Legal Document

462 U.S. 791 103 S.Ct. 2706 77 L.Ed.2d 180 MENNONITE BOARD OF MISSIONS, Appellantv.Richard C. ADAMS. No. 82-11. Argued March 30, 1983. Decided June 22, Syllabus An Indiana statute requires the county auditor to post notice in courthouse of sale real property for nonpayment taxes and publish once each week three consecutive weeks. Notice by certified mail must be given owner, but at time question this case there was no provision or personal service mortgagees property. The purchaser a tax acquires certificate that constitutes lien against amount paid is superior all prior liens. followed 2-year period during which owner mortgagee may redeem If one redeems period, apply deed property, before executed notify former he entitled not redeemed within 30 days, then execute who an estate fee simple, free clear liens, bring action quiet title. Property on appellant held mortgage sold appellee taxes. Appellant notified pending did learn until more than two years later, redemption had run mortgagor still owed money mortgage. Appellee filed suit state court seeking title upheld appellant's contention it received constitutionally adequate its opportunity after sale. Court Appeals affirmed. Held: manner provided meet requirements Due Process Clause Fourteenth Amendment. Pp. 795- 780. (a) Prior will affect interest life, liberty, protected Clause, State provide "notice reasonably calculated, under circumstances, apprise interested parties pendency afford them present their objections." publication calculated inform can effective means such as mailed notice. Mullane v. Central Hanover Bank & Trust Co., 339 306, 314, 70 652, 657, 94 L.Ed. 865. 795-797 (b) Since clearly has legally interest, him Constructive identified public record does satisfy due process requirement Mullane. Neither posting nor are "such desirous actually informing [mortgagee] might adopt accomplish it." Mullane, supra, 315, S.Ct., 657. Personal required even though sophisticated creditors have disposal discover whether been proceedings therefore likely initiated. 798-800 . Ind.App., 427 N.E.2d 686, reversed remanded. 1 William J. Cohen, Elkhart, Ind., appellant. 2 Robert W. Miller, appellee. 3 MARSHALL, Justice. 4 This appeal raises provides o with proceeding sell mortgaged 5 * To secure obligation pay $14,000, Alfred Jean Moore favor Mennonite Board Missions (MBM) Indiana, purchased from MBM. recorded Elkhart County Recorder's Office 1, 1973. Under terms agreement, responsible paying Without MBM's knowledge, however, she failed 6 law annual payments delinquent fifteen months longer. Ind.Code § 6-1.1-24-1 et seq. sale, 6-1.1-24-3. his last known address. 6-1.1-24-4.1 Until 1980, taxes.2 7 After provided, treasurer holds auction highest bidder. 6-1.1-24-5. entire paid. 6-1.1-24-9. other liens existed issued. Ibid. 8 two-year "owner, occupant, lienholder, person in" 6-1.1-25-1. individual sum sufficient cover purchase price special assessments following plus additional percentage specified statute. §§ 6-1.1-25-2, 6-1.1-25-3. turn remits payment 9 statutory Before executing delivering deed, 6-1.1-25-6. No required. thirty deliver purchaser, 6-1.1-25-4, thereby "an simple absolute, encumbrances." 6-1.1-25-4(d). 10 obtaining initiate 6-1.1-25-14. previous lienholders, others claim longer They defeat conveyed only proving, inter alia, subject to, assessed for, sold, p id properly executed. 6-1.1-25-16. 11 In 1977 initiated Moore's statute: posted published announcement mail. MBM informed either Moore. $1,167.75 Richard Adams August 8, 1977. appeared took steps thereafter Following her continued make month MBM, result realize sold. On 16, 1979, first learned By $8,237.19. 12 November opposition Adams' motion summary judgment, contended trial constitutional challenge. 686 (1981). We noted probable jurisdiction, --- ----, 204, 74 164 (1982), we now reverse. II 13 865 (1950), recognized Amendment, Invoking "elementary fundamental process," ibid, settle accounts common trust fund beneficiaries whose names addresses were known. explained actual inadequate those could notice: 14 "Chance alone brings attention local resident advertisement small type inserted back pages newspaper, if makes home outside area newspaper's normal circulation odds information never reach large indeed. chance further reduced when here name supposed attract, acquaintances call attention. weighing sufficiency basis equivalence unable regard feint." Id., 658.3 15 subsequent cases, adhered unwaiveringly principle announced Walker City Hutchinson, 352 112, 200, 178 (1956), example, condemnation newspaper landowner city official records. Similarly, Schroeder New York, 371 208, 83 279, 255 (1962), concluded notices address readily ascertainable both records rolls. Most recently, Greene Lindsey, 456 444, 102 1874, 72 d 249 summons door tenant's apartment providing forcible entry detainer actions. See also Memphis Light, Gas Water Div. Craft, 436 13-15, 98 1554, 1562-1563, 56 (1978); Eisen Carlisle Jacquelin, 417 156, 174-175, 2140, 2150-2151, 40 732 (1974); Marin England, 385 99, 102, 87 274, 276, 17 197 (1966); Covey Somers, 351 141, 146-147, 76 724, 727, 100 1021 (1956); York N.H. H.R. 344 293, 296-297, 73 299, 301, 97 333 (1953). 