Manufacturers & Traders Trust Co. v. Luzerne County Tax Claim Bureau
2012 Pa. Commw. LEXIS 279
Pa. Commw. Ct.2012Background
- Luzerne County Tax Claims Bureau conducted an upset tax sale for real property owned by Michael J. and Monica Kizis after an upset price remained unsold.
- Bureau sought court permission to conduct a judicial tax sale under Section 611 of the Tax Sale Law; the trial court granted the petition and ordered notice.
- Bank did not appear at the May 27, 2011 hearing; sale proceeded and Purchaser acquired the Property free of liens on August 10, 2011.
- Bank filed a petition to vacate the sale, alleging lack of proper notice under Sections 611 and 607.13 of the Tax Sale Law; the court allowed Purchaser to intervene.
- Bank later argued failure to use the Bank’s full address and the presence of a non-listed address rendered the notice defective; the trial court denied relief and the Bank appealed.
- Court held that notice to the Bank did not comply with Section 611 because the Bank’s full address (including Attn: General Counsel’s Office) was not used and the 1100 Wehrle Drive address was not in Bank’s lien documents; sale vacated.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bureau complied with Section 611 notice to the Bank. | Bank argues Bank not notified at last known address. | Bureau complied by serving notices via certified mail. | No; notices failed to use full last known address. |
| Whether potential Section 607.1 defects affect validity. | Bank asserts 607.1 requires further efforts where receipt is doubtful. | Bureau’s compliance with 611 suffices. | Not resolved due to outcome favoring Bank on 611. |
| Whether the Bank is entitled to reinstatement of its lien as alternative relief. | Bank seeks lien reinstatement if sale vacated. | Bureau contends relief unnecessary if sale vacated. | Not reached; alternative relief not decided. |
Key Cases Cited
- Willard v. Delaware Cnty. Tax Claim Bureau, 921 A.2d 1273 (Pa.Cmwlth.2007) (notice purposes and due process limits on tax sales)
- In re Tax Claim Bureau of Westmoreland Cnty., 149 Pa. Cmwlth. 582 (Pa.Cmwlth.1992) (strict compliance required for notice to lienholders)
- Allegheny Cnty. Inst. Dist. v. Dep’t of Pub. Welfare, 668 A.2d 252 (Pa.Cmwlth.1995) (statutory words are to be given their plain meaning)
- In re Dauphin Cnty. Tax Claim Bureau, 834 A.2d 1229 (Pa.Cmwlth.2003) (review limits in judicial tax sale cases)