Baumohl v. COLUMBIA JEWELRY COMPANY, Civ. No. 7864.

• Decision Date: 28 January 1955
• Docket Number: Civ. No. 7864.
• Citation: 127 F. Supp. 865
• Parties: Jacob P. BAUMOHL v. COLUMBIA JEWELRY COMPANY OF ANNAPOLIS, MARYLAND, a body corporate, and Sidney A. Needle, Agent for Columbia Jewelry Company of Annapolis, Maryland, and U. S. Treasury Department, Internal Revenue Service, Appellate Division, and Mace Silverman.
• Court: U.S. District Court — District of Maryland

127 F. Supp. 865

Jacob P. BAUMOHL v. COLUMBIA JEWELRY COMPANY OF ANNAPOLIS, MARYLAND, a body corporate, and Sidney A. Needle, Agent for Columbia Jewelry Company of Annapolis, Maryland, and U. S. Treasury Department, Internal Revenue Service, Appellate Division, and Mace Silverman.

Civ. No. 7864.

United States District Court, D. Maryland, Civil Division.

January 28, 1955.

Joseph W. Spector and Donald T. A. Fair, Baltimore, Md., for plaintiff.

Joseph Sherbow, Sidney A. Needle, Baltimore, Md., for Columbia Jewelry Co. of Annapolis, Md.

George Cochran Doub, U. S. Atty., and Walter E. Black, Jr., Asst. U. S. Atty., Baltimore, Md., for U. S. Treasury Department.

Harold Lewis, Baltimore, Md., for Mace Silverman.

THOMSEN, District Judge.

Defendants' several motions to dismiss question the jurisdiction of this court and the suability of one of the defendants. The complaint cites no statute, but alleges that "The matter in controversy exceeds, exclusion of interest and costs, the sum of $3000.00 and Defendant, U. S. Treasury Department Internal Revenue Service, is an instrumentality of the U. S. Government". At the argument plaintiff's counsel claimed jurisdiction under 28 U.S.C.A. § 1340, which provides:

"The district courts shall have original jurisdiction of any civil action arising under any Act of Congress providing for internal revenue, or revenue from imports or tonnage except matters within the jurisdiction of the Customs Court. June 25, 1948, c. 646, 62 Stat. 932."

The complaint alleges that defendant U. S. Treasury Department Internal Revenue Service holds a tax lien against defendant Columbia Jewelry Company, Int. Rev.Code 1954, §§ 6321, 6322, 26 U.S. C.A., 26 U.S.C.A. §§ 3670, 3671, but does not allege that said lien has ever been filed anywhere by the collector, Int.Rev. Code 1954, § 6323, 26 U.S.C.A., 26 U.S. C.A. § 3672. The complaint further alleges that defendant Needle, as secretary of and attorney for the company, negotiated with the Internal Revenue Service for settlement of the lien, and, as a result of said negotiations, was authorized by the Internal Revenue Service to accept sealed bids for the assets of the company, such bids to be opened by an agent of the Internal Revenue Service and to be accepted or rejected as the Internal Revenue Service might decide; that on Friday, October 29, 1954, the assets of the company were "opened for inspection" of prospective purchasers, and sealed bids were received by Needle; that plaintiff "has reason to believe" that defendant Mace Silverman was represented by an associate of Needle; that plaintiff bid $68,000 for the assets; that his bid was rejected; that "the alleged bid of Mace Silverman, $68,250.00, represented by an attorney believed to be as (sic) associate of the attorney conducting the sale therefore was highest"; that plaintiff on or about November 1, 1954, made known to the agent of Internal Revenue Service "his beliefs and complaints concerning the irregularities, collusion and dual representations" and by letter dated on or about November 5. 1954, offered $69,000 for the assets; that "the irregularities, collusion and dual representation...