United States wins foreclosure and lien priority on Statesboro property after defaults

United States v. Elerson, No. CV 624-051, 2025 BL 316814 (S.D. Ga. Sept. 05, 2025), Court Opinion

On September 5, 2025, the U.S. District Court for the Southern District of Georgia granted the United States’ motions for default judgment and summary judgment in United States v. Elerson.

The order authorizes foreclosure of federal tax liens on 205 Donehoo Street, Bulloch County, Georgia, and sets the sequence for paying sale proceeds.
The Clerk was directed to enter judgment for the Government and close the case.

Why It Matters

The case shows how federal tax liens attach to real property and can be foreclosed when the United States holds a prior judgment and named lienholders do not defend.

It also illustrates how priority among competing encumbrances is resolved through stipulations, defaults, and state law rules on judgment lien renewal.

Key Facts

• Parties: United States (Plaintiff) vs. James Harvey Elerson, Jr., plus multiple lien claimants, including the Georgia Department of Revenue, City of Statesboro, Bulloch County Tax Commissioner, Synovus Bank, and Pierside Boatworks, Inc.

• Property: 205 Donehoo Street, Bulloch County, Georgia.

• Underlying liabilities: Default judgment entered in a 2018 Middle District of Georgia case against Elerson and his wife for unpaid income taxes for 2007 through 2012; against Elerson for unpaid employment taxes for quarters ending June 30, 2010 to September 30, 2011; and trust fund recovery penalties for periods ending June 30, 2013 through March 31, 2015 and September 30, 2015 through March 31, 2016.

• Amounts: Prior default judgment total was $923,101.97 plus interest. IRS declaration placed Elerson’s total as of January 31, 2025, at $1,274,268.21, including interest.

• Encumbrances recorded: Federal filings between February 2009 and August 2024; GDOR filings in May 2008, February 2010, June 2013, and January 2018; Pierside writ in May 2013; Synovus writ in November 2016; Bulloch County Tax Commissioner writs in March 2022, June 2023, and May 2024; City of Statesboro lis pendens in October 2023.

• Stipulations: Bulloch County Tax Commissioner has priority over the United States; federal liens are superior to the City’s interests; GDOR disclaimed any claim to proceeds.

• Defaults: Elerson, Synovus, and Pierside failed to respond; the Clerk entered defaults in October 2024.

• Disposition: Court granted the Government’s motions; GDOR’s joint request to be excused was denied as moot.

Timeline

• April 9, 1990: Elerson acquires the property by warranty deed.

• May 2008 to August 2024: Multiple encumbrances recorded by federal and local entities, plus private judgment creditors.

• November 2, 2018: United States files suit in the Middle District of Georgia against Elerson and his wife for unpaid federal liabilities.

• 2019: Default judgment entered for $923,101.97 plus interest.

• August 21, 2024: Present enforcement action filed in the Southern District of Georgia to foreclose liens on 205 Donehoo Street.

• August 27–30, 2024: Service on Synovus in Georgia and Pierside in South Carolina.

• October 2, 2024: Clerk enters default as to Synovus and Pierside; Government moves for default judgment on October 8, 2024.

• October 11, 2024: Clerk enters default as to Elerson.

• February 11, 2025: Government files unopposed motion for summary judgment.

• September 5, 2025: Court grants default and summary judgment, sets priority, and closes the case.

Court Findings

• The Court had subject matter jurisdiction under 28 U.S.C. § 1345 and venue under 28 U.S.C. § 1391(b)(2).

• The Court had personal jurisdiction over Synovus based on service in Georgia and over Pierside under Georgia’s long-arm statute due to its Georgia judgment lien tied to the property in Bulloch County and fairness factors supporting jurisdiction.

• Defendants who defaulted are deemed to admit well-pleaded factual allegations in the complaint.

• Federal tax liens under 26 U.S.C. §§ 6321 and 6322 attached to the property once assessments occurred and continued until satisfied or unenforceable.

• The United States is entitled to foreclose under 26 U.S.C. § 7403 because it obtained a prior default judgment and appropriately named all parties with potential interests per § 7403(b).

• Priority of sale proceeds is established: costs of sale, then Bulloch County Tax Commissioner under the parties’ stipulation, then the United States.

• Synovus and Pierside take nothing from sale proceeds due to defaults and failure to renew their judgment liens within seven years; Pierside also did not revive its judgment by scire facias within three years after the seven-year period expired.

• GDOR disclaimed interest and was therefore not entitled to proceeds; its request to be excused was moot once judgment was entered.

