In re the 2014 Johnson Co. Tax Sale, Town of Edinburgh v. Patrick Black, Johnson Co. Auditor, and Johnson Co. Treasurer
2015 Ind. App. LEXIS 764
Ind. Ct. App.2015Background
- Patrick Black owned a Johnson County parcel listed in the September 12, 2014 tax sale; it did not sell and the county acquired a certificate, later assigned to the Town of Edinburgh.
- Notice to Black set the redemption deadline (Feb 25, 2015) and listed components of the redemption amount; on Feb 24 Black sought the payoff amount from the Auditor’s office.
- Auditor staff (via vendor SRI) provided a redemption figure of $26,557.85; Black paid that amount on Feb 24, 2015.
- After assignment, the Town asserted additional taxes/penalties of $1,575.56 remained due; the Auditor requested Black pay the remainder, and he paid $1,575.76 to complete redemption.
- The Town petitioned for a tax deed Feb 26, 2015 claiming property was not redeemed in time; the trial court held a hearing, found Black relied on Auditor information and was prejudicially misled, and denied issuance of a tax deed.
Issues
| Issue | Town's Argument | Black/Auditor/Treasurer's Argument | Held |
|---|---|---|---|
| Whether Black failed to redeem within the statutory period | Black did not redeem before the redemption period expired; court must issue tax deed | Black timely attempted redemption and relied on Auditor’s payoff figure; was misled | Court found redemption occurred (equitable relief) and denied tax deed |
| Whether unpaid penalties justified denying redemption | Penalties remained unpaid ($1,575.56); statutory conditions for deed satisfied | Auditor/SRI’s payoff omitted post-sale penalties; omission misled Black | Court found only $210.56 in unpaid penalties originally omitted and equitable relief was appropriate |
| Whether court needed a filed objection before exercising equity | Town: statutory objection procedure required for hearing/order | Black: court may exercise equitable powers without a formal written objection; hearing occurred | Court held filing an objection is not a prerequisite to exercise equitable jurisdiction; hearing sufficed |
| Whether trial court’s findings/judgment were clearly erroneous | Town: findings insufficient; deed should issue | Black/Auditor: findings supported by evidence; equitable relief warranted | Appellate court affirmed trial court; findings supported judgment and were not clearly erroneous |
Key Cases Cited
- M Jewell, LLC v. Powell, 954 N.E.2d 1053 (Ind. Ct. App. 2011) (equity may prevent issuance of tax deed where owner was prejudicially misled by county office)
- Tajuddin v. Sandhu Petroleum Corp. No. 3, 921 N.E.2d 891 (Ind. Ct. App. 2010) (equity can pierce rigid statutory rules to prevent injustice)
- Swami, Inc. v. Lee, 841 N.E.2d 1173 (Ind. Ct. App. 2006) (trial court’s broad equitable remedial power)