United States v. Fulton Distillery, Inc.

JOHN R. BROWN, Chief Judge:

Fulton Distillery, Inc. (Fulton) engages in the spirited business of distilling liquor. To satisfy Bureau of Alcohol, Tobacco and Firearms (ATF) requirements for assurance of payment of excise taxes, Fulton obtained two surety bonds. After four of Fulton’s excise tax payment checks were dishonored the Government demanded payment from Fulton and its surety, Highlands Insurance Co. (Highlands) and Safeco Insurance Co. (Safeco), but the taxes remained unpaid and this action ensued. The District Court granted motions of summary judgment filed by the United States and by…