Pennsylvania Turnpike Commission v. McGinnes
| Decision Date | 29 September 1958 |
| Docket Number | Civ. A. No. 24217. |
| Citation | 169 F. Supp. 580 |
| Parties | PENNSYLVANIA TURNPIKE COMMISSION v. Edgar A. McGINNES, District Director of Internal Revenue, Philadelphia, Manu-Mine Research & Development Company and Seaboard Surety Company. |
| Court | U.S. District Court — Eastern District of Pennsylvania |
COPYRIGHT MATERIAL OMITTED
Dilworth, Paxson, Kalish, Kohn & Dilks, Philadelphia, Pa., for plaintiff.
Daniel Mungall, Jr., Harold K. Wood, U. S. Atty., Philadelphia, Pa., Frederick G. McGavin, Reading, Pa., for defendants.
The defendant Manu-Mine had contracts with the Pennsylvania Turnpike Commission and others which resulted in large profits. The complaint avers that, in 1956, Manu-Mine paid to the office of McGinnes, the District Director of Internal Revenue, income taxes for the taxable year ending October 31, 1955, in the sum of more than $1,000,000. The money so paid was entirely derived from funds obtained from the Turnpike Commission by means of a conspiracy to defraud. In 1957 Manu-Mine assigned to the defendant Seaboard, a creditor, all of its interest in any money which might become due by reason of any overpayment of federal income tax for its taxable year 1955. The District Director (the defendant McGinnes) is about to allow a claim for refund in the amount of some $900,000 of income tax paid by Manu-Mine for the taxable year ending October 31, 1955, and arising from losses in 1957, incurred in an operation having nothing to do with the Turnpike job. In this action the plaintiff claims that it is entitled to the refund and seeks to prevent its payment to either Manu-Mine or its assignee Seaboard. Now before the Court are the defendants' motions to dismiss.
Without entering upon a discussion of all of the grounds upon which the plaintiff contends that the Court has jurisdiction I can state my opinion that Section 2463 of Title 28 U.S.C.A. which provides that property "taken or detained under any revenue law of the United States * * * shall be deemed to be in the custody of the law and subject only to the orders and decrees of the courts of the United States having jurisdiction thereof" is adequate to support the jurisdiction. In Raffaele v. Granger, 196 F.2d 620, 623, the Court of Appeals for the Third Circuit, by Judge Hastie, said In that case a warrant of distraint had issued, but I think the language of the statute ("property taken or detained under any revenue law") is quite broad enough to cover property or money which has been voluntarily paid, the title to which is subject to dispute. The case cited also holds that "the court having jurisdiction thereof" is the district court for the district wherein the property is situated, in this case the Eastern District. See also National Iron Bank v. Manning, D.C., 76 F.Supp. 841; Gerth v. United States, D.C., 132 F.Supp. 894. From these decisions it appears that it is not necessary that the District Director be interested, except as a stakeholder, or that there be diversity of citizenship between the claimants.
The fact that an action is pending in the Dauphin County Court between the plaintiff and Manu-Mine to recover the funds alleged to have been obtained by fraud from the plaintiff does not bar the prosecution of this action. Evans v. International Typographical Union, D.C., 76 F.Supp. 881.
The issuance of a preliminary injunction by the Court of Common Pleas of Dauphin County, 13 Pa.Dist. & Co. R.2d 290, which action was affirmed by the Pennsylvania Supreme Court in Pennsylvania Turnpike Commission v. Evans, 392 Pa. 110, 139 A.2d 530, involving the facts now before this Court, does not amount to res judicata. The doctrine of res judicata does not apply to an interlocutory order or injunction. See Paxson's Appeal, 106 Pa. 429; Creighan v. City of Pittsburgh, 389 Pa. 569, 574, 132 A.2d 867; Gonzales v. Gonzales, D.C., 83 F.Supp. 496, 500. This is true even though the interlocutory order or...
To continue reading
Request your trial
-
Roodveldt v. Merrill Lynch, Pierce
...is merely provisional, not binding on the court or the parties in subsequent proceedings. See, e.g., Pennsylvania Turnpike Commission v. McGinnes, 169 F.Supp. 580, 582-83 (E.D.Pa.1958) (citations omitted; applying Pennsylvania law), rev'd on other grounds, 268 F.2d 65 (3d Cir. 1958), cert. ......
-
Haraburda v. United States Steel Corporation
...in favor of its having jurisdiction. E. g., Cordero v. Panama Canal Co., D.C.S.D.N.Y., 170 F. Supp. 234; Pennsylvania Turnpike Comm. v. McGinnes, D.C.E.D.Pa., 169 F.Supp. 580, leave to appeal granted and cause reversed, 3 Cir., 268 F.2d "On the other hand, the more logical view is exemplifi......
-
United States v. Stonehill
...apply to an interlocutory order, such as a motion to suppress, even if the order was affirmed on appeal. Pennsylvania Turnpike Commission v. McGinnes, 169 F.Supp. 580 (E.D.Pa.1958). The appellate decision does, however, become the "law of the case". As the Eighth Circuit said in Toucey v. N......
-
In re 641 Associates, Ltd.
...swiftly-made decision on a preliminary injunction, no res judicata effect attached thereto. See Pennsylvania Turnpike Comm'n v. McGinnes, 169 F.Supp. 580, 582-83 (E.D.Pa.1958), rev'd on other grounds, 268 F.2d 65 (3d Cir.), cert. denied, 361 U.S. 829, 80 S.Ct. 78, 4 L.Ed.2d 71 (1959); In re......