Davis v. Potter

CourtDistrict Court, Virgin Islands
DecidedMarch 30, 2024
Docket1:22-cv-00062
StatusUnknown

This text of Davis v. Potter (Davis v. Potter) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Potter, (vid 2024).

Opinion

DISTRICT COURT OF THE VIRGIN ISLANDS DIVISION OF ST. CROIX

CHARLOTTE P. DAVIS a/k/a ) CHARLOTTE POOLE DAVIS, ) ) Plaintiff ) ) v. ) Civil Action No. 2022-0062 ) OSBERT POTTER, Former Lt. ) Governor of the Virgin Islands, ) TREGENZA ROACH, Lt. Governor ) of the Virgin Islands, ALBERT BRYAN, ) JR., Governor of the Virgin Islands, ) GOVERNMENT OF THE VIRGIN ) ISLANDS, ) ) Defendants. ) ____________________________________)

Appearances: Charlotte P. Davis, Pro Se St. Croix, U.S.V.I.

Ariel Marie Smith Francois, Esq. St. Thomas, U.S.V.I. Eric S. Chancellor, Esq. St. Croix, U.S.V.I. Venetia H. Velazquez, Esq. St. Croix, U.S.V.I. For Defendants

MEMORANDUM OPINION Lewis, District Judge THIS MATTER comes before the Court on the Report and Recommendation (“R&R”) submitted by Magistrate Judge Emile A. Henderson III. (Dkt. No. 35). In his R&R, Magistrate Judge Henderson recommends that Plaintiff Charlotte P. Davis’ (“Plaintiff”) Amended Motion for Preliminary Injunction (Dkt. No. 16) be denied and Plaintiff’s earlier-filed Motion for Preliminary Injunction (Dkt. No. 7) be denied as moot. Plaintiff filed an objection to the R&R (Dkt. No. 38), and Defendants filed an opposition to Plaintiff’s objection (Dkt. No. 42). For the reasons that follow, the Court will adopt Magistrate Judge Henderson’s R&R as modified herein and will deny Plaintiff’s Motions. I. BACKGROUND On December 2, 2022, Plaintiff initiated this action against Defendants (Dkt. No. 1), and

moved for a preliminary injunction (Dkt. No. 7).1 Plaintiff subsequently filed an Amended Complaint (Dkt. No. 11) and an Amended Motion for a Preliminary Injunction (Dkt. No. 16). According to the allegations in the Amended Complaint, on June 5, 2012, Plaintiff purchased Plot. No. 44 Lowry Hill, Eastend “A” Quarter (“the Property”)—consisting of .533 acres—for $18,100 at a public tax auction sale conducted by the Lieutenant (“Lt.”) Governor’s Tax Collection Office. (Dkt. No. 11 ¶ 12). The Property was sold for nonpayment of delinquent property taxes by the previous owners. Id. On July 9, 2013, the Lt. Governor’s Office issued a Certificate of Purchase, which purports to convey the deed to the Property to Plaintiff. (Dkt. No. 11-1). The Certificate of Purchase notes, inter alia, that, once recorded, it would vest title to the

Property in Plaintiff, free from all mortgages, liens, or other encumbrances. Id. On July 24, 2015, the Lt. Governor’s Office issued a “Notice of Cancellation of Tax Auction Sale” (“Notice of Cancellation”), purporting to void a January 18, 2012 tax auction sale as well as Plaintiff’s title to the Property. (Dkt. No. 11-2). On October 27, 2015, Plaintiff wrote to former Lt. Governor Osbert Potter, asserting that, because she did not purchase the Property at the

1 Magistrate Judge Henderson previously issued an R&R dated December 5, 2022 recommending that Plaintiff’s original Complaint (Dkt. No. 1) be dismissed and that Plaintiff’s original Motion for a Preliminary Injunction (Dkt. No. 7) be denied as moot. (Dkt. No. 9). As (1) Plaintiff has filed an Amended Complaint and (2) Magistrate Judge Henderson’s subsequent R&R similarly recommends that Plaintiff’s original Motion for a Preliminary Injunction be denied as moot, the Court will reject Magistrate Judge’s Henderson’s original R&R as moot. January 18, 2012 tax auction sale, the Notice of Cancellation was “defective.” (Dkt. No. 11-3). According to Plaintiff, she never received a response to her letter or to the numerous telephone calls that she placed to the Lt. Governor’s Office regarding the matter. (Dkt. No. 11 ¶ 19). Further, Plaintiff asserts that she never received a notice cancelling the June 5, 2012 tax auction sale, at which she had purchased the Property. Id. ¶ 17.

