Case Title: ADKINS v REDEYE

Citation: 

Docket Number: 81-152

State: montana

Court: Montana Supreme Court

Date: 1981-12-23T00:00:00Z

Document:
NO. 81-152 IN THE SUPREME COURT OF THE STATE OF MONTANA 1981 DAVE A . ADKINS, Plaintiff, Respondent and Counterclaimant and Defendant, GERALDINE V . REDEYE and MARLIN DUANE HUEY, Defendants, Appellants and Counterclaimants and Plaintiffs. Appeal from: District Court of the Nineteenth Judicial District, In and for the County of Lincoln Honorable Robert M. Holter, Judge presiding. Counsel of Record: For Appellants: Oleson Law Firm, Kalispell, Montana Fennessy, Crocker & Fennessy, Libby, Montana For Respondent: Williams & Sverdrup, Libby, Montana Submitted on briefs: September 18, 1981 Decided: December 23, 1981 2 3 I981 Filed:. # @ Clerk M r . J u s t i c e Frank B. Morrison, Jr., d e l i v e r e d t h e Opinion of t h e Court. Marlin Duane Huey and Geraldine V. Redeye, a p p e l l a n t s , appeal from judgment e n t e r e d by t h e D i s t r i c t Court of t h e Nineteenth J u d i c i a l D i s t r i c t on January 8, 1981, and from an o r d e r denying a p p e l l a n t s ' motion t o amend t h e f i n d i n g s of f a c t , conclusions of law and judgment e n t e r e d on March 10, 1981. The judgment decreed Dave A. Adkins, respondent, t h e owner i n f e e simple of t h e following land i n Lincoln County, Montana : The Southwest Q u a r t e r of t h e Southeast Q u a r t e r of S e c t i o n 4 , Township 30 North, Range 33 W e s t , M.P.M. This appeal involves a d i s p u t e over t i t l e t o t h e above- described 40 a c r e t r a c t of timberland, o r i g i n a l l y owned by P h i l l i p Redeye. P h i l l i p d i e d i n an a c c i d e n t i n 1955. H i s e s t a t e was probated and a f i n a l decree and o r d e r was e n t e r e d i n Lincoln County, Montana, on November 23, 1956. This decree and o r d e r d i s t r i b u t e d t h e 40 a c r e t r a c t t o P h i l l i p ' s wife, Geraldine V. Redeye (a/k/a Geraldine Huey) and t o P h i l l i p ' s two year o l d son Marlin Duane Redeye (a/k/a Marlin Duane Huey) a s t e n a n t s i n common. The November 2 3 , 1956 o r d e r and decree was f i l e d i n t h e c o u r t probate record; however, no copy was e v e r c e r t i f i e d and f i l e d i n t h e o f f i c e of t h e Lincoln County Clerk and Recorder. Guardianship over t h e e s t a t e and person of Marlin Duane was granted t o Geraldine by t h e Montana c o u r t . Geraldine and Marlin moved t o Washington s h o r t l y a f t e r P h i l l i p ' s death. Subsequently, Geraldine p e t i t i o n e d and was granted guardianship of Marlin Duane i n t h e S t a t e of Washington. I n 1961, Geraldine p e t i t i o n e d t h e Montana c o u r t t o remove t h e personal property s u b j e c t t o t h e Montana guardian- ship. Removal of personal property t o t h e S t a t e of Washington was authorized by a c o u r t order dated December 8, 1961. This order d i d n o t terminate the Montana guardianship. Tax r e c e i p t s f o r t h e property w e r e mailed by t h e Lincoln County T r e a s u r e r ' s o f f i c e t o the record title-owner, P h i l l i p Redeye f o r t h e years 1956 t o 1959 a s follows: Redeye, P h i l l i p Troy, Montana Redeye, P h i l l i p c/o Geraldine V. Redeye Troy, Montana Redeye, P h i l l i p c/o Jacob Redeye Troy, Montana Redeye, P h i l l i p c/o M r s . Geraldine Huey 2400 Donovan, Bellingham, Washington The record i s somewhat unclear a s t o who made payment of t h e taxes. P h i l l i p ' s f a t h e r , Jacob Redeye, paid t h e taxes f o r the year 1957 and received an assignment of t a x s a l e c e r t i f i c a t e . Apparently, payment of these taxes was subsequently redeemed f o r Jacob never obtained a t a x deed f o r t h e property. Geraldine t e s t i f i e d t h a t she d i d n o t know who had made t h e t a x payments b u t had assumed t h a t t h e a t t o r n e y who had probated P h i l l i p ' s e s t a t e and