Title: Strom v. Giske
Citation: 68 N.W.2d 838
Docket Number: 7352
State: north-dakota
Issuer: north-dakota Supreme Court
Date: December 17, 1954

68 N.W.2d 838 (1954) Henry STROM, Effie Shearon, Ruth Stuart, Erwin Strom, Robert Strom and Mabel Kong, Plaintiffs and Appellants, v. Olaf GISKE, A. M. Fruh, Thomas W. Leach, Carl Thompson and Williams County, a Municipal Corporation and Sub-Division of the State of North Dakota, Defendants and Respondents. No. 7352. Supreme Court of North Dakota. December 17, 1954. Rehearing Denied March 15, 1955. *840 Swendseid &amp; Bekken, Stanley, N. D., Lashkowitz &amp; Lashkowitz, Fargo, N. D., for appellants. Eugene A. Burdick, Williston, N. D., for respondent Olaf Giske. Strutz, Jansonius &amp; Fleck, Bismarck, N. D., for respondents A. M. Fruh, Thomas W. Leach and Carl Thompson. SATHRE, Judge. This is an action to determine adverse claims brought by the plaintiffs against the defendants to quiet title to the following described property situated in the county of Williams and State of North Dakota: The complaint is in the statutory form. The defendant Olaf Giske answered alleging that he was the owner of the land described in the complaint; that he acquired said land through a tax deed from Williams County, and demanded judgment quieting title in him. The defendants A. M. Fruh, Thomas W. Leach and Carl Thompson answered claiming their interests by virtue of a mineral deed and oil and gas leases from the defendant Olaf Giske. The validity of their claims is dependent upon the validity of the title of the defendant Olaf Giske. The defendant Williams County did not answer and made no appearance. The case was tried to the court without a jury at Williston, North Dakota before the Hon. Roy A. Ilvedson, Judge of the District Court. The trial Court found for the defendants quieting title in them in accordance with their respective claims, and plaintiffs appealed from the judgment. Before argument on the merits defendants moved for dismissal of the appeal upon the following grounds: With reference to the first ground urged we have examined the record and we find that counsel for plaintiffs admitted service of Notice of Entry of Judgment April 25, 1952; that counsel for defendant Olaf Giske admitted service of the Notice of Appeal and Undertaking on Appeal on October 20, 1952 and that the endorsement of the clerk of the district court shows that the same were filed in his office on October 22, 1952, which would be within six months *841 after service of Notice of Entry of Judgment. Counsel for defendants A. M. Fruh, Thomas W. Leach and Carl Thompson admitted in writing service of the Notice of Appeal and Undertaking on Appeal on October 22, 1952. The endorsement made by the clerk of the district court on the written admission of service shows that it was filed in his office October 30, 1952. It appears therefore that the notice of appeal and undertaking on appeal were served upon all of the defendants within the six months allowed for appeal. Section 28-2705, NDRC 1943, prescribes the procedure for taking appeals and is as follows: The necessary requirement under the statute quoted is that the notice and undertaking be served and filed within the time allowed for appeal. The statute provides that "The appeal shall be deemed taken by the service of a notice of the appeal and perfected on service of the undertaking for costs, or the deposit of money instead, or the waiver thereof as in this chapter prescribed." The notice of appeal and the undertaking on appeal were duly served upon all of the defendants and filed with the clerk of the district court. Since service of the notice of appeal was timely made upon all of the defendants and filed in the office of the clerk of the district court, the fact that proof of such service was not filed until two days after the expiration of the time for appeal was immaterial. The second ground upon which defendants base their motion to dismiss goes to the sufficiency of the undertaking on appeal. The undertaking is as follows: The undertaking was signed by only one of the six plaintiff-appellants Henry Strom. Respondents contend therefore that since the five plaintiffs did not join in the execution of the undertaking they, in effect, failed to furnish an undertaking as required by statute. However the undertaking was executed and acknowledged by two *842 sureties. By its terms the sureties undertook that the plaintiffs would pay all costs and damages which might be awarded against them on appeal or on a dismissal thereof. Under the terms of the undertaking the sureties are obligated to pay any amount of costs and damage awarded the defendants against the plaintiffs on the appeal in the amount fixed by the undertaking. As required by Section 28-2723 NDRC 1943 the sureties justified as to their financial worth over and above their debts and liabilities in property within the state not exempt by law from execution in double the amount specified in the undertaking. It does not appear that the defendants took any exception to the sufficiency of the sureties. Section 28-2709 NDRC 1943, reads as follows: The undertaking in the instant case complies with the requirements of said Section 28-2709 and is therefore sufficient in all respects. Prior to the first day of October 1941 one Mary Strom was the record title owner of the real property described in the complaint. The post office address as shown in