811 S.E.2d 273
W. Va.2018Background
- Southland Properties failed to pay property taxes on two Marion County tracts; Kenneth G. Jones Jr. purchased the tracts at a 2016 delinquent tax sale and complied with statutory steps to secure deeds.
- Notices to redeem were served; Southland did not redeem but filed Chapter 11 bankruptcy on the last redemption day, triggering the automatic stay and prompting refund of Jones’s purchase funds.
- Bankruptcy was dismissed months later; Deputy Commissioner Rollyson refused to issue deeds because more than 30 days had elapsed since Jones’s right to deeds accrued and he interpreted W. Va. Code § 11A-3-59 as forbidding issuance after 30 days except when ordered under § 11A-3-60.
- Jones filed a § 11A-3-60 action to compel delivery of the deeds; the circuit court granted summary judgment for Jones and later ordered delivery of the deeds to him.
- Southland moved to intervene after the hearing (but before the final order), claiming it was an indispensable party because it still owned the property until deeds were delivered and had a statutory right to redeem; the circuit court denied intervention and Southland sought a writ of prohibition from the Supreme Court.
- The Supreme Court majority concluded Southland was not an indispensable party because it made no attempt to redeem and the limited § 11A-3-60 proceeding addressed only delivery of deeds, not challenges to the sale or notice; writ denied (Justice Ketchum dissented).
Issues
| Issue | Plaintiff's Argument (Jones) | Defendant's Argument (Southland / Rollyson) | Held |
|---|---|---|---|
| Whether delinquent taxpayer (Southland) was an indispensable party to a § 11A-3-60 proceeding to compel deed delivery | Jones: § 11A-3-60 contemplates only purchaser and deputy commissioner; delinquent taxpayer need not be joined | Southland: as record owner with redemption right until deed delivery, it must be joined to protect property interests and due process | Held: Not indispensable—because Southland never attempted to redeem and § 11A-3-60 is limited to compelling deed delivery, so nonjoinder not clearly erroneous |
| Whether the circuit court erred by denying intervention under Rules 19/24 | Jones: intervention unnecessary; relief complete without owner; alternative statutory remedies exist for sale/deed challenges | Southland: intervention timely and necessary to raise defects (notice, restart bidding, challenge consideration) and to protect redemption rights | Held: Denial proper—disposition of § 11A-3-60 action would not impair Southland’s rights absent an attempted redemption; alternate statutory remedies preserve its claims |
| Whether bankruptcy-related delay tolled the 30-day limit in § 11A-3-59 or required court order under § 11A-3-60 | Jones: § 11A-3-60 allows purchaser to compel deed within six months when circumstances beyond purchaser’s fault prevented delivery | Rollyson: § 11A-3-59 prohibits issuance after 30 days unless court-ordered; he could not unilaterally toll for bankruptcy | Held: Circuit court (not reviewed here) granted Jones relief under § 11A-3-60; Supreme Court limited review to intervention issue |
| Whether Southland was denied due process by exclusion from the § 11A-3-60 proceeding | Southland: exclusion impaired ability to protect property and contest sale defects | Jones: Southland had statutory redemption and later statutory causes to set aside deed; had ample opportunity and declined to redeem | Held: No due process violation—statutory scheme provides protections and Southland had not pursued redemption before deed delivery |
Key Cases Cited
- Bonafede v. Grafton Feed & Storage Co., 81 W. Va. 313 (W. Va. 1917) (owners claiming interests in title should be made parties when canceling a cloud on title)
- United Fuel Gas Co. v. Morley Oil & Gas Co., 101 W. Va. 73 (W. Va. 1926) (successors in title are necessary parties when rights in land are directly affected)
- O'Daniels v. City of Charleston, 200 W. Va. 711 (W. Va. 1997) (parties with real property interests are indispensable when proceedings directly affect those interests)
- Ancient Energy, Ltd. v. Ferguson, 239 W. Va. 723 (W. Va. 2017) (title to delinquent property remains with owner until purchaser completes statutory steps for deed)
- Mingo Cnty. Redevelopment Auth. v. Green, 207 W. Va. 486 (W. Va. 2000) (emphasizing policy of title certainty and legislatively enhanced protections for delinquent landowners)