Plaintiff alleges that, in August 2021, she learned of the Lt. Governor’s Property Tax Delinquency List. Id. ¶ 20. This list identified Plaintiff as the owner of the Property and indicated that she owed $620 in property taxes. Id. ¶ 21; see also (Dkt. No. 11-4). Plaintiff paid the outstanding property taxes—totaling $831.77—on September 28, 2021. (Dkt. No. 11 ¶ 22); see also (Dkt. No. 11-5). The Lt. Governor’s Office then issued Plaintiff a Real Property Tax Clearance Letter on October 1, 2021, again identifying her as the owner of the Property. (Dkt. No. 11 ¶ 23); see also (Dkt. No. 11-6). On or about July 18, 2022, Plaintiff submitted a document to the Cadastral Division of the Lt. Governor’s Office for recording against the Property, together with the Tax Clearance Letter.

(Dkt. No. 11 ¶ 24). The document was returned to Plaintiff, requiring her to verify her ownership of the Property with the Office of the Recorder of Deeds (“ORD”). Id. When she sought this verification, she learned that the Property was recorded in the name of the previous owners. Id. ¶ 25. Such ownership was evidenced by a Special Deed for Legally Deficient Auction (“Special Deed”), dated June 21, 2017 and signed by former Lt. Governor Osbert Potter. Id.; see also (Dkt. No. 11-7). Plaintiff alleges that, despite the Special Deed, Defendants have retained her initial purchase price of $18,100. (Dkt. No. 11 ¶ 28). Plaintiff maintains that 33 V.I.C. § 2549(a)(4)—which governs the penalties for improperly conducted tax auction sales—is “overly broad and violates the 14th Amendment of the United States Constitution” by allowing the Lt. Governor to “void lawfully issued Certificates of Purchase without affording the purchaser notice and due process of law.” Id. ¶ 10. By applying this statute to convey the Special Deed, Plaintiff argues that Defendants’ actions were arbitrary, capricious, discriminatory and constituted a taking of Plaintiff’s real property without due process, also in violation of the Fourteenth Amendment. Id. ¶ 30. Plaintiff further contends that the Special Deed

itself is a defective document, as it fails to conform to the local statutory requirements for a deed. Id. ¶¶ 26-27. Accordingly, in the Amended Complaint, Plaintiff seeks three forms of relief. First, she seeks a declaratory judgment regarding the rights, title and ownership of the Property. Id. at 13. Second, she seeks a “Preliminary/Permanent injunction” directing Defendants to remove the Special Deed from ORD’s records as well as any other encumbrances relating to the tax auction sale where Plaintiff purchased the Property. Id. Third, she seeks damages from Defendants on the grounds of Slander of Title. Id. On February 3, 2023, Plaintiff filed an Amended Motion for a Preliminary Injunction. (Dkt.

No. 16). In it, she re-asserts her request for a preliminary injunction directing Defendants to remove the Special Deed from ORD’s records as well as any other encumbrances relating to the tax auction sale where Plaintiff purchased the Property. Id. at 1-2. Plaintiff argues that she has and will suffer irreparable harm, as she has plans for the development of this “unique” Property that she will be unable to continue until the cloud over the title is removed. Id. ¶ 1. Plaintiff maintains that a refund of the purchase price would be an inadequate remedy in this matter, as a refund could not compensate for the appreciation in the monetary value of the Property since Plaintiff’s purchase nor the intrinsic value of the Property to Plaintiff. Id. ¶ 2. Plaintiff also asserts that the threatened injury to her far outweighs any injury to Defendants, who she argues have no investment or legal interest in the Property. Id. ¶ 3. Further, Plaintiff contends that there is a strong likelihood that she will prevail on the merits of this action, in light of the fact that the documents purporting to void her purchase of the Property are “defective.” Id. ¶ 4. Defendants did not file an opposition to Plaintiff’s Motion. On July 7, 2023, Magistrate Judge Henderson issued the R&R recommending that

Plaintiff’s motions be denied. (Dkt. No. 35).

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Davis v. Potter, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-potter-vid-2024.