Legal Document

345 U.S. 361 73 Supreme Court Reporter 701 97 L.Ed. 1071 UNITED STATESv.GILBERT ASSOCIATES, Incorporated Number 440. Argued March 11, 1953. Decided April 6, Mr. Harry Baum, Washington, D.C., for petitioner. No appearance respondent. Justice MINTON delivered the opinion of Court. 1 This case involves question whether Town Walpole, New Hampshire, or Federal Government has prior right to a fund in hands state court receiver respondent-taxpayer, an insolvent corporation. The Hampshire held was entitled priority, Petition Gilbert Associates, Inc., N.H. 411, 90 Atlantic Reporter, 2nd Series 499, and we granted certiorari, 344 911, 335. 2 claims both arise from tax liens. Town's lien grew out assessment ad valorem upon certain machinery respondent, years 1947 1948 amounts $612.95 $690.85, respectively. corporation thereafter declared insolvent, temporary appointed August 12, 1949, made permanent January 30, 1950. taxes were assessed 1, 1947, 1948. On September 25, 1948, sold taxpayer's property at sale pay accrued year 1947. 24, same record does not disclose nature these tax-sale proceedings. We are informed that bid its own sales. At least never took possession property, which later by receiver, creating involved here. Government's employment, withholding, income became due between 1943 June sum $3,171.97. Notice this filed office Clerk United States District on 3 Under § 3672 Internal Revenue Code, 56 Statutes-at-Large 798, 26 Code KF62 (1946 ed.) 3672, Annotated KF65 U5 'shall be valid as against any mortgagee, pledgee, purchaser, judgment creditor until notice thereof been collector—* * *. In clerk district judicial subject is situated *.' since respectively, such assessments 'in judgment' under law within meaning Town's. 4 Was 3672? instant said: 5 'It settled our decisions judgment, enforced warrant instead execution. Boody versus Watson, 64 162, 167, 9 794; Jaffrey Smith, 76 H.H. 168, 171, 80 504; Nottingham Newmarket Mfg. Company, 84 419, 151 709 See also, Automatic Sprinkler Corporation Marston, 94 375, 54 154.' 414, 502. 6 would presume say what effect proceeding Hampshire. free give interpretation purpose internal administration. Waddill, Holland & Flinn, 323 353, 65 304, 89 294. also Howard Commissioners Louisville Sinking Fund, 624, 465. 7 freely concedes, however, it must, federal statute decide. Security Trust Savings Bank, 340 47, 71 111, 95 53. Congress enacted meet harsh condition created holding Snyder, 149 210, 13 846, 37 705, when liens few, secret good purchaser value without notice. 8 A cardinal principle scheme uniformity, far may be. Therefore, 'judgment creditor' should have application all states. instance, think used words usual, conventional sense record, states courts.1 do had mind action taxing authorities who acting judicially some other states,2 where end result something judgment,' while act quasi-judicially considered administrative bodies.3 conclude whatever proceedings Walpole amount purposes State they resulted making 3672. 10 While creditor, holder general property. So lienholder property.4 But taxpayer benefit another 3466 Revised Statutes, 31 191, provisions set forth margin.5 11 As usual cases like this, asserts perfected specific impliedly excepted statute. actually there exception. Once again, find unnecessary issue because asserted here raise question. 12 type 'specificity' requires attached reducing possession, theory no claim longer debtor. Thelusson Wheat. 396, 271. Until remains lien. There ground contention possession. reveals action. mere attachment before recording not, contrary priority over States. divested either title Town, therefore, only general, unperfected supra; People Illinois ex rel. Gordon Campbell, 329 362, 370, 67 340, 345, 91 348. Where clearly awards Taxes, 314 480, 488, 62 350, 354, 86 356. reversed. 14 Reversed. 15 FRANKFURTER, whom REED joins, dissenting. 16 N Dec. Immigration Nationality Decisions cannot agree with insofar supposes read requiring procedures—and procedures—be complied each becomes magic creditor.' Section gives creditors but creditors. rule uniformity Congress. demand procedure followed every State. Nor particular followed, formally prosecute his courts obtain even commonlaw requirements satisfied. 17 Of course, wand label wave away requirement, matter interpretation, insist anything more than position holds sense.' refers law, closely comparable bankruptcy provisions, determine taken authority substantially given stands—along obtained record—on higher footing those yet establish their court. If has, informs us, normal attributes see way escaping conclusion light decisions, Co., 709; cf. 376, 154, reason believing ruling simply applies express controlling unrelated implications Nothing ought required. 18 view Court's reluctance today almost century half decide issues embarrass consideration speaking them time. Compare Conard insurance Pet. 386, 441, 444, 189, 355, 305, 294; Yale L.J. 1258. 348, 348 (dissenting opinion). It particularly inappropriate so case, told kind arisen sales circumstances case. concurring Jackson supra, page 52, 114. arrived judgments preventing collateral attacks them, ascertaining rights hearing connection deciding local applicable method collecting them. These cases, decision, status technical created. Harding Hart, 332 Ill. 467, 163 Northeastern KF135 N59 769; Glens Falls company Ferguson, 38 N.Y. 89; Williams Weaver, 75 30; Georgia 112 N.C. 34, Southeastern S6 10, 19 L.R.A. 485; Union Tanning Commonwealth, 123 Va. 610, 96 780. Hibbard Clark, 155, judgment. Cooley, Taxation (4th ed., 1924), 91—92, points assessments, though enough definitely taxes, judgments. First National Bank Remsen Hayes, 186 Iowa 892, 171 Northwestern N69 715; Alexander 137 477, 120 296; Weyerhaeuser Timber Pierce County, Wash. 534, 167 Pacific P2 35; Stimson Mason Wash, 603, 192 994. '§ 3670. Property 'If person liable neglects refuses after demand, (including interest, penalty, additional amount, addition tax, together costs accrue thereto) shall favor real personal, belonging person.' 3670, I.R.C., R.S. 3466. 'Whenever indebted whenever estate deceased debtor, executors administrators, insufficient debts deceased, first satisfied; (hereby) established extend well having sufficient debts, makes voluntary assignment thereof, effects absconding, concealed, absent debtor process committed.'

Classification Label: 11