Jefferson Standard Life Insurance v. United States

This is an appeal from an order affirming the order of a referee in bankruptcy fixing and determining the respective rights and priorities of the appellant Jefferson Standard Life Insurance Company, the United States, and the Los Angeles County Tax Collector, in and to the proceeds of a trustee’s sale of all the assets of Stockholders Publishing Company, Inc., the bankrupt.

On December 31, 1954, the date of the petition in bankruptcy, the three priority claimants mentioned had liens upon all of the property, real and personal, of the named bankrupt. The lien which first attached was that of Jefferson Standard. On the date of the bankruptcy there was owing to it $351,223.74 secured by deed of trust and chattel mortgage upon all of the bankrupt’s property, which instruments were executed, filed and recorded December 1, 1945.

The lien next attaching was that of the United States for corporate income and excess profits taxes for the years 1943-44-45, with interest and penalties, in the sum of $288,608.58. This lien attached on March 14, 1952, when the local collector received the Commissioner’s assessment list.

Third in order of time was the claim of Los Angeles County for real and…