E.J. Friedman Company, Inc. v. United States
Opinion
Opinion
Wiggins, J.
OVERVIEW
E.J. Friedman Company, Inc. (“Friedman”) brought an action in district court to compel the United States to discharge a federal tax lien encumbering several parcels of property. Friedman advanced several theories to support its request for relief. The district court dismissed all of Friedman’s claims. Friedman appeals, and we affirm.
FACTS AND PRIOR PROCEEDINGS
Berkshire Dallas, Inc. (“Berkshire”) purchased a parcel of property on which it planned to build 56 homes in two phases. Sterling Savings and Loan Association (“Sterling”) made two loans to Berkshire, one in the amount of $695,000 (“Land Loan”), which partially financed Berkshire’s purchase of the property, and another in the amount of $2,083,000 (“Construction Loan”), which was to finance construction of the first twenty-six homes in the project. The loans were secured by first and second deeds of trust on the property.
Friedman also made two loans to Berkshire. The first, in the amount of $470,000, was for purchase of the property. Later, Friedman loaned Berkshire an additional $200,000. Both loans were secured by deeds of trust on the property, which were subordinate to Sterling’s deeds of trust.