the office of the register of deeds of Williams County, North Dakota was Tioga, North Dakota. She resided at White Earth, North Dakota with her husband from the year 1923 until about the month of February 1935 when she died. The plaintiffs in this action are the heirs at law of said Mary Strom, but no administrator was ever appointed nor were any proceedings for the administration of her estate had in any county in the state of North Dakota. Four of the plaintiffs, Effie Shearon, Ruth Stuart, Mabel Kong and Erwin Strom were non-residents. Henry Strom was a resident of the state and had resided at Fargo and Ross, North Dakota twenty two years. Robert also was a resident of the state and resided at Minot, North Dakota. Taxes were legally assessed and levied by Williams County against the said described real property for the year 1934 but the taxes remained unpaid and were sold to Williams County at the annual tax sale on December 10, 1935. No redemption was made from said tax sale. On the 23rd day of May 1941 the county auditor of Williams County caused to be mailed to Mary Strom at White Earth, North Dakota a registered letter containing a notice of expiration of period of redemption in which the land was described as being in range 95 instead of range 96. On June 2, 1941 the envelope containing the notice was returned unopened with a notation thereon "deceased". Thereafter the county auditor caused notice of expiration of period of redemption of the lands sold to the county at tax sale to be published in the official county newspaper, The Williston Daily Herald on August 1, 1941 in the form and in the manner prescribed by law. No redemption was made pursuant to such notice. On October 1st, 1941 the county auditor issued to Williams County a deed to the said described land in the statutory form known as "Auditor's Deed". Thereafter and in the year 1943 Williams County sold the said described land to the defendant Olaf Giske under contract for deed for a consideration of $200 and accumulated interest and on October 1, 1945 he received a deed from Williams County. Thereafter the defendant Olaf Giske conveyed to the defendants A. M. Fruh and Thomas W. Leach certain undivided interests in and to all of the oil, gas and other minerals in and under, and that may be produced on said lands. The defendants A. M. Fruh and Thomas W. Leach conveyed certain interests in said premises to the defendant Carl Thompson. *843 The trial court held that it would have been an idle act to attempt to serve the notice of expiration of the period of redemption upon the record title owner, since she was dead, and that the statutory requirements for service of such notice were complied with by the publication thereof in the form and manner provided by law. Accordingly the court held that the defendant Olaf Giske was the owner in fee simple of the real property described in the complaint, and that the defendants A. M. Fruh, Thomas W. Leach and Carl Thompson were the owners of certain undivided mineral interests in said real property; that the said defendants, severally, were the owners and entitled to the possession of said real property in accordance with their said interests free and clear of any claim or interest in or lien or incumbrance upon said real property by the plaintiffs or any or either of them. Judgment was accordingly rendered for the defendants and for the dismissal of plaintiffs' action. The plaintiffs appealed from the judgment. They contend that the auditor's deed to Williams County and the deed by Williams County to Olaf Giske were void upon the following grounds: The rule is well settled in this state that a tax deed taken without strict compliance with the statutory requirements as to service of the notice of expiration of period of redemption is void. Section 57-2804, NDRC 1943 prescribes the duties of the county auditor relative to the method of serving the notice of expiration of the period of redemption upon the record title owner, mortgagees, lien holders and other persons interested as shown by the records in the office of the register of deeds and the clerk of court of the county in which the land is situated and is as follows: That the notice of redemption must contain a correct description of the land involved complete in itself has been held in numerous cases decided by this court including Blessett v. Turcotte, 20 N.D. 151, 127 N.W. 505; State Finance Co. v. Trimble, 16 N.D. 199, 112 N.W. 984; Star v. Norsteby, 75 N.D. 563, 30 N.W.2d 718. In Blessett v. Turcotte the notice of expiration of the period of redemption was held void because it described the land as the NW ¼ of Sec. 2, instead of NW ¼ of Sec. 20. In the case of State Finance Co. v. Trimble, the description in the notice was as follows: N½ and SE¼ of Sec. 12, Twp. 140, Rge. 63. The correct description was N½NE¼, SE¼NE¼, NE¼SE¼ of Sec. 12, Twp. 140, Rge. 63. The notice was held to be void. Respondents contend that since the notice of expiration of the period of redemption was published as required by law no one was prejudiced by the failure of the county auditor to mail the redemption notice to the record title owner. They contend further that mailing the notice to the record title owner in the instant case would be an idle act since she was dead. They cite the case of Baird v. Zahl, 58 N.D. 388, 226 N. *844 W. 549, 551. However that case does not support their contention. We held there: And in