Petty Motor Co. v. United States

Background

A company and the Government disputed whether a United States Marshal’s handling of a judicial foreclosure sale counts as “seizing or levying” under a federal fee law, 28 U.S.C. §1921. The Tenth Circuit held that a marshal’s foreclosure sale does count, which would allow marshal fees to be taxed. The Government acknowledged this ruling conflicts with three other federal appeals courts that reached the opposite conclusion.

Reasoning

The Supreme Court was asked to decide whether to review that conflict among appeals courts. The Court declined to take the case and denied review, leaving the Tenth Circuit’s decision in place. Justice White, joined by the Chief Justice, dissented from the denial and said the Court should have granted review to resolve the disagreement between circuits.

Real world impact

Because the Supreme Court declined review, the Tenth Circuit’s view that marshal fees can be taxed after judicial foreclosure sales stands in that circuit, while other circuits remain able to follow their opposite rulings. The split among appeals courts therefore continues, meaning whether marshal fees can be taxed in foreclosure cases depends on which federal circuit governs the case. The denial is procedural, not a final ruling on the legal issue by the Supreme Court.

Dissents or concurrances

Justice White’s dissent—which the Chief Justice joined—expressly urged the Court to grant review to resolve the circuit conflict identified in the Government’s concession.