Dennis W. Hoornstra v. United States of America, and the State of Illinois

KANNE, Circuit Judge.

In this interpleader action, the United States of America and the State of Illinois raise competing claims to the funds of an escrow account. The district court granted summary judgment in favor of the United States. 764 F.Supp. 107. We reverse.

The relevant facts are not in dispute. Malcolm Quick contracted to buy from the Southwest Mini Mart Corporation (“Mini Mart”) all the assets of a Mini Mart store in Aurora, Illinois. The purchase price was $50,000. Of this amount, $25,000 was allocated for the broker’s commission and the store’s past due rent. The remaining…