760 S.E.2d 487
W. Va.2014Background
- Catalanos owned the property of record; Sunrise purchased the delinquent 2005 tax lien and obtained a tax deed to Sunrise; the deed was recorded; notices to redeem were prepared but not properly served to Catalanos; certified mail notices to Catalanos were returned as undeliverable/unclaimed; Harpagon received the deed from Sunrise and conveyed to Don Mason, who, with Brenda Mason, purchased the property; Catalanos sued to set aside the tax deed and subsequent transfers, arguing they were not given proper notice to redeem; the circuit court granted partial summary judgment for Catalanos restoring title subject to redemption payments; Masons appealed arguing questions of fact on notice and their status as bona fide purchasers; court held the notices were not properly served and affirmed the order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was proper notice to redeem provided to Catalanos before the tax deed? | Catalanos did not receive required notice. | Sunrise attempted service per statute but failed to deliver actual notice to Catalanos. | No valid notice; tax deed invalidated. |
| Did Catalanos’ lack of actual notice defeat the deed while recognizing Masons as bona fide purchasers? | Catalanos’ lack of notice should not bar Masons’ title. | Due diligence required; Masons had notice issues. | Masons were not bona fide purchasers; title restored to Catalanos. |
| Did the circuit court err in granting partial summary judgment without material factual disputes on notice? | Questions of material fact on notice exist. | No genuine issues; notice failure is clear. | Defer to de novo review; summary judgment affirmed. |
| Are the Masons entitled to challenge the chain of title based on discovery of unrecorded interests (e.g., Sunrise→Harpagon not recorded) at purchase? | Bona fide purchaser status should shield them. | Record title defects were discoverable; inquiry notice applied. | Masons not protected; not bona fide purchasers. |
Key Cases Cited
- Wells Fargo Bank v. UP Ventures II, 223 W.Va. 407, 675 S.E.2d 883 (2009) (notice to parties of record at redemption period; due process)
- Rebuild America, Inc. v. Davis, 229 W.Va. 86, 726 S.E.2d 396 (2012) (tax deed cancellation burden on the grantee; notice obligations)
- Lilly v. Duke, 180 W.Va. 228, 376 S.E.2d 122 (1988) (due process notice requirements for tax sales)
- Burkes v. Fas-Chek Food Mart Incorporated, 217 W.Va. 291, 617 S.E.2d 838 (2005) (insufficient service when notices undelivered)
- Crowley v. Krylon Diversified Brands, 216 W.Va. 408, 607 S.E.2d 514 (2004) (service of process on corporation when mail undeliverable)
- Simmons v. Simmons, 85 W.Va. 25, 100 S.E. 743 (1919) (record title puts purchaser on inquiry notice)
- Rebuild America supra, 229 W.Va. 86, 726 S.E.2d 396 (2012) (see above)
