Christiana Trust as Custodian GSRANZ LLC Deposit Account v. Ciota
| Docket Number: | 2018-CA-00906-COA Linked Case(s): 2018-CA-00906-COA |
|
| Court of Appeals: |
Opinion Link Opinion Date: 11-05-2019 Opinion Author: Carlton, P.J. Holding: Affirmed in part, remanded in part. |
|
| Additional Case Information: |
Topic: Real property - Tax sale - Section 27-43-1 - Section 27-43-3 - Notice to property owner - Redemption period - Damages - Section 27-5-3 Judge(s) Concurring: Barnes, C.J., Greenlee, Westbrooks, Tindell, McDonald, Lawrence, McCarty and CWilson, JJ. Concur in Part, Concur in Result 1: JWilson, P.J. Procedural History: Bench Trial Nature of the Case: CIVIL - REAL PROPERTY |
|
| Trial Court: |
Date of Trial Judgment: 05-24-2018 Appealed from: HARRISON COUNTY CHANCERY COURT Judge: HON. JENNIFER T. SCHLOEGEL Disposition: Chancery Court voided Trust's tax-sale purchase of real property. Case Number: 24CH1:16-cv-02643-JS |
|
| Party Name: | Attorney Name: | Brief(s) Available: | ||
| Appellant: | Christiana Trust as Custodian GSRAN-Z LLC Deposit Account |
WILLIAM ALEX BRADY II, MICHELLE ELIZABETH LUBER |
|
|
| Appellee: | Megan A. Ciota | LEWIE G. “SKIP” NEGROTTO IV | ||
Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
|
| Topic: | Real property - Tax sale - Section 27-43-1 - Section 27-43-3 - Notice to property owner - Redemption period - Damages - Section 27-5-3 |
| Summary of the Facts: | DDD Properties LLC executed a warranty deed conveying real property to Christopher B. Schultz and his wife, Megan A. Ciota. The warranty deed lists Schultz and Ciota as “Christopher B. Schultz and wife, Megan A. Ciota.” However, the Real Property Tax Rolls for Harrison County lists Schultz and Ciota as “Schultz Christopher B & Megan A C.” Schultz and Ciota failed to pay ad valorem taxes on the property for the 2013 tax year. As a result, Christiana Trust acquired the property at a tax sale. Ciota is a Louisiana resident. The chancery clerk sent Ciota a notice of forfeiture via certified mail to her New Orleans address. The notice was addressed to “Schultz Megan A C.” The record shows that Ciota received and signed for this notice. The chancery clerk also published notice of forfeiture in the Sun Herald newspaper in the name of “Schultz Christopher B & Megan A C.” Per the requirements set forth in section 27-43-3, the notice mailed to Ciota and the notice by publication contained a legal description of the land. Ciota failed to redeem the property within the statutory period. After the redemption period expired, the chancery clerk executed an instrument conveying the subject property to Christiana Trust. Christiana Trust filed a complaint to quiet and confirm title to the property. Ciota was served with process by certified mail at her residence in Louisiana. After Ciota failed to file a timely answer or appear, Christiana Trust obtained a clerk’s entry of default against Ciota pursuant to M.R.C.P. 55(a). Christiana Trust later filed a motion for a default judgment against Ciota. Ciota filed an answer and counterclaim seeking to set aside the tax sale. Christiana Trust moved to strike Ciota’s responsive pleadings as untimely. Ciota then filed a motion to set aside the clerk’s entry of default. Ciota also filed a motion for a declaratory judgment and a motion for summary judgment. The chancellor entered an order granting Ciota’s motion to set aside the entry of default and denying Ciota’s motion for summary judgment. Ciota filed a motion to alter or amend the judgment. After a hearing, the chancellor determined that the publication notice to Ciota failed to meet the statutory requirements of section 27-43-3. The chancellor entered an order granting Ciota’s motion to alter and amend the judgment. The chancellor granted Ciota’s motion for summary judgment, voided the tax sale, and set aside the chancery clerk’s conveyance. Christiana Trust appeals. |
| Summary of Opinion Analysis: | Christiana Trust argues that chancery clerk strictly complied with the statutory notice requirements pertaining to tax sales and redemption periods. Christiana Trust maintains that the alleged error in Ciota’s name is not a deviation from the statutorily mandated procedures. Sections 27-43-1 and 27-43-3 set forth the guidelines for providing notice to property owners of the impending expiration of the redemption period for real property that has been sold for delinquent taxes. Section 27-43-1 states that the chancery court clerk “shall, within one hundred eighty (180) days and not less than sixty (60) days prior to the expiration of the time of redemption with respect to land sold . . . be required to issue notice to the record owner of the land sold as of one hundred eighty (180) days prior to the expiration of the time of redemption.” Section 27-43-3 requires the chancery clerk to issue redemption notice of the tax sale to the reputed owner of the real property by the following methods: “(1) by personal notice as summons issued from the courts are served, (2) by mail at his usual street address, and (3) by publication in a public newspaper of the county in which the land is located.” If personal service is not obtained and certified mail is returned undelivered, the clerk must then make a diligent search and inquiry to locate the record landowner. Section 27-43-3 specifies that the chancery clerk must publish the name and address of the reputed owner of the property and the legal description of the property in a public newspaper having a general circulation in the county in which the land is located. Section 27-43-3 further provides that “[s]hould the clerk inadvertently fail to send notice as prescribed in this section, then the sale shall be void and the clerk shall not be liable to the purchaser or owner upon refund of all purchase money paid.” Failure to comply strictly with the notice requirements renders the purchaser’s tax deed void, with no legal effect, and not simply voidable. Here, the record shows that the chancery clerk published notice to Ciota as “Schultz Megan A C” instead of “Megan A. Ciota,” the name listed in the deed vesting title. Thus, the redemption-notice statute was not strictly followed. As a result, the tax sale was void, and the chancellor’s judgment is affirmed. However, Christiana Trust is entitled to damages under section 27-45-3. Therefore, the issue of damages is remanded. |
Home | Terms of Use | About the JDP | Feedback | Using JDP | MC Law Library | Mississippi Supreme Court
