968 N.E.2d 812
Ind. Ct. App.2012Background
- Property at 1701 Kilbourn Street in Elkhart placed in a tax sale in 2007; SFS purchased the tax sale certificate.
- SFS petitioned for issuance of a tax deed; court granted in 2009 before deed was recorded.
- Second tax sale occurred in 2009 due to untimely tax payments; property remained in Kratzer's name.
- SFS recorded its tax deed December 4, 2009; City later acquired lien and sought a tax deed in 2010.
- SFS issued a quitclaim to Jefferson; Jefferson recorded its deed in May 2010; city granted tax deed in June 2010.
- SFS and Jefferson moved to correct error; trial court vacated the 2010 deed issuance; appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge tax deed | SFS and Jefferson have substantial interests and recorded deeds. | Only owners of record at sale have standing to notice issues. | SFS and Jefferson had standing. |
| Designating evidence untimely | SFS designation added minimal evidence and was responsive to City motion. | Designation occurred late and violated Rule 22; should be disregarded. | Harmless error; no reversible impact. |
| Notice to SFS for second tax sale | City failed to use ordinary means notice despite having address from public records. | City complied with statutory notice by publication and available methods. | City failed to provide adequate notice; tax deed void. |
Key Cases Cited
- Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (Supreme Court, 1950) (due process requires adequate notice reasonably calculated to inform)
- Jones v. Flowers, 547 U.S. 220 (Supreme Court, 2006) (due process and actual notice requirements in notice by publication)
- Edwards v. Neace, 898 N.E.2d 343 (Ind. Ct. App. 2008) (notice requirements when notices are undeliverable; duty to act)
- In re 2007 Tax Sale in Lake County, 926 N.E.2d 524 (Ind. Ct. App. 2010) (three notices and substantial compliance; title conveyance defenses)
- Crown Coin Meter Co. v. Park P, LLC, 934 N.E.2d 142 (Ind. Ct. App. 2010) (actual notice and knowledge can trigger inquiry duty)
- Oliverio v. Chumley, 817 N.E.2d 660 (Ind. Ct. App. 2004) (ordinary means standard under 6-1.1-25)