United States District Court, S.D. Ohio, Eastern Division
WILLIAM C. HAYES DBA HAYES LAW OFFICE, Plaintiff,
MELINDA BROWN, WILLIAM WESLEY SCOTT HIGGINS, INTERNAL REVENUE SERVICE, OHIO DEPARTMENT OF TAXATION, OHIO ATTORNEY GENERAL, and UNITED STATES OF AMERICA, Defendants.
WILLIAM C. HAYES DBA HAYES LAW OFFICE C. DANIEL HAYES (OH
0073620), Counsel for the Plaintiff
DEWINE, ATTORNEY GENERAL OF OHIO Moran N. Nusbaum (OH
0085194) Counsel for the Defendant Ohio Department of
A. HUBBERT Acting Assistant Attorney General Tax Division,
U.S. Department of Justice PHILIP LEONARD BEDNAR Trial
Attorney, Tax Division U.S. Department of Justice, Counsel
for the Defendant United States of America.
Terence P. Kemp, Judge.
Michael H. Watson U.S. District Court Judge.
the Clerk of the Court's entry of default against
Defendants Melinda Brown and William Wesley Scott Higgins
(Docket No. 34) for their failure to answer or otherwise
defend in this action, and the Joint Motion For Default
Judgment, the Court hereby orders that Defendants Melinda
Brown and William Wesley Scott Higgins shall not be entitled
to any part of the $7, 433.17 which Plaintiff deposited with
the Licking County Common Pleas Court registry. The Court
further orders that the $7, 433.17 shall be distributed as
described in the attached Stipulation Regarding Priority of
Liens and Distribution.
REGARDING PRIORITY OF LIENS AND DISBURSEMENT
William C. Hayes d/b/a Hayes Law Office, Defendant
Ohio Department of Taxation, and Defendant United States of
America (collectively, the "Moving Parties"),
stipulate and agree to the following:
October 29, 2013, Plaintiff filed an interpleader complaint
in Licking County Common Pleas Court and paid into the
registry of that Court funds in the amount of $7, 433.17
("Funds") resulting from the liquidation of
Defendant Higgins's 401(k) plan account which was used to
fund a settlement with Defendant Brown. Plaintiff represented
Defendant Brown in the litigation and the negotiation of the
settlement. Plaintiff held back the Funds at issue because
upon information and belief, the administrator of the 401(k)
plan did not withhold sufficient funds for Defendant
Higgins's federal and state income tax liabilities
associated with the account liquidation, and it was
uncertain, as between the Defendants, who was entitled to the
Funds. Plaintiff delivered two checks to a representative of
Defendant Higgins, who was incarcerated at the State
Penitentiary at the time of distribution: (1) a check in the
amount of $6, 196.00 for federal income taxes, and (2) a
check in the amount of $1, 237.17 for state income taxes.
Neither check was ever deposited or cashed. The Plaintiff
requested that the Court determine the rights of the
Defendants to the Funds and otherwise relieve it from
liability as to the Funds.
November 27, 2013, the United States removed Plaintiffs
action to the United States District Court for the Southern
District of Ohio.
January 3, 2014, the United States filed its answer with this
February 14, 2014, the State of Ohio filed its answer with
February 17, 2017, this Court entered default against
Defendants Melinda Brown and William Wesley Scott Higgins.
March 15, 2017, the Moving Parties jointly moved for default
judgment against Defendants Melinda Brown ...