Opinion ID: 3011558
Heading Depth: 3
Heading Rank: 2

Heading: Merits of Quiet Title Claim

Text: Although we conclude that the district court had jurisdiction to hear the quiet title claim, we nevertheless hold that the claim was properly dismissed. We may affirm a judgment on any ground apparent from the record, even if the district court did not reach it. See Resolution Trust Corp. v. Fidelity and Deposit Co. of Maryland, 205 F.3d 615, 635 (3d Cir. 2000). Although there was a failure to comply with the notice requirements of 26 U.S.C. S 6335 because the Kabakjians received the required notices by certified mail rather than personal delivery, the record shows that 7 the Kabakjians received actual notice of the seizure and notice of the planned sale of the property. We hold that the notices were not so defective as to void the seizure of the property and its transfer to a third parties. Under 26 U.S.C. S 6339(b)(2), where a deed to real property conveys property seized under S 6335, such a deed operates as a conveyance of all the delinquent taxpayer's right, title and interest in the property so long as the proceedings have been substantially in accordance with the provisions of law. The Kabakjians rely on Kulawy v. United States, 917 F.2d 729 (2d Cir. 1990) but that case involved the sale of personal property not covered by this substantial compliance provision. Section 6339(b)(2) therefore provides that title transfers if there has been substantial compliance with the notice and other procedures set out in S 6335. The Kabakjians received actual notice under S 6335, and although the issue was joined below they failed to show that they were meaningfully prejudiced by receipt of the S 6335 notices by certified mail instead of personal delivery. For example, when Mr. Kabakjian was asked in his deposition how he was prejudiced by receipt of the notice of sale by mail rather than personal delivery, he answered that[a]ny time a citizen's rights are denied they are being prejudiced. Mrs. Kabakjian testified that she agreed with the statement that she had no independent information or claim for damages other than what your husband has told you. We hold that there was substantial compliance with S 6335, and that under 6339(b)(2), all title to the property once vested in the Kabakjians therefore transferred. Their quiet title claim therefore fails on the merits.