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Spade v. Fathers

Decided: March 27, 1963.

ALBERT SPADE, INDIVIDUALLY AND T/A SPADE IRON WORKS, PLAINTIFF,
v.
THE SALVATORIAN FATHERS, MOTHER OF SAVIOR SEMINARY, A RELIGIOUS CORPORATION, AND PAGANO CONSTRUCTION CO., INC., A CORPORATION, DEFENDANTS



Pascoe, J.c.c. (temporarily assigned).

Pascoe

This is a supplementary proceeding by two creditors seeking priority to a fund now deposited in court.

The Federal Government filed a tax lien in Camden County against Albert Spade, individually and t/a Spade Iron Works (hereinafter Spade) on April 20, 1960. Interstate Iron and Supply Company (hereinafter Interstate) recovered a judgment against Spade on May 1, 1960; subsequently, Spade brought an action against The Salvatorian Fathers in its capacity as subcontractor for the construction of the seminary. The Salvatorian Fathers filed an interpleader naming

Spade and Pagano Construction Co., Inc., the contractor, on July 26, 1961.

Funds were deposited with the Clerk of the Superior Court on August 8, 1961 in Trenton, New Jersey. On December 1, 1961 settlement and judgment were entered in favor of Spade in the amount of $2,000. On September 27, 1961 Interstate executed and levied on the fund deposited with the Clerk of the Superior Court. The Federal Government claims priority in the same fund to the extent of its lien filed April 20, 1960. It is to be noted that Spade is domiciled in Camden County, as is defendant The Salvatorian Fathers, and the contract for the construction of the seminary was to be performed in Camden County.

The issue before this court is: Does the filing of a tax lien by the Federal Government in Camden County place a lien upon the funds belonging to the delinquent taxpayer and deposited in Trenton with the Clerk of the Superior Court, so as to perfect this lien against a subsequent judgment creditor.

The Federal Government's lien is a creature of the following legislation:

26 U.S.C.A. , § 6321:

"If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount * * * shall be a lien in favor of the United States upon all property and rights to property, whether real or personal belonging to such person."

26 U.S.C.A. , § 6323:

"[T]he lien imposed by section 6321 shall not be valid as against any mortgagee, pledgee, purchaser or judgment creditor until notice thereof has been filed by the secretary or his delegate * * * [i]n the office designated by the law of the State or Territory in which the property subject to the lien is situated, whenever the State or Territory has by law designated an office within the State or Territory for the filing of such notice."

New Jersey has provided for the filing of such liens in ...


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