William O. Douglas

“ Respondents are bona fide purchasers of real property located in Livingston County, Michigan. Their purchase was made in August 1960 from one Donnelly, against whom the United States had acquired a tax lien in 1950. By § 3672 of the Internal Revenue Code of 1939 that lien is not valid against a purchaser until notice thereof is filed in the office 'authorized' by state law. Where state law 'authorized' no such office, notice of lien was to be filed in the office of the United States District Court for the judicial district in which the land is located. ”

“ The past cannot always be erased by a new judicial declaration. The effect of the subsequent ruling as to invalidity may have to be considered in various aspects,-with respect to particular relations, individual and corporate, and particular conduct, private and official. ”

“ The United States refused to be bound by the requirement of Michigan law regarding a 'description of the land' and filed notice of lien in the District Court.
Hence a title search in the accustomed way revealed no notice of lien clouding Donnelly's title. Hence respondents purchased the land innocently and in good faith. Thereafter, on March 20, 1961, the United States filed its notice of lien with the register of deeds of Livingston County, as required by Michigan law. ”