the case of Cota v. McDermott, 73 N.D. 459, 16 N.W.2d 54, 58, 155 A.L.R. 1271, we said: To the same effect is Messer v. Henlein, 72 N.D. 63, 4 N.W.2d 587, 589, where we said: Under Section 57-2804 it was the duty of the county auditor to send to the record title owner by registered mail a notice of expiration of the period of redemption containing a correct description of the land involved. It is admitted that the notice of expiration of the period of redemption sent by the county auditor to Mary Strom at White Earth described the land as being in Range 95, whereas it was actually situated in Range 96. The notice mailed to Mary Strom was therefore fatally *845 defective and the attempted service upon her was as ineffectual as if no attempt to make service upon her had ever been made. The auditor's deed to Williams County and the tax deed issued by the county to defendant Olaf Giske were therefore void and of no effect. However, the defendant Giske contends that because of laches on the part of the plaintiffs in bringing the action the same is barred. He purchased the land in 1943 and they brought their action in 1951. The trial court having held that the tax deed proceedings were regular and valid, did not pass on the question of laches. It is argued that since the discovery of oil the land in question has increased in value from $1.25 per acre to several hundred dollars per acre and that this increase in value has accrued to the benefit of the respondent Giske; that it would be unjust and inequitable to sustain plaintiffs' cause of action at this time. It is well established that laches is a question of fact and each case must stand or fall on its own facts and circumstances. In the case of Grandin v. Gardiner, N.D., 63 N.W.2d 128, 134, this court quoted with approval from Jones v. McNabb, 184 Okl. 9, 84 P.2d 429, as follows: And in Larson v. Quanrud, Brink &amp; Reibold, 78 N.D. 70, 47 N.W.2d 743, 745, 29 A.L.R.2d 230, Syllabus 9, we said: In the case of Turner v. Hunt, 131 Tex. 492, 116 S.W.2d 688, 691, 117 A.L.R. 1066, the Supreme Court of Texas said: In the case of McIver v. Norman, 187 Or. 516, 205 P.2d 137, 213 P.2d 144, 153, 13 A.L.R.2d 749, the Supreme Court of Oregon held: And in the case of Neff v. Calk, 198 Okl. 379,178 P.2d 624, 626, the Supreme Court of the State said: Likewise in the case of Gaffney v. Harmon, 405 Ill. 273, 90 N.E.2d 785, 789, the Supreme Court of Illinois held that the doctrine of laches will be applied by a court of equity in denial of relief when the period of limitations has not expired, only where from all of the circumstances in evidence, to grant relief to which the complainant would otherwise be entitled, would, presumptively be inequitable and unjust to defendants. Referring to the doctrine of laches the court said: The defendant Olaf Giske testified that none of the plaintiffs had ever at any time made any claim to said described land and that the first time that they showed any interest in said land was on the 3rd day of July 1951 a few months after the discovery of oil in the vicinity of the land, when they drove to his farm and stated that they had examined the record and asked him to give them a quitclaim deed to the land. He testified further that in June 1940 he took one of the plaintiffs, Erwin Strom out to see the land and that Erwin Strom said: The plaintiff Henry Strom testified that the first time he knew the land had been sold for taxes was "in April 1951, when the Amerada man came down there and wanted a quitclaim deed." It may be noted here that Amerada Petroleum Corporation was originally joined as a defendant, but later withdrew from the action by stipulation of all of the parties. In November 1948 Effie Shearon one of the plaintiffs who resided in Seattle, Washington wrote a letter to the county treasurer of Williams County which was admitted in evidence by stipulation, in which she stated that her mother Mary Strom or her father Edward Strom had some land south of Tioga, but she did not know the legal description. She asked the treasurer to check the records in his office and advise her as she wished to pay whatever taxes there might be due on the land. The treasurer returned the letter to her with a notation on the back thereof stating he was unable to find any land in the name of Mary Strom or Edward Strom, but suggested that she write to one of the neighbors who might be able to give her the desired information. The only testimony as to the value of the land in controversy is that of the defendant Olaf Giske. He stated that prior to the discovery of oil the land was worth about $6.50 per acre, and that after the discovery of oil it was worth $250 per acre. There is no other testimony in the record as to the value of the land. So far as the record and evidence show no oil has been discovered nor has any drilling for oil been done on the land. The improvements he had made were not extensive. *847 He had plowed twelve acres at a cost of $7 per acre, and had spent some $500 for a fence he had erected on the land. The change in the status of the parties as claimed by the defendant Olaf Giske, is that the discovery of oil in the vicinity of the land in question greatly enhanced its value, and that it would be inequitable and unjust to permit the plaintiffs to prevail in this action. However, the discovery of oil was not the result of any effort or activity on the part of the defendant Giske. Whatever