Litton Industrial Automation Systems, Inc. v. Nationwide Power Corp.

BIRCH, Circuit Judge:

The issue in this appeal is whether an unperfeeted security interest in interpleaded funds is entitled to priority over a competing federal tax lien. The district court held that the federal tax lien is entitled to priority. We affirm.

I. BACKGROUND

The facts in this appeal are essentially undisputed. Plaintiff Litton Industrial Automation Systems, Inc. (“Litton”) filed this interpleader action in the United States District Court for the Eastern District of Michigan, from which it was transferred to the United States District Court for the Middle District of Florida. Litton…