298 Ga. 510
Ga.2016Background
- TDGA, LLC purchased property at a tax sale, then completed the statutory nonjudicial foreclosure of redemption under OCGA §§ 48-4-45 to 48-4-46, providing notice to recorded tax lienholders including Georgia Dept. of Revenue and Dept. of Labor.
- After the redemption period expired, TDGA filed a conventional (personal) quiet title action under OCGA § 23-3-40 naming all recorded interest holders, seeking a judicial declaration that redemption rights were foreclosed and title is marketable for insurance.
- The State agencies (Departments) still held recorded tax liens and moved to dismiss, asserting the suit was barred by sovereign immunity.
- The trial court found TDGA properly foreclosed redemption but dismissed the conventional quiet title action on sovereign immunity grounds, relying on Ga. Dept. of Nat. Resources v. Center for a Sustainable Coast.
- The Supreme Court affirmed: conventional (personal) quiet title suits against the State are barred by sovereign immunity, but in rem quiet title proceedings under OCGA § 23-3-60 et seq. (against the property “against all the world”) are not barred because they operate against the property, not the State.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether sovereign immunity bars a conventional (personal) quiet title action under OCGA § 23-3-40 when the State has a recorded interest | TDGA: statute allows suit to quiet title and must be able to obtain declaration that redemption was foreclosed to obtain marketable title | State: sovereign immunity bars suits against the State or its agencies; no statutory waiver in § 23-3-40 | Held: Sovereign immunity bars conventional quiet title actions naming the State; OCGA § 23-3-40 does not waive immunity |
| Whether sovereign immunity bars an in rem quiet title action under OCGA § 23-3-60 et seq. | TDGA: in rem proceeding is appropriate to determine all claims to property and resolve clouds on title | State: (implicit) sovereign immunity protects State from being sued personally | Held: In rem quiet title actions are not barred by sovereign immunity because they are actions against the property, not the State |
Key Cases Cited
- Ga. Dept. of Nat. Resources v. Ctr. for a Sustainable Coast, 294 Ga. 593 (2014) (sovereign immunity bars injunctive relief and suits against the State)
- Tanner v. Brasher, 254 Ga. 41 (1985) (state officials cannot conclusively establish state title by pleading; in rem remedies appropriate)
- United States v. Lee, 106 U.S. 196 (1882) (Eleventh Amendment/in rem principles discussed)
- Blum v. Schrader, 281 Ga. 238 (2006) (constitutional interpretation of sovereign immunity provisions)
- Colon v. Fulton County, 294 Ga. 93 (2013) (statutory consent to suit can be implied from statute operation; implied waivers not favored but possible)