Hardy v. United States

The federal government (defendant) levied on property owned by Cathy Hardy (plaintiff) and her husband Ray to collect Ray's unpaid federal income taxes. Cathy sued under the wrongful-levy statute, arguing the property was her separate property rather than community property subject to Ray's debts. She presented evidence that the down payment came from her prior divorce settlement and that she alone paid the mortgage from her own earnings, and both spouses submitted affidavits describing an oral agreement to keep their respective earnings separate. The government disputed that any such agreement existed and moved for summary judgment.