Jorge Hedderick, Jr. v. Edgar W. Richards and United States of America

This action was brought by appellant in the United States District Court for the Southern District of California to collect on a promissory note executed by appellee Richards. The United States was made a party defendant pursuant to 28 U.S.C. § 2410 (a).

On July 23, 1957, assessments in substantial amounts for unpaid taxes were made against Henry Albachten, payee of the note. Notices of the liens were filed on July 26, 1957, in Ashland, Oregon, Albachten’s residence, and a notice of the liens was served on Richards on September 13, 1957.

Prior to the delivery of the note by Richards to Albachten and subsequent to the filing of the tax liens, Albachten assigned all his interest in the note to appellant Hedderick by a separate written document executed in Mexico. On or about December 17, 1957, Albachten delivered the note to Hedderick in Guadalajara, Mexico. Appellant did not contact Richards in regard to the note until May of 1961, shortly before it came due, at which time Richards advised appellant that he could not pay appellant until the tax liens were satisfied. This action resulted and the United States prevailed.

The controlling issue is whether the prior recording of the…