Joseph F. and Caroline Enos - Page 33

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         jurisdiction, final judgment on the merits, and the same cause of            
         action.  See Hambrick v. Commissioner, 118 T.C. 348, 351 (2002);13           
         see also Commissioner v. Sunnen, supra at 597 (quoting Cromwell              
         v. County of Sac, 94 U.S. 351, 352 (1877)).                                  
              In DeHart v. United States, supra, the issue was whether the            
         United States was required to pursue petitioners’ assets to                  
         satisfy the tax liability underlying the Commissioner’s claim,               
         which arose from the August 15, 1978, notice of levy, before                 
         pursuing the bankruptcy estate’s assets to satisfy petitioners’              
         tax liability.  The bankruptcy court decided that the                        
         Commissioner did not have to pursue petitioners’ assets before               
         seeking the assets of the bankruptcy estate to satisfy                       
         petitioners’ tax liability.14  The causes of action in DeHart and            


               13In Hambrick v. Commissioner, 118 T.C. 348, 351 (2002), we            
          observed:                                                                   
               The general principle of res judicata is that once a court             
               of competent jurisdiction has entered a final judgment on              
               the merits of a cause of action, the parties to the suit and           
               their privies are bound to each matter that sustained or               
               defeated the claim, and as to any other matter that could              
               have been offered for that purpose. * * *                              
               14In DeHart v. United States, 50 Bankr. 685, 688 (Bankr.               
          M.D. Pa. 1985), the bankruptcy court held:                                  
               For these reasons we find that the doctrine of the                     
               marshalling of assets simply cannot be applied to the                  
               facts of this case.  While we do not agree that there                  
               is a lack of equity in affording the Government a                      
               priority status in this case, we nonetheless realize                   
               that the estate, and more particularly the general                     
               creditors, do suffer a detriment by the IRS levy.  We                  
               have determined that the plaintiff’s alternative                       
                                                             (continued...)           




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