16 controlled analysis begin with, possesses substantial significantly affected law, owner's together mortgagor's repay debt secured 32-8-11-7. A mortgagee's security generally priority over claims attaching takes precedence virtually including antedate execution 32-8-11-4. immediately drastically diminishes value granting tax-sale creditors. Ultimately, complete nullification since encumbrances conclusion period. Cf. Wiswall Sampson, 55 52, 67, 322 (1852). When publicly recorded, constructive supplemented available address, service. But unless identifiable, mandate Mullane.4 18 posting, U.S., Because they designed primarily attract prospective purchasers unlikely who, although do efforts keep abreast notices. 116, 202; 296, 301; owne , privity creditor take necessary preserve own cannot expected lead mortgagee. Nelson City, 103, 107-109, 195, 197-199, 171 (1956). County's use these less reliable forms reasonable where, here, inexpensive efficient mechanism available." 455, 1881. 19 place, need involve complex commercial transaction among knowledgeable parties, well least threatened More importantly, party's ability safeguard interests relieve obligation. It true particularly extensive often aware inexperience incompetence. See, e.g., 1562-1564; supra. follow forego relatively modest administrative burden resourceful.5 297, 301. certain ensure minimum precondition adversely liberty any party, unlettered versed practice, ascertainable. Furthermore, knowledge delinquency equivalent pending. latter "was [County] obliged give personally appellant—an mailing single letter would discharged." 214, 283. 20 conclude Amendment.6 Accordingly, judgment cause remanded inconsistent opinion. 21 so ordered. 22 Justice O'CONNOR, whom POWELL REHNQUIST join, dissenting. 23 Today, departs decisions conducts party long identity location "reasonably ascertainable." Ante, 800. Applying novel unjustified case, decides mortga ee involved deserved provided. I dissent because Court's approach unwarranted general rule case. 24 established "[a]n elementary accorded finality emphasized "the practicalities peculiarities met," id., 314-315, 115, 202, 211-212, 281-282, (1962); 449-450, 1877-1878, (1982). key focus "reasonableness" chosen State. Whether particular method depends outcome balance between "interest State" sought Amendment." Of course, "[i]t our responsibility prescribe form [State] should adopt." Greene, n. 9, 1880, 9. primary strike balance, upset strikes irrational manner. 25 From on, adamantly refused commit "itself formula achieving determining utilized what test meet." Indeed, impossibility setting up rigid kind given; vary circumstances conditions." Walker, 202 (emphasis added). Our cases always reflected "[t]he very nature negates concept inflexible procedures universally applicable every imaginable situation." Cafeteria Restaurant Workers Union, Local 473 McElroy, 367 886, 895, 81 1743, 1748, 1230 (1961). Mathews Eldridge, 424 319, 334-335, 96 893, 902-903, 47 (1976). A. 26 Although purports settled principles decision today squarely balancing developed. whenever "[n]otice [the party's] knowing stake future espouses ostensibly affected. flat rejection view "formula" devised adequately evaluates constitutionality procedure created class cases. Despite fact itself accepted satisfied dictates circumstances,1 Court, citing suffice stake. 27 justify broad rule, inability imposing greater burdens State, able "to obligation." 799. Apart ignoring totality determines notice, neglects consider imposed upon defined protect interest. As recently Term, inquiry effect "a cases." 451, 1878 fashioning creditor," ante, 799, ignores well-settled "procedural rules shaped risk error inherent truth finding applied generality rare exceptions." 344, 907; see Califano Yamasaki, 442 682, 696, 99 2545, 2555, 61 176 (1979). members possess interests, taken into account "totality circumstances," criterion " 'is possibility conceivable injury just character requirements, having reference deals.' 657 (quotingAmerican Land Co. Zeiss, 219 47, 31 207, 82 (1911)). 28 suggests really ever 796-797, 3. reasons characterization personam rem relevant sufficient,2 "power resort service" depended "historic antithesis" proceedings, 312-313, 656, became insufficient proceedings. 29 plain language expressly reject per se insufficient. 312-314, 656-657. Moreover, errs thinking justification distinction types historical act reasonabl keeping themselves North Laramie Hoffman, 268 283, 45 491, 494, 69 953 (1925); Ballard Hunter, 204 241, 262, 261, 269, 51 461 (1907). discussed Part dissent, infra, acknowledged, reject, vitality notion owners some 316, 658. B condition receiving new applying exercise diligent efforts" mortgagee, 798, 4, effort whereabouts record." Again, relied analysis, knew incapacity "very easily Schroeder, 212-213, 282. 