M JEWELL, LLC v. Powell
2011 Ind. App. LEXIS 1784
Ind. Ct. App.2011Background
- Powell owed about $1,631 in delinquent taxes, interest, and assessments by 2009.
- Grant County sold Powell’s home at tax sale to Jewell for $5,000 on September 17, 2009 after Powell failed to file a defense for judgment.
- Jewell sent Powell notice of the sale and his redemption rights on March 23, 2010.
- Powell attempted to redeem April 28, 2010 at the Treasurer’s Office, paying about $280 believed to satisfy the obligation, based on the Treasurer’s misstatement.
- Jewell posted notice in August 2010 that it would seek a tax deed, but Powell did not receive directed instruction where to redeem; he later learned to pursue redemption through the Auditor’s Office.
- Powell’s redemption period expired September 17, 2010; Jewell petitioned for tax deed September 25, 2010; trial court denied the petition and set a 30-day redemption window.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Powell could obtain a tax deed despite missing the redemption deadline | Powell (Powell) redeemed or attempted to redeem and was misled; equity should extend period. | Statutory redemption period applies rigidly; no extension unless allowed by law. | Equity could extend redemption period due to misrepresentations. |
| Whether the trial court correctly exercised equity to pierce the statutory rule | Equity favors Powell because he acted in good faith relying on county guidance. | Court should adhere to one-year redemption limit absent equitable relief supported by law. | Trial court correctly exercised equity to prevent injustice. |
| Whether notices and procedures were properly satisfied to allow redemption | Notice provisions were complied with; Jewell and Auditor were properly informed. | Not necessary beyond statutory compliance; equitable relief still may apply. | Notice compliance was established; equitable relief remains permissible. |
Key Cases Cited
- Swami, Inc. v. Lee, 841 N.E.2d 1173 (Ind. Ct. App. 2006) (equity can pierce rigid statutory rules to prevent injustice)
- Tajuddin v. Sandhu Petroleum Corp. No. 3, 921 N.E.2d 891 (Ind. Ct. App. 2010) (equitable relief from misapplication of law can be appropriate)
- In re 2002 Lake County Tax Sale of Real Property, 818 N.E.2d 505 (Ind. Ct. App. 2004) (trial court may exercise discretion contrary to strict rules to achieve justice)
- Tracy v. Morell, 948 N.E.2d 855 (Ind. Ct. App. 2011) (findings control only to the extent covered; review for clear error)
- Bowyer v. Ind. Dep't of Natural Res., 944 N.E.2d 972 (Ind. Ct. App. 2011) (standard of review for trial court determinations)
- DeHaan v. DeHaan, 572 N.E.2d 1315 (Ind. Ct. App. 1991) (reliability of witness testimony in findings of fact)