sums he may have expended in improving the land during his occupancy thereof may be easily ascertained so that he can be compensated therefor and thus be restored to his former status. Section 47-0603, NDRC 1943, as amended by Chapter 276, Session Laws 1951 provides: As we have pointed out herein, the courts ordinarily apply by analogy the period of limitations fixed by statute to the plea of laches. In the instant case the defendant Olaf Giske purchased the land in controversy from Williams County in 1943. In 1951 eight years later, the plaintiffs brought action. At that time the defendant Giske had not been in the actual open and undisputed possession of the land and had not paid the taxes and assessments legally levied thereon for a period of ten years. Plaintiffs' action was therefore not barred by the statute. We hold therefore upon the record and the evidence that the defendants have failed to sustain the defense of laches as against the void tax deed held by the defendant Olaf Giske. Since this determines the issues presented on the appeal it will not be necessary to consider the second specification urged by the plaintiffs-appellants. Williams County was made a party defendant in this action but it did not answer and no appearance was made on its behalf. Section 57-4510, 1953 Supp. NDRC 1943, provides: No deposit was made by the plaintiffs and no determination was made by the trial court of the amount of the deposit to be made by the plaintiffs as required by said Section 57-4510. A similar question was before this court in the case of Belakjon v. Hilstad, 78 N.D. 194, 48 N.W.2d 747. In that case we held that although the county made no formal demand for judgment in the amount of taxes, penalties and interest during the years that taxes had not been paid by the record title owner, the county was entitled to judgment therefor, and accordingly the case was remanded to the district court for a determination of the deposit required by the statute. The decision in Belakjon v. Hilstad, supra, is controlling in the instant case relative to the requirement of a deposit under said Section 57-4510. The judgment is reversed and remanded with directions *848 to the district court to determine the amount of deposit to be made by appellants as required by the statute and that further proceedings be had conformable to law. MORRIS, C. J., and BURKE and GRIMSON, JJ., concur. JOHNSON, J., did not participate. SATHRE, Judge. A petition for rehearing has been filed by the respondent in which it is strenuously argued that the principle of law embodied in Section 57-2705, NDRC 1943, as amended by Chapter 276 of the Session Laws of 1951 was overlooked in the opinion prepared herein. The county auditor's deed to Williams County of the real property involved in this action was issued October 1, 1941. At that time Section 2206, Compiled Laws of North Dakota of 1913 was in force and effect. That Statute is identical with Section 57-2705, NDRC 1943 as amended by Chapter 276 of the Session Laws of 1951. The last clause of said Section reads as follows: It is contended that that portion quoted is a rule of evidence which has been prescribed by the legislature and is binding upon the court where timely objection has been made to the reception of evidence which tends to refute the factual recital contained in the tax deed. The tax deed contains the following recitations: This court has held that under the provisions of Section 2206, Comp.Laws of 1913, a tax deed executed by the county auditor is "`prima facie evidence of the regularity of all the proceedings from the assessment and valuation of the land by the assessor up to the execution of the deed.'" Twedt v. Hanson, 58 N.D. 571, 226 N.W. 615, 618; Peterson v. Reishus, 66 N.D. 436, 266 N.W. 417, 105 A.L.R. 724; Axt v. Bank of America, 72 N.D. 600, 10 N.W.2d 430. It follows therefore that such prima facie proof may be overcome by clear evidence that the notice of expiration of period of redemption had not been served in the manner and form required by statute. It has been pointed out in the opinion herein that in the tax deed proceedings had by Williams County there was an absolute failure of compliance with the statutory requirements for service of the notice of expiration of the period of redemption. The recitation in the tax deed that the notice of the expiration of right to redeem from such sale had been given as required by law was prima facie evidence only and became ineffective when the tax deed proceedings showed affirmatively that there had been an absolute failure of service of the notice of expiration of period of redemption in the manner required by law. Section 2206 of the Compiled Laws of 1913, which is identical with Section 57-2705, NDRC 1943 as amended by Chapter 276 of the Session Laws of 1951 was in force and effect until adoption of the Revised Code of North Dakota in 1943. During the effective date thereof the question as to the necessity for service of the notice of expiration of period of redemption has been considered by this court on many occasions and we have invariably held that the statutory requirements for service of such notice must be strictly complied with. *849 Biberdorf v. Juhnke, 59 N.D. 1, 228 N.W. 233; Messer v. Henlein, 72 N.D. 63, 4 N.W.2d 587; Davidson v. Kepner, 37 N.D. 198, 163 N.W. 831. Rehearing denied. BURKE, C. J., and MORRIS and GRIMSON, JJ., concur. JOHNSON, J., did not participate.