handled t h e guardianship proceedings was taking c a r e of such matters. I n 1960, 1961, 1962, 1963, and 1 9 6 4 no tax payments w e r e made on t h e 40 a c r e parcel. On August 10, 1965, M r s . Dave A. Adkins paid t h e defaulted taxes and obtained an assignment of t a x s a l e s c e r t i f i c a t e from t h e Treasurer of Lincoln County. Thereafter, Dave A. Adkins undertook proceedings t o o b t a i n a t a x deed. Adkins, v i a r e g i s t e r e d mail, s e n t n o t i c e of h i s a p p l i c a t i o n f o r t a x deed t o t h e record title-owner, P h i l l i p Redeye, and a l s o t o M r s . Geraldine Huey. Adkins mailed t h e s e n o t i c e s t o t h e only address a v a i l a b l e from t h e County T r e a s u r e r ' s records, 2400 Donovan, Bellingham, Washington. This n o t i c e was returned by t h e p o s t a l s e r v i c e marked "Moved -- Not Forwardable." Adkins then published n o t i c e of h i s a p p l i c a t i o n f o r t a x deed i n t h e "Western News," a newspaper of general c i r c u l a t i o n i n Lincoln County, Montana. This p u b l i c a t i o n appeared f o r two consecutive weeks on t h e 10th and 17th of February, 1966. Adkins subsequently applied f o r and received a t a x deed t o t h e 40 a c r e s on May 4 , 1966. Thereafter, Adkins used the land. He harvested Christmas t r e e s on occasion and had it s e l e c t i v e l y logged i n 1969. He a l s o pruned and thinned on t h e property. Adkins continued t o pay a l l taxes on t h e property a s they came due. On A p r i l 5, 1979, Dave Adkins commenced an a c t i o n t o q u i e t t i t l e t o t h e property. Geraldine and Marlin responded and counter-claimed a l l e g i n g t h a t t h e t a x deed r e l i e d on by Adkins was i n v a l i d f o r f a i l u r e t o comply with s t a t u t o r y requirements. Geraldine and Marlin tendered a l l taxes, p e n a l t i e s , and i n t e r e s t accrued from 1960 t o the present. A t r i a l was held on October 9, 1980. The D i s t r i c t Court, s i t t i n g without jury, quieted t i t l e t o t h e property i n Dave A. Adkins. The p a r t i e s p r e s e n t t h e following i s s u e s : 1) Whether Dave A. Adkins complied with t h e s t a t u t o r y requirements necessary t o obtain a v a l i d t a x deed? 2) Whether Dave A. Adkins acquired t i t l e by adverse possession? 3) Whether t h e a l l e g e d negligence of t h e a t t o r n e y who probated t h e estate of P h i l l i p Redeye and handled t h e Montana guardianship proceedings precludes Dave A. Adkins from obtaining t i t l e t o t h e property? W e f i n d t h e f i r s t i s s u e t o be d i s p o s i t i v e . Appellants contend t h a t Adkin's procedure i n obtaining a t a x deed t o t h e disputed property i s d e f i c i e n t f o r two reasons: F i r s t , t h e r e was a d e f e c t i n t h e t a x t i t l e chain and, secondly t h e r e was i n s u f f i c i e n t n o t i c e t o Geraldine and Marlin a t t h e t i m e of a p p l i c a t i o n f o r t a x t i t l e . Appellants argue t h a t the p a r t y who paid the d e f i c i e n t t a x assessments and received an assignment of t a x s a l e c e r t i f i c a t e on August 10, 1965, was a M r s . Dave A. Adkins, whereas t h e p a r t y who undertook a c t i o n culminating i n t h e r e c e i p t of a t a x deed on May 4 , 1966, was Dave A. Adkins. Appellants a s s e r t t h a t no evidence was ever presented i n t h i s matter e s t a b l i s h i n g a l e g a l r e l a t i o n s h i p between t h e two p a r t i e s . Thus, a p p e l l a n t s a l l e g e a d e f e c t i n t h e chain of t a x t i t l e which n e c e s s a r i l y i n v a l i d a t e s t h e t i t l e u l t i m a t e l y obtained by Dave A. Adkins. After reviewing t h e record i n t h i s matter, it i s c l e a r t h a t t h i s contention was never r a i s e d a s an i s s u e i n t h e D i s t r i c t Court and cannot now be r a i s e d here. Kearns v. McIntyre Const. Co. (1977), 173 Mont. 239, 