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Hardy v. United States

United States District Court for the District of Nevada
918 F. Supp. 312 (1996)


Facts

The United States government (defendant) levied against property owned by Cathy Hardy (plaintiff) and her husband Ray Hardy in order to satisfy Ray’s federal income-tax delinquencies. Cathy filed suit against the government under the wrongful-levy statute, contending that the property was her separate property, not community property, and thus not subject to levy for Ray’s debts. The government moved for summary judgment. Cathy presented evidence that the down payment made on the land was funded by a divorce settlement from her previous marriage, and that she paid the mortgage with money she herself earned. Cathy and Ray each filed affidavits describing an oral agreement between them that each of their earnings retain the character of “separate property.” The government contested the existence of such an oral agreement.

Rule of Law

Issue

Holding and Reasoning (Reed, J.)

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