thelusson, any cases construing result. II 6 three statutes disposition case. comment considering applicability 7 shall create where located. 42 Cons.Stat. §4303(a) (1995). recorded, same sale mortgagee.4 recording one not, course, located elsewhere. In case, however, debtor's Industries' "perfected lien-when identity lienor, subject amount established.'' 369, 520 (1954); Illinois Gordon Campbell, 329 362, 375, 67 347-348, 91 348 (1946). 8 least since 1865.5 Originally applied, without exception, taxpayer immediately upon neglect failure demand.6 An unrecorded bona fide purchaser who Snyder, 149 210, 213-215, 846, 847-848, 37 705 (1893). 1913, provide mortgagee, purchaser, creditor'' clerk district local authorities Mar. 4, Stat. 1016. 1939, broadened protection unfiled include pledgees holders certain securities. June §401, 53 882-883. again encompass variety additional transactions, included protecting previously filed. 80 1125-1132, amended, 9 sum, original taxpayer.7 agreed terms §6323(a), created III 10 places reliance virtually unchanged enactment 1797.8 As we pointed out Moore, 423 77, 96 310, 46 219 (1975), versions statute,9 but "its roots reach back further into English common law,'' 80, 313. sovereign prerogative exercised Crown "an inherent incident sovereignty,'' ibid., applied claims. Brandeis Marshall York, 254 380, 384, 41 143, 145, 65 (1920), " [did] obtain debtor undertakes enforce right.'' itself States.10 Given background, respondent argues read creditors.11 11 dicta support contention well tend refute it. Perhaps strongest found Story's statement: "What then nature priority, thus established favour States? Is right, supersedes overrules assignment debtor, may afterwards elect take execution, prevent passing virtue assignees? Or, mere prior payment, general funds hands clearly falls, within description. language employed naturally express intent; must strained ordinary import, speak other.'' Conard Atlantic Ins. Co. N.Y., Pet. 386, 439, 189 (1828). "must strained'' entitled special respect because he familiar 18th-century usage judges 20th-century perspective. 14 cannot, ignore 426, recent 1051-1052, (1970). held brief opinion12 statutory always accords For reasons, do accept reading opinion. 15 First, factual matter, 1817 decided, procedure thereby creating parcel estate. generally Dembitz, A Treatise Land Titles §127, pp. 948-952 (1895). Notwithstanding judgment, could free creditor. Semple Burd, Serg. & Rawle 286, 291 (Pa.1821) ("The prevailing object Legislature, uniformly been, security confirming interferes circulation embarrassing fair purchaser''). 16 Second, importance, joined author Thelusson,13 Story explained why fully consistent statute: 17 "The decision, was, title, execution levy Sedgely estate; title proceeds if deemed payment attached creditors; potential land, carry legal sale, made adverse This manner understood, Judges concurred decision; obvious, proposition, displaced States; lien.'' Conard, Pet., 444, 189.14 18 relies quoted 322-323: "Only [§3713].'' Key Emory unsecured, perfectly construction statements context, shed light clarity basis claiming point: "This raise question, decided §3466 grants Gilbert Associates, 345 361, 365-366, 73 701 [704-705], 97 1071 (1953).'' 332, 11, 1056, 11. 19 age great deal litigation, application answered definitively. 370 (1964) (citing cases). dissent Associates Frankfurter referred reluctance decide "not today almost century half.'' 705. 20 specific, is, possible, less settled regard sometimes "divested'' "either possession'' "general, unperfected lien'' defeated priority. 366, 704-705. Assuming validity "title test deciding personal sufficiently purposes (a 371, 345-346), aware decisions applying theory reason lienor mortgagee acquire possession order perfect 21 remains unresolved, think IV 22 particularly Jackson emphasized importance relevant policies. Joined Justices, wrote: 23 announces unnecessarily ruthless arbitrary one. own insolvent government courts, meritorious equitable, power. But assertion supremacy contrary policy. limitation itself, prevail Its generalities lightly construed frustrate statute.'' Massachusetts 333 611, 635, 68 747, 760-761, 92 968 (1948) (Jackson, dissenting). 