Derby Properties, LLC v. J. W. "Bill" Watson III, in His Official Capacity as the Tax Commissioner

CourtCourt of Appeals of Georgia
DecidedJune 27, 2018
DocketA18A0355
StatusPublished

This text of Derby Properties, LLC v. J. W. "Bill" Watson III, in His Official Capacity as the Tax Commissioner (Derby Properties, LLC v. J. W. "Bill" Watson III, in His Official Capacity as the Tax Commissioner) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Derby Properties, LLC v. J. W. "Bill" Watson III, in His Official Capacity as the Tax Commissioner, (Ga. Ct. App. 2018).

Opinion

SECOND DIVISION MILLER, P. J., ANDREWS and BROWN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. http://www.gaappeals.us/rules

June 27, 2018

In the Court of Appeals of Georgia A18A0355. DERBY PROPERTIES, LLC v. J. W. “BILL” WATSON III, IN HIS OFFICIAL CAPACITY AS THE TAX COMMISSIONER et al.

MILLER, Presiding Judge.

This appeal stems from a tax sale between Paulding County and Derby

Properties, LLC, in which Derby Properties purchased certain real property that was

subject to a nuisance abatement lien. Derby Properties appeals from the trial court’s

denial of its motion for summary judgment against J. W. “Bill” Watson III, in his

official capacity as the Tax Commissioner of Paulding County (“the County”). On

appeal, Derby Properties contends that the sale was conducted improperly because

the County utilized a nonjudicial tax foreclosure sale, instead of a judicial in rem tax

foreclosure sale. We determine that OCGA § 41-2-9 (the “nuisance abatement statute”) did not prevent the County from conducting a nonjudicial tax foreclosure

sale in this case. Therefore, we affirm.

When ruling on a motion for summary judgment, the opposing party must be given the benefit of all reasonable doubt, and the court should construe the evidence and all inferences and conclusions therefrom most favorably toward the party opposing the motion. When reviewing the grant or denial of a motion for summary judgment, this court conducts a de novo review of the law and the evidence.

(Citation and footnote omitted.) H & C Dev., Inc. v. Bershader, 248 Ga. App. 546,

547 (546 SE2d 907) (2001).

So viewed, the record shows that, after a nuisance abatement lien1 was placed

on the subject property, the County sold the property to Derby Properties in a

nonjudicial tax foreclosure sale in October 2015. Subsequently, however, Derby

Properties asked the County to return the money it had paid for the property. Derby

Properties claimed that the tax sale the County had used to enforce the nuisance

abatement lien was illegal because the County had utilized the nonjudicial tax

foreclosure procedures set forth in OCGA § 48-4-1, instead of the judicial in rem tax

1 Under OCGA § 41-2-9 (a) (7), a county may obtain a lien on private property for the abatement of a public nuisance.

2 foreclosure procedures, as outlined in OCGA § 48-4-76 et seq. When the County

refused to return the money, Derby Properties filed a petition under OCGA § 15-13-3

(the “money rule petition”), in the Superior Court of Paulding County, again

challenging the legality of the sale on this same basis. Both Derby Properties and the

County filed motions for summary judgment. The County argued, in part, that the

nuisance abatement statute did not require the County to use a judicial in rem tax

foreclosure sale to enforce the lien. The trial court awarded summary judgment in the

County’s favor and denied Derby Properties’ summary judgment motion. This appeal

followed.

1. Derby Properties claims that the nuisance abatement statute required the

County to use the judicial in rem tax foreclosure process, and that the County’s use

of nonjudicial tax foreclosure procedures renders the sale unlawful. This contention

lacks merit.

“The interpretation of statutes presents a question of law for the court.”

(Citations, punctuation, and footnote omitted.) Montgomery County v. Hamilton, 337

Ga. App. 500, 503 (788 SE2d 89) (2016). “The first step in our analysis of this issue

of statutory construction is to examine the plain statutory language.” (Citation

omitted.) Morrison v. Claborn, 294 Ga. App. 508, 512 (2) (669 SE2d 492) (2008).