567 P.2d 433. I n f a c t , a p p e l l a n t s ' pleadings a s s e r t t h a t ". . . on t h e 10th of August, 1965, Minnie 0 . Anderson, Treasurer of Lincoln County, Montana, assigned t o counterclaimant defen- dant (Dave A. Adkins) an assignment of t a x s a l e s c e r t i f i c a t e f o r unpaid property taxes owed t o s a i d County of Lincoln f o r the year 1960; t h a t on t h e 4th of May, 1966, s a i d Minnie 0 . Anderson, Lincoln County Treasurer, executed and delivered a t a x deed f o r s a i d property t o counterclaimant defendant (Dave A. Adkins) ." Having admitted t h e s e f a c t s , a p p e l l a n t s cannot claim on appeal t h a t the chain of t i t l e r e l i e d upon by Dave A. Adkins i n obtaining h i s tax deed was n o t s u f f i c i e n t l y proven. Appellants a l s o contend t h a t Adkins f a i l e d t o comply with t h e s t a t u t o r y requirements, f o r obtaining a v a l i d t a x deed because Adkins d i d n o t give a p p e l l a n t s proper n o t i c e a s required i n 1966 by Section 84-4151, R.C.M., 1947 ( p r e s e n t l y c o d i f i e d a s Section 15-18-202, MCA). Therefore, a p p e l l a n t s claim t h a t Adkins' t a x deed i s i n v a l i d and t h a t they a r e e n t i t l e d t o redeem t h e property by paying a l l taxes, p e n a l t i e s , and i n t e r e s t accrued from 1960 t o present. Section 84-4151, R.C.M., 1947, provides i n p e r t i n e n t p a r t : "The purchaser of property sold f o r delin- quent taxes . . . must, a t l e a s t s i x t y (60) days previous t o t h e e x p i r a t i o n of t h e t i m e f o r redemption, o r a t l e a s t s i x t y (60) days before he a p p l i e s f o r a deed, s e r v e upon t h e owner of t h e property purchased, -- i f known . . . a w r i t t e n n o t i c e . . . and t h e owner of t h e property . . . has t h e r i g h t of re- demption i n d e f i n i t e l y u n t i l such n o t i c e has been given . . . I n a l l cases where t h e post- o f f i c e address of the owner . . . i s unknown, t h e a p p l i c a n t s h a l l publish once a week f o r two ( 2 ) successive weeks i n a newspaper pub- l i s h e d i n t h e county where t h e property i s s i t u a t e d , a n o t i c e s u b s t a n t i a l l y i n t h e follow- i n g form . . ." This Court has c o n s i s t e n t l y held t h a t t h e s t a t u t o r y requirements f o r obtaining a tax deed must be f u l l y s a t i s f i e d . Lowery v. Garfield County (1949), 1 2 2 Mont. 571, 208 P.2d 478. The c o u r t i n Lowery a l s o s t a t e d t h a t : "The giving of t h e n o t i c e i s j u r i s d i c t i o n a l and unless t h e requirement of t h e law i n r e s p e c t t o such n o t i c e i s complied with and t h a t f a c t e s t a b l i s h e d by t h e a f f i d a v i t f i l e d with t h e county t r e a s u r e r t h e t a x deed may n o t l e g a l l y i s s u e . " 1 2 2 Mont. a t 580, 208 P.2d a t 483. With t h i s i n mind w e t u r n t o the n o t i c e given i n t h i s case. Adkins f i r s t attempted s e r v i c e of h i s n o t i c e of applica- t i o n f o r t a x deed by mailing r e g i s t e r e d l e t t e r s containing such n o t i c e t o t h e address and names l i s t e d on t h e 1959 t a x r e c e i p t records of t h e County Treasurer. This t a x r e c e i p t f o r 1959, the year i n which taxes had l a s t been paid upon t h e property, l i s t e d P h i l l i p Redeye a s t h e record title- owner and noted t h e mailing address t o be: c/o M r s . Geraldine Huey, 2400 Donovan, Bellingham, Washington. These n o t i c e s w e r e returned t o Adkins marked "Moved -- Not Forwardable." Adkins then published t h e s t a t u t o r y n o t i c e required by Section 84-4151, R.C.M., 1947 i n t h e "Western News" on February 10th and 17th, 1966. Adkins then proceeded t o o b t a i n a t a x deed t o t h e property on May 4 , 1966. Appellants argue t h a t , although P h i l l i p Redeye was s t i l l l i s t e d a s t h e record