818 S.E.2d 872
W. Va.2018Background
- The dispute concerns ownership of oil-and-gas interests in two adjacent Harrison County tracts (≈1,041 acres) that were severed from the surface in 1903 and have been producing since early 1900s.
- A “master assessment” for 100% of the mineral estate remained on the landbooks in the name of Charles Lee Andrews until 1999; beginning in the late 1980s, additional separate assessments were added in heirs’ names and generated separate tax tickets which heirs (and successors) paid.
- A tax lien assessed in the name of "Andrews, Charles Lee" for an 80% interest became delinquent for tax year 2000; the delinquent lien was sold at tax sale in 2001 and a tax deed issued to Mike Ross, Inc. (MRI) in 2003, conveying an 80% interest.
- Petitioners (L&D Investments and others, and separately Robert Hitzelberger) claim title to various undivided shares (collectively 36.44% or 20%) by chain of title and assert they (or predecessors) paid the real-property tax tickets on those shares, so the tax sale was void.
- The circuit court granted summary judgment to MRI, concluding petitioners’ interests were sold for nonpayment and that their challenges were time-barred by the three-year statute for setting aside tax deeds. Petitioners appealed; the Supreme Court of Appeals reversed and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of MRI's 2003 tax deed to 80% mineral interest | Petitioners: their and predecessors’ payments on separate landbook real-property tax tickets meant taxes were not delinquent; duplicate assessments make the tax deed void ab initio | MRI: duplicate/payments were for erroneous royalty-based personal-property assessments; payments do not defeat sale of a separate real-property assessment | Court: deed was void — double assessments and petitioners’ real-property tax payments meant no delinquency; sale void as matter of law |
| Applicability of West Virginia Code § 11A-4-4 (3-year limitation to set aside tax deed) | Petitioners: statute inapplicable because tax deed is void (not merely voidable); no limitations period for void deeds | MRI: statute bars plaintiffs’ challenge | Court: statute inapplicable to void deeds arising from duplicate assessments; no three-year bar applies |
| Sufficiency of petitioners’ title evidence (esp. Hitzelberger) | Petitioners: presented chains of title, recorded instruments showing ownership and assessments | MRI: challenged admissibility of some documents and argued petitioners lacked proof of bona fide title | Court: remanded for further proceedings as needed on Hitzelberger’s chain of title; circuit court’s summary treatment inadequate for appellate review |
| Effect of court's owner ruling on related claims (e.g., L&D v. Antero pooling) | L&D: sought declaration and relief for unauthorized pooling and royalties | MRI/others: argued relief moot if tax deed valid | Court: because MRI’s deed is void, circuit court’s mootness ruling reversed and claim remanded for resolution by trial court |
Key Cases Cited
- Wickland v. American Travellers Life Ins. Co., 204 W.Va. 430, 513 S.E.2d 657 (W.Va. 1998) (standard of review for Rule 59(e) motion same as underlying judgment)
- Painter v. Peavy, 192 W.Va. 189, 451 S.E.2d 755 (W.Va. 1994) (summary judgment reviewed de novo)
- State v. Low, 46 W.Va. 451, 33 S.E. 271 (W.Va. 1899) (payment under one assessment defeats sale under another)
- State v. Allen, 65 W.Va. 335, 64 S.E. 140 (W.Va. 1909) (where two assessments exist for same land and claim, one payment suffices; sale invalid if taxes paid elsewhere)
- State v. Cheney, 45 W.Va. 478, 31 S.E. 920 (W.Va. 1898) (forfeiture of land is harsh; courts construe strictly)