24 occasions followed approach amended. Thus, 537 (1883), apply national banks National comprehensively regulated banks' obligations distribution assets. Guaranty Trust 280 478, 485, 50 212, 214, 556 (1930), Transportation 1920 superseded railroads arising bankruptcy context another text. early accorded ""all debts due assessments laws thereof''' "coextensive'' Guarantee Title Surety Co., 224 152, 158, 32 457, 459, 56 706 (1912) Bankruptcy 1867, Rev. §5101). such, act "were regarded pari materia, unqualified; . neither contained qualification, none interpolated.'' Ibid. 1898, subordinated (except due) kinds tension former like 158-160, 459-460; Davis Pringle, 268 317-319, 45 549, 550, 69 974 (1925).15 taxpayer. Act, 1920, instance, example, Even amendments assumed they concerned relative Hampshire town taxpayer, considered qualify "judgment 363-364, 703-704. Only after negative obtained now portray deviation relatively opinions trumped statutes: 320-323 (the Housing Act), 1051-1056 (Chapter X Act). cases, commands act, nor believe intent. 329, 1053-1054. present suit. 28 emphasizes declined enact American Bar Association's proposal modify failed similar 1970. Both proposals provided insolvency displace interests, harmonized Hearings H.R. 11256 11290 House Committee Ways Means, 89th Cong., 2d Sess., 197 (1966) (hereinafter Hearings); S. 2197, 92d 1st Sess. (1971). significantly changed respects follow scheme laws. Hearings, 85, 198; Plumb 10, 53, 33-37. wide-ranging beyond Means Committee's jurisdiction. 8. 1970 Senate Judiciary Committee-explained reports hearings-might merely reflect disagreement broad changes assumption needed because, believed, number views. Committees' failures report necessarily indicate legislator thought supersede adjudication They hypothesis Houses silently endorsed position. 29 actual measures taken superior insight regarding noted, bespeak condemnation unfairly defeat expectations innocent "the needs citizens certainty convenience rules their commercial dealings.'' 112 Cong. Rec. 22227 (remarks Rep. Byrnes); cf. Speers, 382 266, 275, 411, 416, (1965) (referring "general liens''). These concerns want conflicting harmonized: 30 "Liens dry-as-dust significance industrial community credit importance. One readily impute intention congenitally unstable.'' E. Brown, 1957 Term-Foreword: Process Law, 72 Harv. L.Rev. 87 (1958) (footnote omitted). interpreting 33 ordered. 34 35 I join portion takes seriously, encourages future, argument laughed court. contended §3713(a) "failed enact'' put forward Association citing hearings bill proposed in, passed by, Senate. Brief 25-27, Association, Final Report Liens 7, 122-124 (1959), 199 (1966); (1971)). responds these rejected "provide endorsed'' ante, __, well, might provisions, existing already supreme. implies features, Members (or them) somehow course rejecting them wanted subsist, rejection support'' 36 so, reasons. First most obviously, will legislate. refusing (if called act) utterly effect, place serious discussion law. Constitution sets forth country: passes signed President repassed supermajority veto. Art. I, §7. Everything else prelude internal organization. legislating individual Member voting. legislating, enacted bear particular whatever. puts business writing laws, old ones. [L]ater-enacted declare law.'' Almendarez-Torres 118 1219, 1227, --- ---- (1998); 1243 (SCALIA, dissenting) ("This amendment cause [the statute] meant, petitioner's conviction, something what said''). If intent change go saying unenacted possibly so. saying, arguing well. 38 past critical using so-called legislative (hearings, committee reports, floor debates) determine meaning. Conroy Aniskoff, 507 511, 518-528, 113 1562, 1566-1572, 123 229 (1993) judgment); Thompson/Center Arms 504 505, 521, 2102, 2111-2112, 119 308 (1992) Blanchard Bergeron, 489 87, 98-100, 109 939, 946-948, 103 (1989) judgment). Today, fascination files (we consult them, there) carried silly extreme. Today's ever-so-carefully analyzes, history, legislation-that-never-was. sort material conscientious counsel investigate (at clients' expense) hearings, debates pertaining (which bad enough), find, to, bills enacted. reason, say syllabus constitutes prepared Reporter Decisions reader. Detroit Timber Lumber 200 321, 337, 282, 287, 499. §3713. Priority (a)(1) when- (A) person indebted and- (i) enough makes voluntary property; (ii) absent, attached; (iii) committed; (B) deceased custody executor administrator, debtor. (2) subsection 11.'' direct descendent Revised Statutes, codified §191. Letter November 1789 Jean Baptiste Le Roy, Writings Benjamin Franklin (A. Smyth ed.1907). often clarified somewhat context: "Our established, appearance promises permanency; taxes.'' seq., pertinent part: "§6321.Lien "If liable neglects refuses demand, (including interest, amount, addition tax, assessable penalty, together costs accrue thereto) rights personal, belonging person.'' "§6323.Validity persons Purchasers, lienors, imposed section 6321 holder thereof meets requirements (f) Secretary.'' 6323(f)(1)(A)(i) required [i]n county, governmental subdivision), designated State, situated.'' office, "for judicial §6323(f)(1)(B). elaborated: "We [County Claim] Bureau process "Judgment product centuries authorize seize sell land debtors satisfy sale. binding duties parties, establishes debtor-creditor relationship Prothonotary's Office. record, operates county.'' re Upset Sale, Claim Berks 505 327, 334, 479 940, 943 (1984). post-Civil War Reconstruction cents per pound producer, owner, holder'' cotton paid. July 1866, §1, 98. §9, 107, nearly identical provision revenue 3, 1865, 470-471, 6, infra. 1865 following sentence: "And person, bank, association, company, corporation, duty, refuse paid, penalties, thereto, collector, deputy collector exists, sum aforesaid, penalty non-payment, sufficient fees, costs, expenses levy.'' 470-471. provision, §3186 Statutes. thorough description reactions Kennedy, Relative Government: Pernicious Career Inchoate General Lien, 63 Yale L.J. 905, 919-922 (1954) Kennedy). 1797, §5, 515, provided: enacted, officer, hereafter becoming bond otherwise, become insolvent, executors administrators, insufficient deceased, debt satisfied; hereby extend, having make thereof, effects absconding, concealed, absent committed.'' Compare 1, supra. covers Price 269 492, 499-502, 180, 180-182, 70 373 (1926); 625-626, 24, 755-756, (1948). earliest 31, 1789, dealt bonds posted importers release imported goods. "debt States' discharged insolvency, administrators ' §21, 42. 1792 coverage providing "cases insolvency' benefit situations §3466, §191, covers. 263.'' subject, stated court, deliberation, entitled, partake character public debtors. distinction recollected.'' Hooe, Cranch 73, 90, (1805). Although defend raised. Heckler 461 458, 468-469, 1952, 1958, 76 66 (1983). rarely argument, however. Ibid.; Matsushita Elec. Industrial Epstein, 516 379, 5, 116 873, 880, 134 (1996). reads, full, follows: "These [statutory] expressions used, exclude individuals, whatever dignity be, shown making If, accrued conveyance mortgaged secure debt; seized fi. fa., devested States. lands, subsequent congress defeats specified 65th 1799.'' 425-426, (1817). apologized Thelusson: owing accidental circumstances, usually Court.'' 442, Washington's essentially as, Circuit Justice. Wheat., 271, h. Relying 1857 Attorney issued concluding "has distinctly overruled'' "will specific.'' Op. Att. Gen. 28, 29. Kennedy 908-911 (advancing decisions). 1978 inapplicable cases. Pub.L. 95-598, §322(b), 2679, §3713(a)(2). differences criticism: "as result continuing discrepancies rules, distinct incentive throw whose handled, expense burden form proceeding.'' Plumb, Insolvency: Proposals Reform, Mich. 8-9 (1971) Plumb).

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