Feiler

Appellants Jeffrey and Kathy Feiler, as well as their law firm, appeal the district court’s grant of summary judgment against them in their wrongful levy action. The Feilers won a decree of specific performance on their contract to purchase a house, and pursuant to that contract the state court judgment also awarded them attorneys’ fees. Prior to the date of the state court judgment, however, the IRS recorded a tax lien on the sellers’ assets. After payment of the recorded first and second trust deeds, the seller’s remaining proceeds from the sale of the house cannot satisfy the claims of both the Feilers and the IRS. The IRS has subsequently levied on the funds. The Feilers argue that the levy is wrongful because their claim for attorneys’ fees should take priority over the federal tax lien.

*316 Acting pursuant to an agreement between the parties, the district court adjudicated the dispute on cross-motions for summary judgment and found for the IRS. We find that federal law gives the IRS levy priority over the Feilers’ claim and affirm.

Background

In June 1985, appellants Kathy and Jeffrey Feiler agreed to buy a single-family home in Los Angeles from Egzine and Robert…