Commonwealth v. Investment Resource Holding, Inc.
168 A.3d 225
| Pa. Super. Ct. | 2017Background
- Investment Resource Holding, Inc. (IRH) purchased 519 N. 11th St. at a 2014 Lebanon County Tax Claim Bureau upset sale; IRH’s representative (Hartman) registered, bid, signed the sale agreement, and issued payment.
- The sale was confirmed by court order, the tax deed was prepared and recorded on November 21, 2014, and notices about the finality of the sale were in the sale terms.
- A fire severely damaged the property on December 2, 2014; the Tax Claim Bureau mailed the recorded deed to IRH on December 3, 2014.
- IRH’s counsel sent a letter stating IRH would not accept the deed; the deed was returned unclaimed. IRH then failed to remedy unsafe conditions and received municipal citations for code violations.
- At a summary hearing IRH conceded noncompliance with the directives but argued it was not the property owner because it had refused delivery of the deed (seeking to rescind the sale); the trial court found IRH guilty of multiple summary offenses and imposed fines and restitution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether IRH held title/equitable ownership before deed acceptance | Commonwealth: IRH became equitable owner at fall of hammer and by complying with sale terms; thus liable for property liabilities even before delivery of deed | IRH: refusing to accept the recorded deed rescinded the sale; no legal ownership, so no responsibility for post-sale liabilities | Court: IRH acquired equitable ownership upon agreement/confirmation and is bound by sale terms; acceptance of deed not required to bear liabilities — guilty |
| Whether advising Tax Claim Bureau it would not accept the deed divested IRH of ownership/liability | Commonwealth: unilateral rejection of delivery did not negate already-vested equitable title or recorded deed; IRH remained responsible | IRH: notice to Tax Claim Bureau constituted rejection/recission, relieving IRH of obligations after that date | Court: Rejection did not relieve IRH; equitable ownership (and attendant liabilities) persisted despite refusal to accept delivery; convictions affirmed |
Key Cases Cited
- Commonwealth v. Devries, 112 A.3d 663 (Pa. Super. 2015) (standard of review for sufficiency of evidence in criminal appeals)
- Commonwealth v. Decker, 698 A.2d 99 (Pa. Super. 1997) (standard of review for nonjury trials)
- Marx Realty & Improv. Co. v. Boulevard Ctr., Inc., 156 A.2d 827 (Pa. 1959) (purchaser at public sale acquires a vested interest when complying with sale terms)
- DiDonato v. Reliance Standard Life Ins. Co., 249 A.2d 327 (Pa. 1969) (equitable conversion: purchaser bears risk of loss after agreement and before conveyance)
- Byrne v. Kanig, 332 A.2d 472 (Pa. Super. 1974) (equitable owner liable for liens and liabilities incurred before conveyance)
- Pivirotto v. City of Pittsburgh, 528 A.2d 125 (Pa. 1987) (equitable title from tax sale confers property interest and responsibilities prior to formal deed)