Cim International, a Utah Corporation v. United States

CIM International (CIM), alleged owner of an aircraft, appeals the grant of summary judgment upholding the seizure and sale of the aircraft in satisfaction of tax liens against Austin Milling Co., a Nevada Corporation (Austin), a third party taxpayer. We reverse and remand.

Background

The appeal being from a summary judgment, the facts set forth in the affidavits of record must be accepted as true.

On July 7, 1976 Austin bought a 1953 Beachcraft aircraft from Woodall Motor Company (Woodall), giving Woodall a promissory note for the entire $37,092.34 purchase price, secured by an agreement granting a security interest in the aircraft to Woodall. On July 26, 1976 Austin filed an ownership statement with the Federal Aviation Administration (FAA) in accordance with Section 1403 of the Federal Aviation Act of 1958, 49 U.S.C. § 1403 et seq. (Act).

On August 2, 1976 the Empire Savings Bank of Springfield, Missouri (Empire), having been assigned Woodall’s interest with recourse, filed with the FAA copies of Austin’s note, Woodall’s security agreement and Woodall’s assignment to Empire. On August 6, 1976, Empire filed a financing statement with the Secretary of State of Nevada…