3 The nuisance abatement statute provides, in part,

It shall be the duty of the appropriate county tax commissioner or municipal tax collector or city revenue officer, who is responsible or whose duties include the collection of municipal taxes, to collect the amount of the lien using all methods available for collecting real property ad valorem taxes, including specifically Chapter 4 of Title 48.

(Emphasis supplied.) OCGA § 41-2-9 (b) (2).

The methods available for collecting real property ad valorem taxes include

both judicial in rem tax foreclosure sales (OCGA § 48-4-76 (a) - (b)) and nonjudicial

tax foreclosure sales (OCGA § 48-4-1 (a) (1) (A)). See DLT List, LLC v. M7VEN

Supportive Housing & Dev. Group, 335 Ga. App. 318, 321 (1) (779 SE2d 436)

(2015), aff’d, DLT List, LLC v. M7VEN Supportive Housing & Dev. Group, 301 Ga.

131 (800 SE2d 362) (2017) (“Pursuant to OCGA § 48-4-1, if a property owner fails

to pay county property taxes, the county may issue a writ of fieri facias and conduct

a sale of the property to satisfy the unpaid taxes.”). Thus, a plain reading of this

subsection of the nuisance abatement statute evinces that the County would have been

entitled to collect the amount of the lien using either type of sale.

Moreover, the legislature expressly intended that judicial in rem tax foreclosure

procedures be an alternative to nonjudicial tax foreclosure procedures, rather than

4 replace them. The legislature made this intent abundantly clear in OCGA § 48-4-75,

which reads:

The General Assembly finds that . . . nonjudicial tax foreclosure procedures are inefficient, lengthy, and commonly result in title to real property which is neither marketable nor insurable. . . . Consequently, the General Assembly further finds that the alternative to nonjudicial tax foreclosure procedures authorized by this article is an effective means of eliminating health and safety hazards by putting certain tax delinquent properties back on the tax rolls and into productive use.

(Emphasis supplied.) Indeed, as the County aptly notes, it does not appear that a

county is even obligated to enact an ordinance or resolution enabling judicial in rem

tax foreclosure sales. See OCGA § 48-4-76 (a) (authorizing municipalities to enact

an applicable ordinance or resolution “[i]n the event that the governing authority of

a county does not so act”).

In light of the legislature’s expressed intent, we simply will not construe the

nuisance abatement statute as requiring the exclusive use of a judicial in rem tax

foreclosure sale to enforce a nuisance abatement lien. Such a construction directly

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Haugen v. Henry County
594 S.E.2d 324 (Supreme Court of Georgia, 2004)
Graham v. McKesson Information Solutions, LLC
631 S.E.2d 424 (Court of Appeals of Georgia, 2006)
Morrison v. Claborn
669 S.E.2d 492 (Court of Appeals of Georgia, 2008)
Land USA, LLC v. Georgia Power Company
773 S.E.2d 236 (Supreme Court of Georgia, 2015)
Dlt List, LLC v. M7ven Supportive Housing & Development Group
779 S.E.2d 436 (Court of Appeals of Georgia, 2015)
DLT List, LLC v. M7VEN Supportive Housing & Development Group
800 S.E.2d 362 (Supreme Court of Georgia, 2017)
H & C Development, Inc. v. Bershader
546 S.E.2d 907 (Court of Appeals of Georgia, 2001)
Montgomery County v. Hamilton
788 S.E.2d 89 (Court of Appeals of Georgia, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
Derby Properties, LLC v. J. W. "Bill" Watson III, in His Official Capacity as the Tax Commissioner, Counsel Stack Legal Research, https://law.counselstack.com/opinion/derby-properties-llc-v-j-w-bill-watson-iii-in-his-official-capacity-gactapp-2018.