Henry G. Runkel, Jr., Trustee of the Estate of Henry G. Runkel and of the Estate of Rosalie H. Runkel v. United States

On November 17, 1969, Henry G. Runkel sold to Hill & Dale, Inc. the real property involved in this action. The sale was pursuant to a real estate sales contract which was recorded in King County, Washington, on December 9, 1969. The contract provided that the purchase price was to be paid in semi-annual installments of $3,000, that legal title was to remain in the sellers until the payment was completed, and that upon the default of any installment payment, the sellers could .declare the purchaser’s interest in the property forfeit. Plaintiffs succeeded to the sellers’ interest in the fall of 1970. Hill & Dale failed to make the installment payment due on December 9, 1971. The plaintiff notified Hill & Dale on April 12, 1972, of his intent to declare a forfeiture and on May 17, 1972, notified the purchaser of the declaration of forfeiture.

The government had made assessments for withholding and FICA taxes against Hill & Dale and demanded payments in the amounts of $2,122.46 on March 26, 1971; $1,933.35 on June 22, 1971; $1,622.66 on September 14, 1971; and $108.44 on April 3, 1972.

On July 19, 1972, plaintiff filed a quiet title action in state court seeking to…