F. P. Baugh, Inc., a California Corporation v. Little Lake Lumber Company, AKA Little Lake Lumber Co., a Partnership, United States of America

Appellant seeks to foreclose a chattel mortgage and deed of trust on certain property in California. The United States of America, respondent here, filed a counterclaim for foreclosure of an alleged tax lien. The lower court found for respondent and held that the notice of tax lien was sufficient to place a reasonable prudent person on inquiry and that if inquiry had been made, the person so inquiring would be inevitably led to the conclusion that the Government was claiming a lien on the property of all of the parties doing business as Little Lake Lumber Company and on the property of the partnership itself.

On the 23rd day of November, 1955, an assessment for Withholding and F.I. C.A. taxes was made by the respondent against C. E. McCulloch, Jr., H. W. Bryan and M. L. Kramer, dba Little Lake Lumber Company.

On January 13, 1956, the District Director of Internal Revenue caused a form designated “Notice of Federal Tax Lien Under Internal Revenue Laws” to be filed with the County Recorder of Mendocino County, California. On said date this instrument was indexed in the general index — grantors, defendants, etc., to Charles E. McCulloch and on another page of the index to Little…