title-owner on t h e t r e a s u r e r ' s t a x r o l l s , nevertheless Adkins could e a s i l y have searched t h e probate judgment book, found t h e order and decree, and thus determined t h e t r u e owners of t h e property. Appellants claim t h a t Adkins' f a i l u r e t o conduct such a search r e s u l t e d i n d e f e c t i v e n o t i c e because Adkins' e f f o r t s a t giving n o t i c e completely excluded t h e minor, Marlin Duane Huey, from t h e n o t i c e process. The duty owed by a t a x deed a p p l i c a n t f o r discovering a l l t r u e owners of property and t h e i r c o r r e c t addresses was r e c e n t l y discussed by t h i s Court i n Madden v. Zimmerman (1975), 166 Mont. 285, 532 P. 2d 4 1 4 . I n Madden w e s t a t e d t h a t : "The s t a t u t e (884-4151, R.C.M. 1947) s e t s f o r t h t h e n o t i c e required by a p e t i t i o n e r f o r a t a x deed, t o r e q u i r e more i s n o t w i t h i n t h e power of t h i s Court. To r e q u i r e t h e p e t i t i o n e r t o search o t h e r o r a l l l e g a l records and t o be on n o t i c e of a l l l e g a l p u b l i c a t i o n s which may a f f e c t t i t l e t o t h e property would be onerous. "Therefore t h e burden must f a l l t o t h e tax- payer t o keep t h e taxing a u t h o r i t i e s informed of h i s i n t e r e s t i n the land and h i s c u r r e n t address. " ( c i t a t i o n omitted) 166 Mont. a t 289-290, 532 P.2d a t 417. Applying t h i s holding t o t h e i n s t a n t case, it i s c l e a r t h a t a p p e l l a n t s had a duty t o keep t h e Lincoln County taxing a u t h o r i t i e s apprised of t h e i r c o r r e c t address. Such a c t i o n was never taken. Adkins conducted t h e search required of him t o a s c e r t a i n t h e owners of t h e property. H e then complied with t h e requirements of Section 84-4151, R.C.M., 1947, r e l a t i n g t o t h e giving of notice. Adkins attempted t o g i v e n o t i c e by r e g i s t e r e d mail; once t h i s f a i l e d he r e s o r t e d t o t h e s t a t u t o r i l y permissible mode of n o t i c e by publication. W e hold t h a t Adkins' compliance with Section 84-4151, R.C.M., 1947, afforded Geraldine, personally, and Marlin Duane, through Geraldine, h i s guardian of both person and e s t a t e , proper n o t i c e of t h e a p p l i c a t i o n f o r tax deed. Although t h e question has n o t a r i s e n o f t e n o r r e c e n t l y , o t h e r j u r i s d i c t i o n s have held t h a t n o t i c e by p u b l i c a t i o n i s s u f f i c i e n t a s t o a minor's i n t e r e s t i n r e a l property. Hardy v. Beaty (1892), 84 Tex. 562, 19 S.W. 778; Wheeler v. Scully, e t a l . (1872. C t . of App.), 50 N.Y. 666. 4 2 Am.Jur.2dI I n f a n t s , S197, provides i n p a r t : "Moreover, t h e r u l e s t h a t unknown claimants of property may be served by p u b l i c a t i o n and t h a t a judgment rendered a g a i n s t them i s v a l i d a t least t o t h e e x t e n t t h a t it i s i n rem o r quasi i n r e m apply t o i n f a n t defendants." Therefore, w e hold Dave A. Adkins properly complied with a l l necessary s t a t u t o r y requirements f o r obtaining a t a x deed and t h e deed issued by t h e Lincoln County Treasurer on May 4 , 1966 i s v a l i d . The i s s u e of adverse possession i s moot. Appellants' a l l e g a t i o n regarding t h e negligence of t h e a t t o r n e y who probated P h i l l i p Redeye's estate and who handled t h e guardianship proceedings f o r Geraldine Redeye was never r a i s e d i n t h e pleadings nor presented t o t h e D i s t r i c t Court. A s previously s t a t e d , i s s u e s must be presented before t h e D i s t r i c t Court and may n o t be r a i s e d f o r t h e f i r s t t i m e on appeal. Kearns v. McIntyre Const. Co. (1977), supra. Therefore, t h i s Court d e c l i n e s t o review a p p e l l a n t s ' second i s s u e . The judgment of t h e D i s t r i c t Court i s affirmed. W e Concur: