Meyer v. Haskett
251 P.3d 1287
Colo. Ct. App.2010Background
- A stipulated judgment for past-due child support was entered against debtor and a writ of execution was recorded.
- The debt was allegedly assigned to the Sarah D'Ann Haskett Educational Trust for the child's education.
- Before judgment, debtor conveyed all property interests to an LLC of which he was sole member.
- A 1983 tax lien on the property was purchased and later deeded to a third party after a series of assignments; a 2007 treasurer's deed issued after redemption period.
- A sheriff's sale was held in 2007 but an injunction prevented completion; purchaser then filed to quiet title; trust answered but debtor and LLC did not respond, resulting in default judgments.
- The trial court granted summary judgment to purchaser and denied motions to vacate for both trust and debtor; this appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the treasurer's deed was properly issued and notice given | Trust contends notice defective under § 39-11-128(1)(a) | Purchaser asserts notice to record owners was sufficient and strict compliance required | No genuine issue; notice not required for LLC since debtor had no record interest |
| Whether the trust has a record interest that would trigger notice rights | Trust claims an interest via writ against debtor's property | LLC held the property; trust lacks record ownership through debtor | Trust lacked interest of record; not entitled to notice |
| Whether the LLC’s entity theory affects the lien and notice | Trust argues lien can reach property despite LLC ownership | Entity theory confines member rights; debtor had no interest post-transfer | Entity theory applied; debtor had no record interest in property |
| Whether debtor or trust showed meritorious defenses to default | Trust seeks relief from judgment due to alleged title defects | Debtor/Trust had no interest and cannot challenge treasurer's deed | Court affirmed denial of relief from judgment; no meritorious defense established |
Key Cases Cited
- Harrison v. Everett, 308 P.2d 216 (Colo. 1957) (treasurer's deed conveys all rights of former owner when tax title vests)
- Bolser v. Board of Comm'rs, 100 P.3d 51 (Colo.App. 2004) (treasurer's deed effects removal of other interests)
- Wittemyer v. Cole, 689 P.2d 720 (Colo.App. 1984) (notice requirements are jurisdictional)
- Turkey Creek, LLC v. Rosania, 953 P.2d 1306 (Colo.App. 1998) (notice to record owners to redeem)
- Winter Park Devil's Thumb Investment Co. v. BMS Partnership, 926 P.2d 1253 (Colo. 1996) (notion of right to redeem and notice relevance)
- Notch Mountain Corp. v. Elliott, 898 P.2d 550 (Colo. 1995) (principles on notice and interests in land)
- Godfrit v. Judd, 182 P.2d 907 (Colo. 1947) (record ownership concept for notices)
- People v. Palomo, 31 P.3d 879 (Colo. 2001) (standing to challenge third-party rights requires title)
- Guaranty Bank & Trust Co. v. LaSalle Nat'l Bank Ass'n, 111 P.3d 521 (Colo.App. 2004) (constructive notice via proper recording)
- Board of Comm'rs v. Timroth, 87 P.3d 102 (Colo. 2004) (public records and notice in tax sales)
- School Dist. No. 6 v. Russell, 396 P.2d 929 (Colo. 1964) (quiet-title reliance on one's own title)