United States First Circuit

In an interpleader action brought by a bank to determine the proper disbursement of a foreclosure surplus fund encumbered by tax liens, dismissal is reversed and remanded where: 1) the Eleventh Amendment is not offended by allowing a federal court to determine the relative priority of the federal and state tax liens; and 2) the district court should have stayed the Bank's request for relief vis-a-vis the state until after resolution of the lien issues, then remanded the matter back to state court once the Eleventh Amendment issue had dissipated.

Appellate Information

• Decided 03/05/2007
• Published 03/05/2007

Judges

• SELYA, Senior Circuit Judge., Before HOWARD, Circuit Judge, SELYA, Senior Circuit Judge, and SHADUR, Senior District Judge.

Court

• United States First Circuit

Counsel

• For Appellant:
  
• Randolph L. Hutter, Attorney, Tax Division, United States Department of Justice, with whom Eileen J. O'Connor, Assistant Attorney General, Thomas J. Clark, Attorney, Tax Division, and Michael J. Sullivan, United States Attorney, were on brief, for appellant.


• For Appellees:
  
• Thomas A. Barnico, Assistant Attorney General, with whom Thomas F. Reilly, Attorney General (Commonwealth of Massachusetts), and Eileen Ryan McAuliffe, Counsel, Department of Revenue, were on brief, for state appellee.