United States v. Liverpool London Globe Insurance Company

• Decision Date: 10 January 1955
• Docket Number: No. 34,34
• Citation: 75 S.Ct. 247,348 U.S. 215,99 L.Ed. 268
• Parties: UNITED STATES of America, Intervenor, Petitioner, v. The LIVERPOOL & LONDON & GLOBE INSURANCE COMPANY, Ltd., and Sunnyland Wholesale Furniture Company
• Court: U.S. Supreme Court

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 and Submitted Nov. 16, 1954.

Decided Jan. 10, 1955.

Mr.

Charles K. Rice, Washington, D.C., for petitioner.

Mr. Searcy L. Johnson, Dallas, Tex., for respondent Liverpool Ins. Co.

Mr. Arthur S. Goldberg, Dallas, Tex., for respondent Sunnyland Furniture Co.

Mr. Justice MINTON delivered the opinion of the Court.

This is a case involving priority of federal tax liens and a lien of garnishment.

On March 8, 1952, fire destroyed certain property of Adams, engaged in a furniture business in Temple, Bell County, Texas. Respondent insurance company and another were the insurers. The insurance companies agreed on the amount of the loss, and they were to share the payment equally. Before the insurance money was paid, a creditor of Adams, the Sunnyland Wholesale Furniture Company, on April 8, 1952, sued Adams on an open account. At the same time, a writ of garnishment was issued and served upon the Liverpool & London & Globe Insurance Company, attaching the insurance funds due and owing Adams. On April 21, 1952, the assessment lists covering the unpaid federal taxes of Adams and his wife for 1948 and 1950 were received in the office of the Collector of Internal Revenue for Texas. On April 26, 1952, notice of tax liens was filed in the office of the county clerk of Bell County, Texas, in favor of the United States for $10,417.57, with interest. Notice of the tax liens with warrants of distraint and notice of levy were served on the respondent insurance company. On June 20, 1952, judgment was entered against Adams in favor of Sunnyland for $2,516.70, with interest and costs. When the garnishee, the respondent insurance company, answered, it named the United States an additional party defendant and requested a determination of priorities of the garnisher and the United States, and asked for reasonable attorney's fees. The amendment was allowed, and the United States was served with process to appear in the state court. On petition of the United States the interpleader action was removed to the Northern District of Texas, and the United States was dismissed as a party defendant and permitted to file its complaint for foreclosure of its tax liens. The respondent insurance company paid $7,500.39 into the registry of the court and asked for an attorney's fee of $500. The District Court held the lien of the garnisher superior to the liens of the United States for taxes and allowed the garnishee $500 for attorney's fees. 107 F.Supp. 405. The Court of...