Opinion ID: 2136824
Heading Depth: 1
Heading Rank: 3

Heading: deposit of taxes

Text: Fibelstad asserts that the trial court erred in granting relief to the Bank in the absence of a deposit into court by the Bank of all delinquent and unpaid taxes on the ranch. We agree. NDCC 57-45-10 directs: Tender of taxes. Whenever any action is brought to test the validity of any deed issued and delivered by the county to the purchaser of lands acquired through tax deed proceedings, the court shall not proceed with the trial of such action until the party assailing the validity of such deed, within the time required by the court, shall deposit with the clerk thereof for the benefit of the county should the deed be held invalid, the amount of all delinquent and unpaid taxes on said property, including penalty and interest, plus any taxes paid thereon by the purchaser from the county. Should said action be determined adversely to the purchaser from the county it shall repay to him any moneys received by the county on said purchase. We reject the Bank's contention that this statute does not apply because no tax deeds had been issued to Fibelstad. Although this action was originally commenced as a mandamus action, it was changed into a declaratory judgment action to quiet title to the ranch when the Bank intervened. For purposes of the decision on the Bank's summary judgment motion, the trial court necessarily assumed that Fibelstad purchased the tax sale certificates rather than redeemed on behalf of the Asbridges. As a result, Fibelstad was theoretically entitled to an assignment of the tax sale certificates. NDCC 57-24-19 and 57-24-21. After the period of redemption expired, Fibelstad was theoretically entitled to tax deeds. NDCC 57-27-05. This case became, for all intents and purposes, an action testing the validity of tax deeds. We also reject the Bank's argument that Fibelstad cannot require the deposit of taxes because the statute specifies that the deposit is for the benefit of the county. The deposit demanded by NDCC 57-45-10 is primarily for the benefit of the county because the statute requires the county to repay the purchaser in the event the tax title fails. Belakjon v. Hilstad, 76 N.D. 298, 35 N.W.2d 637, 646 (1949). The deposit condition is intended to prevent a party, who successfully invalidates a tax title, from escaping payment of the taxes on the property. Belakjon v. Hilstad, 78 N.D. 194, 48 N.W.2d 747, 752 (1951). It is clear that a county cannot waive compliance with the statute by failing to demand the deposit. Strom v. Giske, 68 N.W.2d 838, 847-848 (N.D.1954); Belakjon, 48 N.W.2d at 752; Remmich, 41 N.W.2d at 175-176. To prevail in its challenge to the validity of the tax sale, the Bank must deposit all delinquent taxes, penalty, and interest with the court. Although Fibelstad argues that the Bank must be dismissed from this action entirely for its failure to make the deposit, that is not the remedy for noncompliance with the deposit requirement. Eikevik v. Lee, 73 N.D. 197, 13 N.W.2d 94, 98 (1944); Messer v. Henlein, 72 N.D. 63, 4 N.W.2d 587, 590 (1942); Halvorson v. Haugen, 64 N.D. 476, 253 N.W. 751 (1934). Rather, we have interpreted the statute as a codification for tax title purposes of the equitable principle that one who seeks equity must do equity. Messer, 4 N.W.2d at 590. In other words, the failure to make the deposit postpones the granting of any affirmative relief to the challenger of the tax title. Eikevik, 13 N.W.2d at 98. In the words of the statute, the court shall not proceed.... The Bank cannot proceed with the summary judgment until the deposit is made. Accordingly, we modify and remand to the trial court to determine the amount the Bank must deposit with the clerk of court under NDCC 57-45-10. See Strom, 68 N.W.2d at 847-848. Until that deposit is made, the court cannot grant summary judgment to the Bank. With the modification and deposit, the Bank would be entitled to summary judgment. ERICKSTAD, C.J., LEVINE and VANDE WALLE, JJ., and VERNON R. PEDERSON, Surrogate Judge, concur. VERNON R. PEDERSON, Surrogate Judge, sitting in place of GIERKE, J., disqualified.