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Case 3:13-cv-00099-RP-TJS Document 1-2 Filed 09/06/13 Page 1 of 8

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF IOWA

DAVENPORT DIVISION

THE WATTS FAMILY QUEENS DRIVE
RESIDENT TRUST,

Plaintiff,

v.

UNITED STATES OF AMERICA, concerning

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) Case No. 3:13-cv-00099
) (Formerly Equity Case No. 123614

Lot 72 in Candlelight Park Second Addition to the ) Iowa District Court for Scott County)
City of Bettendorf, Scott County, Iowa,

Defendant.

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NOTICE PURSUANT TO LOCAL RULE 81(a)

Pursuant to S.D. Iowa Local Rule 81(a), the United States of America attaches the

following information to its Notice of Removal.

1.

Local Rule 81(a)(1): Copies of process, pleadings and orders filed in state-court

action Watts Family Queens Drive Trust v. United States of America (Equity Case

No. 123614).

2.

Local Rule 81(a)(2): The following list of matters pending in Iowa state court that

will require resolution by this Court.

a.

Whether the United States possesses an interest in the property legally

described in the caption above and located at 1909 Queens Drive,

Bettendorf, Iowa (the “Property”).

b.

The United States may raise jurisdictional arguments, counter claims, and

allege, among other things, that Plaintiff Watts Family Queens Drive



Case 3:13-cv-00099-RP-TJS Document 1-2 Filed 09/06/13 Page 2 of 8

Resident Trust is an alter ego/nominee of James Watts, a sham trust, and

obtained the Property through a fraudulent transfer from James Watts.

3.

Local Rule 81(a)(3): The names of counsel and law firms that have appeared in

the Iowa state-court action.

a.

Richard A. Davidson
220 North Main Street., Ste 600
Davenport, Iowa 52801-1987
Telephone: (563) 324-3246
Fax: (563) 324-1616
E-mail: [email protected]
Attorney for Plaintiff

Dated: September 6, 2013.

s/: Jose A. Olivera
JOSE A. OLIVERA
Trial Attorney, Tax Division



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Case 3:13-cv-00099-RP-TJS Document 1-2 Filed 09/06/13 Page 3 of 8

IN THE IOWA DISTRICT COURT FOR SCOTT COUNTY

The Watts Family Queens Drive
Resident Trust

Plaintiff,

VS.

)
UNITED STATES OF AMERICA )
Conceming:
))
Lot72 in Candlelight Park Second )
Addition to the City of Bettendorf, )
Scott County, Iowa,
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Defendant.

Equity *" lz3b/r

ORIGINAL NOTICE

TO THE ABOVE-NAMED DEFENDANT(S):

You are hereby notified that there is now on file in the office of the clerk of the above

court a petition in the above-entitled action, a copy of which petition is attached hereto. The

name and address of the plaintiffs attorneys is Richard A. Davidson, Lane & Waterman LLP,

220 North Main Street, Suite 600, Davenport, Iowa 52801.

You are further notified that unless, within twenty (20) days after service of this original

notice upon you, you serve, and within a reasonable time thereafter file a motion or answer, in

the Iowa District Court for Scott County, at the courthouse in Davenport, Iowa, judgment by

default will be rendered against you for the relief dema

C. CAATTN

(seal)

OF THE

Scott County Courthouse
Davenport,Iowa 52801

Note: The attorney who is expected to represent the defendant should be promptly advised by defendant
of the service of this notice.
If you require the assistance of auxiliary aids or services to participate in court because of a disability,
immediately call your district ADA coordinator at 326-8607. (If you are hearing impaired, call Relay
Iowa TTY at l-800-735-294D.

Case 3:13-cv-00099-RP-TJS Document 1-2 Filed 09/06/13 Page 4 of 8

IN TFIE IOWA DISTRICT COURT FOR SCOTT COUNTY fl ' ,

vs.
UNITED STATES oF AMERICA
concerning,

TheWattsFamilyQueensDrive )
, - -t,4rUr;;j-frtr
Resident rrust'
i nqui,y *,. l77&f:1, :::t Fit 2' 57
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t
Scb';'r li.llnr..-
Plainriff,
--', t coort'it!,fpXnr
i
) PETITION TO QTITET TITLE
i
LotT2in Candleliglrt Park Second Addition to I
the City of Bettendorf, Scott County, Iow4 )
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Defendant.

COMES NOW, Plaintifl The Watts Family Queens Drive Resident Trust (the

"Trust"), by its attorneys, Lane & Waterman, LLP, and hereby states the following in support of

this Petition to Quiet Title pursuant to Iowa Code Chapter 649:

1. Plaintiffis a trust and is duly organized as a trust under the laws of the

State of Iowa.