318, 659; Town Summers, 146, 727 202-203; 175, 2151, (1974).3 today, how far go ascertain party. despite include 798-799, concludes identifiable." 798. uncertainty becomes ominous light duty location, similar means, exists implicated. Once effectively rejects progeny accepting applies receive stake, recorded. observed engaged reached opposite result. 32 doubted vital collection revenues whatever chooses: "In authorizing enforce lands sovereign power raise revenue essential carry affairs administration laws. 'The taxation require same taking private eminent domain.' Leigh Green, 193 79, 89, 390, 392, 48 623 (1904) (quoting Bell's Gap Railroad Company Pennsylvania, 134 232, 239, 533, 535, 33 892 (1890)). decided accommodate respect through time.4 equally strong avoiding "reasonable" instant limited Rather, someone check taxpayer perhaps off, dependable 34 Against weigh possessed class—in mortgagees.5 Contrary evaluated simply frequently found "must judged practical application men ordinarily conducted." 494. 35 Chief Marshall wrote ago "it part prudence [property], guard persons situation Mary, (9 Cranch) 126, 144, 678 (1815). rejected principle, and, indeed, "[a] indulge" assumption "usually arranges direct attack possessory proprietary rights." inadequate, where is, purposes, way threatens adverse completely unexpected become fortuitous occasion reading [that may] attention." individuals reason expect being 36 sales concerned. Unlike accounting, assessment occurs regularity predictability, characterized sense. regular event, taxes, focus, Further, approximately 95% outstanding United States instit tional lenders federally-supported agencies. Dept. Commerce, Statistical Abstract States: 1982-83, 511 (103d ed.).6 highly unlikely, all, significant number unaware consequences ensue mortgagors fail 37 There doubt safeguarded effort. auctions commence second Monday year. 6-1.1-24-2(5). weeks date 6-1.1-24-3(a). different newspapers 6-1.1-24-3(a); 6-1.1-22-4(b). protection offered measures suggested below: copies assessments, deposit monies escrow account, checked determine Pet. Cert. 27. 38 unreasonable failing so, save lack care. weighs statutes process. dissent. considered "owner" purposes 6-1.1-24-4. First Savings Loan Assn. Furnish, 174 Ind.App. 265, 596, 600, (Ind.App.1977). 6-1.1-24-4.2, added annually requested agreed fee, exceed $10, cost sending events occurred 1980 amendment, amendment us. premises underlying concerning judicial proceedings: rights depending actions personam. 312, 656. Shaffer Heitner, 433 186, 206, 2569, 2580, 53 683 (1977). Traditionally, based jurisdiction authority defendant's person, bind submit jurisdiction. Hamilton Brown, 161 256, 275, 585, 592, 691 (1896); Arndt Griggs, 320, 557, 558, 918 (1890); Pennoyer Nef 95 714, 726, 733-734, 565 (1878) ("Due appearance defendant bound rendered."). Hess Pawloski, 274 352, 632, 71 1091 (1927), registered mail, place service, deemed contrast, quasi court's territory, 196-205, 2575-2580, nonresidents traditionally understood order questions proceed otherwise nonresidents. At notifying believed "[p]rocess tribunals another State." Neff, 727. 255, 266, result, nonresident acquired shall represented called requisition." 269. "fail[ed] get ordinary publications usually [was] misfortune." Rarely corresponding resided identities Even rem, 326-327, 560-561. Where residents ascertained inquiry, 592; American 61-62, 65-66, 206-207, (1911). Beginning recognized, contrary earlier line "that directly affects divesting court." 2580. rejecting traditional distinguishing actions, left claimants vagaries indirect comparable previously page. file recorder "MENNONITE MISSIONS corporation, Wayne County, Ohio." assume efforts. 317, 658-659, (1950). Simply "Mennonite Missions, Ohio," quite well-known skill postal officials employees making proper delivery letters defectively addressed." Grannis Ordean, 234 385, 397-398, 779, 784, 58 1363 (1914). suggest, governmental body undertake extraordinary record. ultimately presents whether, executes delivers right Griffin Griffin, 327 220, 229, 66 556, 560-561, 90 635 (1946). failure deprived question. "[p]ersonal regarded indispensable residents, unnecessary nonresidents." incorrect asserting rarely involved, Longyear Toolan, 209 414, 417-418, 506, 507-508, 52 859 (1908). Note, Constitutionality Publication Tax Sale Proceedings, 84 Yale L.J. 1505, 1507 (1975) ("This [permitting notice] extended involving owned residents."). contrasted "at hand" "whose diligence ascertained." 658, 659. read facts addition, search "under standards diligence" "may sale." 800, 5. better judge wants debts Court. say espoused circumstances. flexibility atypical mortgagees. ." certainly true; change professional lender, voluntarily entered fairly below observed: "The citizens' business ventures." 27,

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