INTERWORKS SYSTEMS v. MERCHANT FINANCIAL CORP.

Docket No. 08-1425-cv.

604 F.3d 692 (2010)

INTERWORKS SYSTEMS INC., Debtor and Debtor-In-Possession, Individually and as Trustee for all Trust Beneficiaries under Article 3-A of the New York Lien Law, Plaintiff, United States of America, Intervenor-Plaintiff-Appellant, v. MERCHANT FINANCIAL CORPORATION, Defendant-Cross-Defendant-Appellee, Colonial Surety Company, Cross-Claimant-Appellee.

United States Court of Appeals, Second Circuit.

Decided: May 14, 2010.


Attorney(s) appearing for the Case

Andrea R. Tebbets (Kenneth W. Rosenberg, Attorney, Tax Division, Department of Justice, Benton J. Campbell, United States Attorney, Eastern District of New York, of counsel), for Nathan J. Hochman, Assistant Attorney General, Tax Division, Department of Justice, Washington, DC, for Intervenor-Plaintiff-Appellant.

Tab Rosenfeld, Rosenfeld & Kaplan, New York, NY, for Defendant-Cross-Defendant-Appellee.

Robert W. McCann (Richard J. Allen, Jr., of counsel) Klotz & McCann, New York, NY, for Cross-Claimant-Appellee.

Before: McLAUGHLIN, CALABRESI, and SACK, Circuit Judges.


SACK, Circuit Judge:

The United States appeals from a January 30, 2008, judgment of the United States District Court for the Eastern District of New York (Nina Gershon, Judge). The district court dismissed the United States' complaint-in-intervention in an action brought by Interworks Systems, Inc. ("Interworks") against Merchant Financial Corporation ("Merchant"). The underlying action by Interworks, originally filed in the Southern District of New York and...

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