The opinion of the court was delivered by: KNOX
This is an action of interpleader filed by the plaintiff Conventry Care, Inc., a Pennsylvania business corporation, which has paid into court pursuant to order dated September 15, 1972, the sum of $57,750 which sum represents the two notes hereinafter mentioned, one for $35,000 and the other for $20,000 plus interest thereon. The purpose of the interpleader was to determine the rights of the various parties to the proceeds of said notes. By order of this court, the claims of David Sage, Inc. a New York corporation and the United States of America as to their respective priorities in this fund were assigned for hearing first before a determination of the other claims. Hearing on the claims of these two parties was duly held before the court non-jury on August 2, 1973, at which time testimony was taken. As a result thereof, the court makes the following findings of fact with respect to the claim of David Sage, Inc. and the United States of America.
(Claims of David Sage, Inc., and United States of America)
1. On May 6, 1971, Coventry Care, Inc. (Coventry) issued a $20,000 promissory note to Contemporary Institute, Inc. (Contemporary) as part consideration for the purchase of a subsidiary of Contemporary. The $20,000 note was assigned by Contemporary to Western Pennsylvania National Bank (WPNB) on May 21, 1971.
2. On May 6, 1971, Conventry also issued a $35,000 promissory note to Contemporary as part consideration for the purchase of a subsidiary of Contemporary. The note was assigned by Contemporary to the United States Internal Revenue Service on May 21, 1971.
3. The $35,000 note has been in the possession of the Internal Revenue Service since this assignment on May 20, 1971, until it was placed in the custody of the court as Government's Exhibit 11, which was moved into evidence.
4. The assignments by Contemporary mentioned in Paragraphs 1 and 2 were executed by Robert C. Braumuller, the President and Chief Executive Officer of Contemporary on May 20, 1971. They were dated May 21, 1971. Braumuller resigned his offices on May 24, 1971.
5. The $20,000 note was assigned by Contemporary to WPNB to secure an obligation of Contemporary owed to the bank.
6. On the dates set forth below, a delegate of the Secretary of the Treasury made assessments in accordance with law against the taxpayer, Contemporary Institute, Inc. for unpaid withholding and Federal Insurance Contributions Act taxes, penalties and interest in the amount of $47,111.76. The aforementioned assessments are more fully described hereinbelow:
Taxable Demand &
Quarter Assessment Tax Penalty
Ending Date Assessed Assessed
3-31-71 6-4-71 $25,148.69 n2 $1,257.43
6-30-71 8-6-71 15,961.05 n1 798.05
Taxable Failure Balance
Quarter Interest to Pay as of
Ending Assessed Penalty 12-31-72
3-31-71 146.41 $2,124.53 $29,576.04
6-30-71 15.64 n4 1,408.47 19,255.16
Lien Fees 8.50
Total n5 $48,839.70
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