United States Supreme Court
507 U.S. 447 (1993)
The Internal Revenue Service (IRS) (creditor) assessed the McDermotts (debtors) for unpaid federal taxes. The IRS created a federal tax lien on all of the McDermotts’ current and after-acquired property. The McDermotts were also in debt to Zions First National Bank (creditor). The bank obtained a judgment against the McDermotts on all of their current and after-acquired property. The bank filed notice of the judgment lien on July 6. The IRS filed notice of the federal tax lien on September 9. On September 23, the McDermotts acquired a parcel of real property. The IRS, the bank, and the McDermotts entered into an escrow agreement. Under the agreement, the IRS and the bank released any claim on the real property but reserved their rights to the cash proceeds of the sale based on their priority as of the date the McDermotts acquired the property. The McDermotts brought an interpleader to determine the priorities. The district court granted priority in the property to the bank's lien and the court of appeals affirmed.
Rule of Law
Holding and Reasoning (Scalia, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 221,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.