Fourth Investment LP v. United States

Appellants brought quiet title actions challenging tax liens filed by the IRS against certain commercial and residential properties. Appellants held legal title to these properties. The liens arose from assessments against taxpayers based on the IRS's claim that appellants held the relevant properties as nominees of taxpayers on the assessment dates. On appeal, appellants argued that California did not recognize nominee ownership. The court held, however, that California law did recognize a nominee theory of property ownership; the district court did not err in concluding that appellants held title to the McCall and Fourth properties as nominees of taxpayers; and the district court rejected appellants' joinder claim under Federal Rule of Civil Procedure 19(a) where appellants have not established that the absent entities at issue were necessary parties under Rule 19(a) and the district court properly resolved appellants' ownership interests in the McCall and Fourth properties in their absence. Accordingly, the court affirmed the judgment. View "Fourth Investment LP v. United States" on Justia Law