Judgment Details

• Motions granted: Government’s stipulation of dismissal of GHEAC; motion for default judgment against Synovus Bank and Pierside Boatworks, Inc.; motion for summary judgment.

• Motions denied as moot: Joint motion by the Government and GDOR to excuse GDOR’s further participation.

• Distribution of sale proceeds: Costs of sale; Bulloch County Tax Commissioner pursuant to stipulation; United States.

• Clerk directives: Terminate pending motions, enter judgment for the Government, and close the case.

• Amounts acknowledged: Prior default judgment for $923,101.97 plus interest; IRS declaration of $1,274,268.21 owed as of January 31, 2025, including interest.

Outcome

The Court entered judgment for the United States, authorized foreclosure of federal tax liens on the property, and closed the case.

The Takeaway

Federal tax liens can be foreclosed through a separate enforcement action naming all interested parties, and junior lienholders' failure to respond or maintain state judgment liens can eliminate their claims to sale proceeds.
Priority can be resolved through stipulations and defaults, which the Court can incorporate into the final distribution order.

Citations

• 28 U.S.C. § 1345: Establishes federal jurisdiction over civil actions commenced by the United States.

• 28 U.S.C. § 1391(b)(2): Venue is proper where the subject property is located.

• 26 U.S.C. § 6321: Creates a federal tax lien upon all property of a taxpayer who fails to pay assessed tax.

• 26 U.S.C. § 6322: States the lien arises at assessment and continues until the liability is satisfied or unenforceable.

• 26 U.S.C. § 7403(a), (b): Authorizes civil actions to enforce tax liens and requires joinder of all parties claiming an interest.

• Fed. R. Civ. P. 55(b)(2): Governs entry of default judgment; cited for default standards.

• Fed. R. Civ. P. 56(a): Sets summary judgment standard.

• L.R. 7.5, SDGa.: Nonresponse indicates no opposition; applied to unopposed motions.

• L.R. 56.1, SDGa.: Uncontroverted material facts are deemed admitted and applied to the government’s statement.

• Surtain v. Hamlin Terrace Foundation, 789 F.3d 1239 (11th Cir. 2015): Provides default-judgment framework.

• Eagle Hospital Physicians, LLC v. SRG Consulting, Inc., 561 F.3d 1298 (11th Cir. 2009): Explains effect of default on factual allegations.

• Aero Toy Store, LLC v. Grieves, 279 Ga. App. 515, 631 S.E.2d 734 (Ga. Ct. App. 2006): Georgia long-arm statute test for transacting business; applied to Pierside.

• Licciardello v. Lovelady, 544 F.3d 1280 (11th Cir. 2008): Personal jurisdiction fairness factors; used for Pierside analysis.

• World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (1980): Due process and fair play in personal jurisdiction; forms part of the fairness analysis.

• Celotex Corp. v. Catrett, 477 U.S. 317 (1986): Summary judgment burdens.

• Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986): Materiality and credibility rules at summary judgment.

• Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (1986): Inferences for nonmovant at summary judgment.

• Waddell v. Valley Forge Dental Associates, Inc., 276 F.3d 1275 (11th Cir. 2001): Genuine dispute standard.

• United States v. Four Parcels of Real Property, 941 F.2d 1428 (11th Cir. 1991) (en banc): Movant’s burden when bearing proof at trial.

• Mann v. Taser International, Inc., 588 F.3d 1291 (11th Cir. 2009): Court must review merits even if motion is unopposed.

• United States v. 5800 SW 74th Ave., 363 F.3d 1099 (11th Cir. 2004): Confirms need to find no genuine issue of material fact.

• United States v. Spoor Trust of Louise Paxton Gallagher Revocable Trust, 838 F.3d 1197 (11th Cir. 2016): Describes operation of federal tax liens.

• United States v. Mandras, No. 6:20-cv-164, 2021 WL 3508090 (M.D. Fla. Mar. 10, 2021): Defaulted junior lienholders take nothing; cited as analogous authority.

• United States v. Cornwell, No. 6:18-cv-2194, 2020 WL 674092 (M.D. Fla. Feb. 11, 2020): Similar default-judgment relief in lien foreclosure actions.

• Senn Brothers, Inc. v. Heavenly Produce Palace LLC, No. CV 119-196, 2020 WL 2115805 (S.D. Ga. May 4, 2020): Court must ensure subject matter and personal jurisdiction before default.

• Griffith v. Wainwright, 772 F.2d 822 (11th Cir. 1985) (per curiam): Notice requirements for pro se parties on summary judgment; the Clerk provided the required notice here.