Adair Holdings v. Johnson
304 Neb. 720
Neb.2020Background:
- Adair Asset Management and BMO Harris bought a 2014 tax-sale certificate for Johnson’s property and paid additional delinquent taxes; they later quitclaimed any interest to Adair Holdings.
- After waiting the statutory 3-year period, Adair Management sent certified-mail notice to Johnson (returned unclaimed) and published notice in April 2017 before applying for a tax deed.
- The published notice quoted a newer statutory provision saying owner-occupied redemption expires 45 days after application, but the 2009 statute governing this certificate provided that redemption expired on issuance of the tax deed.
- Adair Management applied for and received a tax deed in July 2017; Johnson discovered the deed, attempted to tender redemption payment within the period stated in the published notice, but the treasurer refused because the deed had issued.
- Johnson challenged the tax deed and counterclaimed to quiet title; the district court granted summary judgment for Johnson, finding the deed void for defective notice and quieting title in Johnson. Adair Holdings appealed.
Issues:
| Issue | Plaintiff's Argument (Adair Holdings) | Defendant's Argument (Johnson) | Held |
|---|---|---|---|
| Standing to challenge deed under §77‑1844 | Johnson lacked standing because he did not pay before deed issuance | Tender of payment suffices; “paid” includes tender | Tender equals payment for standing; Johnson had standing |
| Validity of tax deed given notice misstatement | Statutory notice requirements were met; deed valid | Notice misstated redemption deadline (wrong statute) → deed void | Misstatement of redemption period renders the tax deed void |
| Requirement of detrimental reliance to void deed | Deed should stand unless landowner detrimentally relied on misstatement | No such reliance requirement; statutory defect alone defeats deed | No detrimental‑reliance requirement; misstatement alone invalidates deed |
| Equitable reimbursement of taxes to certificate holder | If deed voided, Johnson should be ordered to reimburse delinquent taxes paid | Adair failed to plead or pursue reimbursement below; Adair Holdings lacks showing of entitlement | Court properly declined reimbursement; Adair failed to preserve claim and did not show right to recover |
Key Cases Cited
- Wisner v. Vandelay Investments, 916 N.W.2d 698 (Neb. 2018) (summary‑judgment and quiet‑title standards)
- Williamson v. Bellevue Med. Ctr., 934 N.W.2d 186 (Neb. 2019) (tax‑deed challenges governed by statute)
- Ottaco Acceptance, Inc. v. Larkin, 733 N.W.2d 539 (Neb. 2007) (tender of payment suffices to establish standing)
- Thomsen v. Dickey, 60 N.W. 558 (Neb. 1894) (strict compliance with statutory notice is jurisdictional)
- Kuska v. Kubat, 22 N.W.2d 484 (Neb. 1946) (misstatement in notice invalidates tax deed)
- Wygant v. Dahl, 42 N.W. 735 (Neb. 1889) (equitable reimbursement may be available where asserted and supported below)