United States v. Redevelopment Agency of City of Oakland

OPINION AND ORDER

The United States of America (the “government”) brought this action seeking to recover certain funds belonging to taxpayer Raymond Castor (“Castor”) but now in the possession of defendant Redevelopment Agency of the City of Oakland (the “Agency”). The funds at issue are rents collected by a receiver on real property owned by Castor before it was purchased by the Agency on June 10, 1993. The Internal Revenue Service (“IRS”) served levies on both the receiver and the Agency for the funds that were not honored.

The Agency brought a motion to dismiss and motion for summary judgment on the grounds that the government cannot demonstrate any entitlement to the rents that are the subject of this action. The government brought a cross-motion for partial summary judgment on its claim that the Internal Revenue Service (“IRS”) perfected its lien before the Agency. For the reasons hereinafter stated, the Agency’s motions are denied, and the government’s motion is granted.

I.

Castor owned real property located on Alice Street in the City of Oakland, County of Alameda. On August 5,1986, Castor entered into a twenty-year written lease of this property with the City of…