2.

Defendant is the United States of America by and through the Internal

Revenue Service ("I.R.S.").

3.

Plaintiffbrings this action pursuant to Iowa Code Chapter 649 and

accordingly jurisdiction and venue are proper in this Court.
.

4.

Jurisdiction as to the I.R.S. is proper, and Defendant has waived sovereign

immunity under 28 U.S.C. $ 2a10(a)(1) and may be named a parlry to this Petition to Quiet Title

in this Court.

Case 3:13-cv-00099-RP-TJS Document 1-2 Filed 09/06/13 Page 5 of 8

5.

The Trust is the absolute owner in fee simple of the following real

property situated in Scott County, Iowa and more particularly described as follows (the

"Property"):

Lot72 in Candlelight Park Second Addition to the City ofBettendord, Scott
Countv.Iowa
6.

The Trust acquired title to the Property by Warranfy Deed dated

November 13, 2003 , filed on November 26, 2003 , and recorded as Document No. 2003-61022 in

the Office of the Recorder of Scott County, Iowa (attached hereto as Exhibit A).

7 .

On April 26,2013, due to unpaid taxes on the Property, the Scott County

Treasurer executed a Tax Sale Deed to Cook Funds Fifty-Two, LLC conveying the Property

(attached hereto as Exhibit B).

8.

However, on May 31,2013, Cook Funds conveyed the Property back to

the Trust by Quit Claim Deed recorded on May 31, 2013 as Document No. 2013-00016953 in

the Office ofthe Recorder of Scott County, Iowa (attached hereto as Exhibit C).

9.

Plaintiffis credibly informed and believes that Defendant claims some

interest in the Properry by virtue of a tax lien against James L. Watts, whose address is 2201 St.

Andrews Circle, Bettendorf, Iowa 527 22.

10. Defendant filed a Notice of Federal Tax Lien ("Tax Lien") against the

Trust dated October 5,2007, filed October 12,2007 and recorded as Document No. 2007-

00030864 in the Office of the Recorder of Scott County (attached hereto as Exhibit D).

11. The Tax Lien was filed by the St. Paul, Minnesota Revenue Office stating

that the Trust is the Transferee, Nominee, and/or Alter Ego of James L. Watts.

Case 3:13-cv-00099-RP-TJS Document 1-2 Filed 09/06/13 Page 6 of 8

1,2. On October 14,2011, Defendant filed aNotice of Lis Pendens in the

United States District Court for the Southern District of Iowa seeking to foreclose the federal tax

lien against the Property (attached hereto as Exhibit E).

13. The Defendant does not have any right, title or interest in or to the

Property, or any color of right, title or interest therein.

14. The Trust is the absolute and unqualified owner of a one hundred percent

$04%) interest in the Property by virtue of the Warranty Deed and Quit Claim Deed.

15. Defendant's claims are wholly without right but constitute clouds on

Plaintiffs title, which Plaintiffdesires to remove.

WHEREFORE, Plaintiffrequests that the Court:
1.

Enter a judgment quieting and confirming title to the Property solely in the

Trust.

in the Property.

2.

3.
4.

equitable.

Enter an order thatDefendant is forever barred from claiming any interest

Fix a time and place of hearing upon the Petition.

Order such other further equitable relief as the Court may deem just and

Case 3:13-cv-00099-RP-TJS Document 1-2 Filed 09/06/13 Page 7 of 8

LAIIE & WATERMAN LLP

By:

Richard A. Davidson
220 North Main St., Ste 600
Davenport, Iowa 52801 -1987
Telephone: (563) 324-3246
Fax: (563) 324-1616
E-mail : [email protected]

ATTORNEYS FOR PL{NTIFF

Case 3:13-cv-00099-RP-TJS Document 1-2 Filed 09/06/13 Page 8 of 8

srATE or flli,r,oi:

COUNTY OF

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) ss.
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James A. Watts, being first duly sworn upon oath, do depose and state that I am the Trustee of
the of the Plaintiffnamed in the foregoing Petition; that I am familiar with the business of the
Plaintiff; that I have read the above and foregoing Petition and am familiar with the contents
thereof and that the statements and allegations contained therein are true and correct to the best
of my knowledge.

WATTS FAMILY QUEENS DRIVE
RESID

TRUST

James A. Watts, Trustee

Queens Drive Residence Trust on this Zisf

Subscribed and sworn to me,by James A. {atts as,Trustee of Watts Family

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day of

ftr1uet

,2013.

(Notarial Seal)

Public