Case ID: mich_297/html/0535-01.html
Source: Caselaw Access Project
Author: {"author": "Wiest, J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

REDFORD UNION SCHOOLS, DISTRICT NO. 1, v. STATE LAND OFFICE BOARD.
    1. Taxation — Scavenger Sale — Right to Meet Highest Bid.
    Under State land office board act providing that "any person who at the time of the tax sale, had any interest in any parcel of land so sold, shall have the right for a period of 30 days after such public sale * * * to meet the highest bid," the tax sale referred to is the sale at which the State bid in the property and not the so-called scavenger sale (Act No. 155, § 7, Pub. Aets 1937, as amended by Act No. 244, Pub. Acts 1939).
    2. Same — Scavenger Sale — Right to Meet Highest Bid — Grantees Under Quitclaim Deed.
    The right to meet the highest bid at so-called scavenger sale is limited to parties having an interest in the land sold at the tax sale when the State bid in the property; and grantees under quitclaim deeds, executed after period of redemption from tax sale had expired, from parties who were owners of interests at time of tax sale, do not have such right (Act No. 155, § 7, Pub. Acts ¿937, as amended by Act No. 244, Pub. Aets 1939).
    3. Mandamus — Highest Bid at Scavenger Sale — Costs.
    School district, as purchaser at so-called scavenger sale, is entitled to writ of mandamus to compel issuance by State land office board and auditor general of quitclaim deed from State where only party who sought to meet its bid was the grantee from a holder of an interest at time of tax sale by quitelaim deed executed after expiration of period of redemption from tax sale by which State had acquired property by bidding it in; no costs being allowed (Act No. 155, § 7, Pub. Aets 1937, as amended by Act No. 244, Pub. Aets 1939).
    Petition for mandamus by Bedford Union Schools, District No. 1, Bedford township, Wayne county, a municipal corporation, to compel State Land Office Board and others to convey to it title to certain lands in Bedford township held by the State under purchase at tax sale.
    Submitted March 18, 1941.
    (Calendar No. 41,386.)
    Writ granted May 21, 1941.
    Rehearing denied June 30, 1941.
    
      George O. Hansen (Paul Thompson, of counsel), for plaintiff.
    
      Herbert J. Rushton, Attorney General, Edmund E. Shepherd, Solicitor General, arid Peter E. Bradt, Assistant Attorney General, for defendants State Land Office Board and Auditor General.
    
      Miller, Canfield, Paddock & Stone, for defendant Neralac Corporation.
    
      Ferris D. Stone and Frederic B. Besimer (Louis H. Fead, of counsel), for Burton Abstract & Title Company, amicus curiae.
    
   Wiest, J.

Plaintiff school district seeks a-writ of mandamus directing the State Land Office Board and the auditor general to convey to it, by quitclaim deed, title to certain lots in the township- of Redford, Wayne county, held by the State under purchase at the May, 1938, sale for unpaid taxes.

The owners of the lots did not exercise right of redemption as provided by law but, after expiration of the period of redemption and on May 14, 1940, conveyed some of the lots, by quitclaim deed, to defendant Neralac Corporation and, about that time, conveyed other lots to defendants Yern M. Bingham and Robert A. Bogan. May 18, 1940, the lots were put up for sale at public auction, as provided by Act No. 155, Pub. Acts 1937, as amended by Act No. 244, Pub. Acts 1939 (commonly known as the scavenger sale), and struck off to plaintiff who paid all sums required by the State and received a certificate of purchase. Where land is sold for unpaid taxes, bid in by the State, no redemption made, and is put up for sale by the State at the so-called scavenger sale and struck off to the highest bidder, may one who has acquired a quitclaim deed from the former owner, after he has failed to redeem the premises, match the highest bid at the scavenger sale and be entitled to a deed from the State?

Act No. 155, § 7, Pub. Acts 1937, as amended by Act No. 244, Pub. Acts 1939, provides that the successful bidder at the scavenger sale shall receive a certificate of purchase and: “Any person who, at the time of the tax sale, had any interest in any parcel of land so sold, shall have the right for a period of 30 days after such public sale as in this section provided, to meet the highest bid, by paying the amount thereof to the county treasurer.”

In Stickler v. State Land Office Board, ante, 271, we held the tax sale above mentioned means the sale at which the State bid in the property and not the scavenger sale.

At the time of the sale to the State, the Neralac Corporation, Yern M. Bingham and Robert A. Bogan had no interest of any kind in the land so sold and, as we held in Stickler v. State Land Office Board, supra, had no fight to meet the bid of the school district and receive deeds.

The right to match the highest bid at the scavenger sale is a granted privilege, limited to persons having an interest in the land at the time of the sale for unpaid taxes, and is valid.

Plaintiff is entitled to a deed and, if necessary, the writ will issue. No costs.

Sharpe, C. J., and Bushnell, Boyles, Chandler, North, McAllister, and Butzel, JJ., concurred. 
      
       Comp. Laws Supp. 1940, § 3733^-1 et seq., Stat. Ann. 1940 Cum. Supp. §§ 7.951-7.964.—Reporter.