United States v. S. M. Sage, Trustee in Bankruptcy for Guy O. Foss, National Bank of Commerce of Seattle and John Maddex

This is an action in interpleader brought by the United States to determine the rights of John Maddex and of S. M. Sage, trustee in bankruptcy for Guy 0. Foss. Each claims the surplus proceeds of about $7,500 from the tax sale of Foss’s yacht “Princess Mary,” sold by the Internal Revenue Service to Maddex for $27,500, pursuant to 26 U.S.C. § 6335.

The government’s tax lien was junior to a mortgage held by Marc Venable. Maddex paid $15,000 to Venable to discharge the senior mortgage, and $27,500 to the government, out of which the IRS satisfied its tax lien and paid the costs of sale, totalling…