Eclipse Property Development LLC v. Fareed Ammari

CourtMissouri Court of Appeals
DecidedSeptember 21, 2021
DocketED109298
StatusPublished

This text of Eclipse Property Development LLC v. Fareed Ammari (Eclipse Property Development LLC v. Fareed Ammari) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eclipse Property Development LLC v. Fareed Ammari, (Mo. Ct. App. 2021).

Opinion

In the Missouri Court of Appeals Eastern District DIVISION ONE

ECLIPSE PROPERTY DEVELOPMENT LLC, ) No. ED109298 ) Appellant, ) Appeal from the Circuit Court ) of Jefferson County vs. ) ) Honorable Troy A. Cardona FAREED AMMARI, ET AL., ) ) Respondents. ) FILED: September 21, 2021

Introduction

The issues presented on appeal address the validity and priority of unpaid sewer fees

charged against property owners by a statutorily-created public sewer district. Eclipse Property

Development, LLC (“Eclipse”) appeals from the trial court’s grant of summary judgment to the

Northeast Public Sewer District (the “District”) ordering satisfaction of the District’s lien for

unpaid sewer fees on property purchased by Eclipse at a delinquent tax sale (the “Property”).

Eclipse raises two points on appeal. Eclipse first challenges the trial court’s judgment that it pay

the sewer lien by characterizing the base user sewer fee as a tax subject to the voting approval

requirements of the Hancock Amendment in the Missouri Constitution, Article X, Section 22(a).

Eclipse next argues that the trial court erred because under Section 140.4201 the District’s sewer

lien is inferior to the general real estate tax lien and thus did not survive foreclosure of the

1 All Section and Chapter references are to RSMo (2016), unless otherwise indicated. general lien release when Eclipse obtained the collector’s deed from Jefferson County (the

“County”). Because the base user sewer fee is charged only to properties connected to the

District’s sewer service line, the District’s base sewer fee is not an unconstitutional tax, and is

properly charged to the Property. Because Section 249.255 gives the District’s sewer liens

special priority and enforcement status equal to state and county tax liens, the District’s

unrecorded lien was not extinguished by the County tax sale. Accordingly, we affirm the trial

court’s judgment.

Factual and Procedural History

Our review of the summary-judgment record shows that Eclipse purchased the Property

at a delinquent tax sale and obtained the collector’s deed from the County in March 2018. In

April 2018, Eclipse filed a petition seeking declaratory judgment to confirm the tax sale and to

quiet title to the Property against various parties who either claimed to have an interest in the

Property or who may possibly assert an interest in the Property. Eclipse also included a claim for

ejectment in the petition. The District was not a named party to the petition.

The District is a statutorily-created public sewer district located in the County organized

under Chapter 204. The District sent Eclipse a bill in January 2019 for unpaid sewer fees on the

Property at a base user fee of $31.73 per month. The unpaid fees dated back to April 16, 2015,

for a total of $2,343.68 in unpaid fees. The District explained that the base user fee is calculated

to support and maintain the operation, administration, and infrastructure of the individual sewer

lines and overall sewer system. The District charges the base fee only to properties that access

the sewer service line. Not all properties within the District are connected to the sewer service

line. A property owner may disconnect a property from the sewer service line. To do so, the

District performs an inspection, which it provides free of charge, following which the District

caps off the infrastructure connecting the property to the sewer line. 2 The Public Water Supply District No. 2 of the County terminated water service to the

Property in March 2012. The Property has not used metered water service since that time.

Correspondingly, Eclipse suggests, and there is no evidence to the contrary, that the Property has

since not used sewer service. The Property was connected to the sewer service line in March

2012 and remained connected to the sewer service line throughout the period claimed for unpaid

sewer fees.

After the District sent its bill for unpaid sewer fees, Eclipse amended its petition to add

the District as a party-defendant. The District filed a lien against the Property for the unpaid

sewer fees in the amount of $3,528.45. With regard to its declaratory-judgment claim, Eclipse

noted that the District only recorded, noticed, and asserted any lien on the Property on March 15,

2019, eleven months after Eclipse filed the initial petition. The trial court granted Eclipse a

default judgment and interlocutory order of default against all defendants except the District.

Eclipse then moved for partial summary judgment against the District on its claims for

declaratory judgment and quiet title. The District cross-moved for summary judgment.2 The

trial court entered an order and judgment granting the District’s motion for summary judgment

and denying Eclipse’s motion for partial summary judgment. The trial court ordered Eclipse to

pay the District’s lien for unpaid sewer fees for the Property in the amount of $3,528.45. Eclipse

now appeals.

Jurisdiction

Before addressing the merits of this appeal, we first must determine whether we have

jurisdiction. First Nat’l Bank of Dieterich v. Pointe Royale Prop. Owners’ Ass’n, Inc., 515

S.W.3d 219, 221 (Mo. banc 2017) (citing Gibson v. Brewer, 952 S.W.2d 239, 244 (Mo. banc

2 After amending its petition, Eclipse again moved for partial summary judgment, and the District again cross- moved for summary judgment.

3 1997)). An appeal only lies from a final judgment resolving all issues in the case. See id.

(internal citation omitted). However, Rule 74.01(b)3 authorizes a trial court to enter judgment on

fewer than all claims and certify that judgment as a “final judgment” for purposes of appeal

where there is no just reason for delay. Id. at 221–22. We apply the following four-factor test to

determine whether Rule 74.01(b) certification for appeal is proper:

(1) whether the action remains pending in the trial court as to all parties; (2) whether similar relief can be awarded in each separate count; (3) whether determination of the claims pending in the trial court would moot the claim being appealed; and (4) whether the factual underpinnings of all the claims are intertwined.

Mo. Land Dev. I, LLC v. Raleigh Dev., LLC, 407 S.W.3d 676, 685 (Mo. App. E.D. 2013)

(internal citation omitted).

“Ordinarily, the denial of a motion for summary judgment will not be reviewed on

appeal.” Behrick v. Konert Farms Homeowners’ Ass’n, 601 S.W.3d 567, 573 (Mo. App. E.D.

2020) (internal quotation omitted). “Where, however, the material facts are undisputed and the

merits of the denied cross-motion for summary judgment are inextricably intertwined with the

issues raised in the granted motion for summary judgment, the merits of the denial of the cross-

motion may be reviewed on appeal.” Id. (internal quotation omitted).

In the matter before us, not all of the claims pending before the trial court were resolved

with the trial court’s judgment. Although the judgment disposed of all claims between Eclipse

and the District related to tax sale confirmation, quiet title, and declaratory judgment, there

remain unadjudicated claims for breach of deed and warranties of title against the County and its

tax trustee. Those claims seek contribution from the County as a third-party defendant and do

not directly affect the issues on appeal and cannot moot the appeal. See Bank of Birch Tree v.

Am. Mod. Home Ins.

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