USA v. West et al

UNITED STATES DISTRICT COURT
DISTRICT OF NEW HAMPSHIRE
United States of America
v. Civil No. 22-cv-232
David H. West, New Residential
Mortgage, LLC, and the
Town of Hampton Falls
Final Judgment
This is a civil enforcement action by the United States to reduce to judgment the
amount of unpaid taxes with penalties and interest owed by David H. West, to establish
the validity of the tax liens on West’s property, and to enforce the tax liens against
West’s property. Defendant New Residential Mortgage, LLC is in default. The United
States and defendants David H. West and the Town of Hampton Falls have filed a joint
stipulation and a supplemental stipulation and move for entry of final judgment in Doc.
nos. 77 and 79.
The court previously denied West’s motion for summary judgment and granted
summary judgment in favor of the United States on Count I of the complaint, holding that
the United States had established that it is entitled to judgment that West owed
$409,855.68 in taxes, penalties, and interest as of July 17, 2023, with statutory interest
and penalties continuing to accrue. Doc. no. 57. A bench trial was scheduled to begin on
November 15, 2023, before the parties filed a joint stipulation and motion to cancel the
trial.
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New Residential Mortgage, LLC. The court entered default against New
Residential on September 28, 2022. Doc. no. 11. The United States moved for default
judgment against New Residential Mortgage, LLC, which was referred to the magistrate
judge. The magistrate judge recommends granting default judgment. Doc. no. 68. The
court accepts and adopts the report and recommendation. Id. Default judgment is entered
against New Residential as provided in the report and recommendation. Id. at 8.
Town of Hampton Falls, New Hampshire. The town signed the joint and
supplemental stipulations, but there do not appear to be provisions in either document
that pertain to the town. As such, the court interprets the town’s agreement to the
stipulation to mean that the town claims no right or interest in West’s property that is
subject to the United States’s tax liens and that the town does not oppose the United
States’s intent to enforce the tax liens against West’s property.
Stipulation. To the extent the parties have agreed to certain matters in their joint
stipulation and supplement (doc. nos. 77 and 79), that agreement is between them and
does not bind the court. The court declines to retain jurisdiction in this case for purposes
of reviewing a possible sale of West’s property and depositing the sale proceeds in the
court registry. West has reserved issues for appeal, as stated in the stipulation. The court
takes no position on the appealability of those matters.
Stay. The United States “stipulates” that the court’s judgment in this case will be
stayed if West files a timely appeal, with certain exceptions. Doc. no. 77, at 2. The
parties’ stipulation as to a stay is not binding on the court.
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“A stay is not a matter of right, even if irreparable injury might otherwise result.”
Nken v. Holder, 556 U.S. 418, 433 (2009) (internal quotation marks omitted). Instead,
the court may grant a request for a stay pending appeal as “an exercise of judicial
discretion,” depending on the circumstances in the case and after considering four
factors: (1) whether the moving party made a strong showing of a likelihood of success
on the merits, (2) whether the party will be irreparably harmed without a stay, (3)
whether a stay will substantially injure other interested parties, and (4) the public interests
in a stay. Boston Parent Coalition for Academic Excellence Corp. v. School Committee
of City of Boston, 996 F.3d 37, 44 (1st Cir. 2021). The first two factors are the most
critical. Nken, 556 U.S. at 434.
Although the parties have not addressed the above factors, the court interprets the
stipulation as a motion for a stay by West, to which the United States does not object.
Should the court receive no filing to the contrary by December 8, 2023, it will grant the
motion to stay.
Conclusion
David H. West is indebted to the United States of America for federal income
taxes for tax years 1999, 2009, 2012, 2013, and 2014 inclusive of penalties and interest
and statutory additions in the total amount of $409,855.68 as of July 17, 2023, plus
interest at the rates provided under 26 U.S.C. § 6621 as incorporated by 28 U.S.C.
1961(c)(1). The IRS has demanded payment from West for tax liabilities assessed by the
IRS for the 1999, 2009, 2012, 2013, and 2014 tax years. West owns the real property
located at 21 Evergreen Road, Hampton Falls, New Hampshire, that is the subject of the
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United States’ complaint. The United States has valid and subsisting federal tax liens for
federal income tax liabilities, stated above, encumbering all property or rights to property
of David H. West pursuant to 26 U.S.C. § 6321 and may enforce the liens against the real
property located at 21 Evergreen Road, Hampton Falls, New Hampshire, that is legally
described in paragraph 5 of the Complaint (doc. no. 1).
Any mortgage or other lien held by New Residential Mortgage, LLC is inferior
and junior to the federal tax liens, and New Residential Mortgage, LLC has waived any
right to assert a claim of priority to proceeds from any judicially ordered sale of West’s
real property.
The United States’s motion for default judgment (doc. no. 47) is granted as
provided in the magistrate judge’s report and recommendation (doc. no. 68) which is
accepted and adopted. The motion for reconsideration (doc. no. 55) was granted by the
subsequent report and recommendation (document no. 68), and the endorsed report and
recommendation (dated August 22, 2023) is terminated. The parties’ joint motion for
final judgment (doc. no. 79) is granted to the extent provided in this order and is
otherwise denied.
The clerk of court shall enter judgment accordingly and close the case.
SO ORDERED.
Joseph N. Laplante
United States District Judge
Dated: December 6, 2023
cc: David H. West, pro se.
Counsel of record.
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