27 N.E.3d 1085
Ind. Ct. App.2015Background
- In 2000 the Indiana Department of Revenue filed tax warrants in Marshall County against taxpayer Dale Dodson and renewed them in 2010, creating county-specific judgment liens.
- In Nov. 2010 and Oct. 2011 the Department levied two breeder’s award payments due to Dodson (totaling $11,500) and intercepted them before deposit to Dodson’s bank account.
- On Nov. 16, 2010 Gordon Etzler filed a UCC financing statement claiming a security interest in any breeder’s award proceeds owed to Dodson; Etzler’s UCC filing was later acknowledged as valid and perfected.
- Etzler demanded payment from the Department; the Department refused and denied administrative review; Etzler’s separate Tax Court action was dismissed for lack of jurisdiction.
- Etzler sued the Department; the trial court granted the Department summary judgment and denied Etzler’s cross-motion. Etzler appealed.
- The Court of Appeals held the Department’s Marshall County tax-warrant judgment created a lien only on property in that county and concluded the Department lacked authority to levy the breeder’s awards located outside Marshall County; Etzler’s perfected UCC interest therefore had priority.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court erred in awarding summary judgment to the Department | Etzler argued the Department lacked authority to levy breeder’s awards located outside the county where its tax-warrant judgment was recorded and that his prior UCC filing had priority | Department argued its tax-warrant lien and statutory levy authority allowed it to seize the breeder’s awards notwithstanding county limits because the collection statute does not expressly limit levies to the county of record | Court held the Department’s judgment lien under Ind. Code §6-8.1-8-2(e) attached only to property “in the county” where recorded, so the Department lacked statutory authority to levy the out-of-county breeder’s awards and Etzler’s perfected UCC interest had priority; reversed summary judgment for Department and granted summary judgment to Etzler |
Key Cases Cited
- Manley v. Sherer, 992 N.E.2d 670 (Ind. 2013) (summary judgment standard and view of facts)
- Meredith v. Pence, 984 N.E.2d 1213 (Ind. 2013) (review limited to evidence designated to trial court)
- Asklar v. Gilb, 9 N.E.3d 165 (Ind. 2014) (cross-motions for summary judgment treated separately)
- Johnson v. Johnson, 920 N.E.2d 253 (Ind. 2010) (priority among liens governed by time of perfection)
- Moryl v. Ransone, 4 N.E.3d 1133 (Ind. 2014) (statutory construction reviewed de novo)
- Etzler v. Indiana Dep’t of State Revenue, 957 N.E.2d 706 (Ind. Tax Ct. 2011) (prior Tax Court dismissal for lack of jurisdiction in related matter)