United States District Court, M.D. Tennessee, Nashville Division
A. TRAUGER UNITED STATES DISTRICT JUDGE.
before the court are the following motions:
(1) Plaintiff's Motion for Distribution of Deposit
(Docket No. 204);
(2) Defendants' Motion to Join Indispensable Interested
Parties and for multiple other forms of relief (Docket No.
(3) Plaintiff's Motion for Order of Contempt (Docket No.
(4) Defendants' Motion to Show Cause and for multiple
other forms of relief (Docket No. 209); and
(5) Defendants' Motion to Void Judgment and Order to Sell
Property and for multiple other forms of relief (Docket No.
United States brought this action to reduce certain tax
assessments against Dustin Bogart to judgment and to
foreclose on tax liens against Bogart's property in
Tennessee. The court found that the United States had valid
and subsisting tax liens against the property at issue and
ordered the foreclosure of the federal tax liens attached to
that property. Docket No. 176. The court ordered the sale of
the property free and clear of any right, title, lien, claim
or interest of any of the parties herein and ordered the
distribution of the sale proceeds first to pay the expenses
of the sale, second to the United States to satisfy
Bogart's federal income tax liabilities, and third to
Defendants. Id. By subsequent order, the court awarded
the United States judgment in the amount of $304, 584.22
against Defendant Dustin Bogart. Docket No. 182. Defendant
Bogart appealed that judgment, and the Sixth Circuit Court of
Appeals affirmed this court's opinion and upheld this
court's judgment. Docket Nos. 189-90.
that appeal, the court granted the United States' Motion
for Entry of Order of Sale, authorizing the Internal Revenue
Service (“IRS”) to offer the property at issue
for sale at public auction and to sell it free and clear of
liens or interests of the Defendants and of the United
States. Docket No. 195. Defendants appealed that decision to
the Sixth Circuit Court of Appeals. Docket No. 201. The Sixth
Circuit again affirmed this court's opinion and upheld
the Order of Sale, finding that Bogart's arguments
challenging the Order of Sale were barred by the
law-of-the-case doctrine. Docket Nos. 216-17. The Sixth
Circuit also denied Defendants' “pending
motions” as moot. Docket No. 216, p. 5.
time of the Sixth Circuit's second opinion,
Defendants' pending motions were Docket No. 205 (Motion
to Join Indispensable Parties), Docket No. 209 (Motion for
Order to Show Cause), and Docket No. 212 (Motion to Void
Judgment and Order to Sell Property). Those motions having
been denied by the appellate court, the Clerk is directed to
terminate them on this Court's docket.
FOR DISTRIBUTION OF DEPOSIT
Motion for Distribution of Deposit (Docket No. 204) is based
upon the IRS's June 28, 2016 offer for sale of
Bogart's real property in Tennessee. That property was
sold, and in accordance with the Order of Sale, a deposit of
$1, 000 was collected from the successful bidder and
deposited with the Clerk of Court. The successful bidder did
not complete the sale. The Order of Sale provides that if the
successful bidder does not complete the sale, the deposit is
forfeited and shall be applied to the cover the expenses of
the sale. Docket No. 195.
United States asks the court to distribute that deposit to
the IRS to be applied to the costs of sale, which exceeded
$1, 000. See Declaration of Roberta Colee, Property
and Liquidation Specialist for the IRS. (Docket No. 204-1).
The facts as set forth in Ms. Colee's Declaration have
not been disputed. Therefore, pursuant to the Order of Sale