38 A.3d 1112
R.I.2012Background
- Medeiros acquired the North Kingstown parcel in 1996, executed a mortgage to Bankers, and fell behind on taxes; Bankers held the mortgage through Select Portfolio Servicing.
- June 4, 1999, the town sold the property for taxes; Fiduciary bought the property and received a deed; Bankers did not receive notice of the sale.
- June 26, 2000 Fiduciary filed a petition to foreclose Medeiros's right of redemption; Medeiros was properly noticed but did not answer.
- July 28, 2000 a final decree foreclosed the redemption rights; Medeiros’s rights were barred by default.
- January 15, 2002 a judgment declared the tax sale void and vested the property back in Medeiros subject to Bankers’ mortgage; the judgment was recorded in 2002.
- May 31, 2005 a stipulation order vacated the 2001 summary judgment and vested title in Fiduciary; Medeiros lacked notice and recorded a deed to Cambra, who paid the mortgage and taxes
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the January 2002 judgment re-vest title in Medeiros? | Medeiros contends the 2002 judgment re-vested property to him and Bankers. | Fiduciary argues the 2002 judgment did not re-vest the property. | No; the 2002 judgment did not re-vest title in Medeiros. |
| Was Medeiros entitled to notice under Rule 5(a) for the stipulation order? | Rule 5(a) should have given Medeiros notice of new or additional claims. | Medeiros, in default, was barred; Rule 5(a) does not apply to post-default clarifications between others. | No, Medeiros was not entitled to notice. |
| Did Medeiros’s due process rights violate by lack of notice? | Due process required notice of vacatur and stipulation to protect his interests. | Due process satisfied by notice of the tax sale and redemption proceedings; default blocked further claims. | Due process was satisfied; no rights were violated. |
Key Cases Cited
- ABAR Associates v. Luna, 870 A.2d 990 (R.I. 2005) (tax-title stability and limits on relief after foreclosure)
- Kildeer Realty v. Brewster Realty Corp., 826 A.2d 961 (R.I. 2003) (default bars subsequent challenges to tax title)
- Picerne v. Sylvestre, 113 R.I. 598 (1974) ('forever barred' language in § 44-9-31)
- Norwest Mortgage, Inc. v. Masse, 799 A.2d 259 (R.I. 2002) (creditor barred for noncompliance with § 44-9-31)
- Sycamore Properties, LLC v. Tabriz Realty, LLC, 870 A.2d 424 (R.I. 2005) (distinguishes due process in rectifying tax-title matters)