Gartner v. State Land Office Board

9 N.W.2d 677, 305 Mich. 465, 1943 Mich. LEXIS 396
CourtMichigan Supreme Court
DecidedMay 18, 1943
DocketDocket No. 39, Calendar No. 42,320.
StatusPublished
Cited by1 cases

This text of 9 N.W.2d 677 (Gartner v. State Land Office Board) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gartner v. State Land Office Board, 9 N.W.2d 677, 305 Mich. 465, 1943 Mich. LEXIS 396 (Mich. 1943).

Opinion

Sharpe, J.

This is a suit in chancery for a declaratory decree finding and determining that plaintiffs as successful bidders at a scavenger sale are entitled to a deed from the State land office board.

On May 3, 1938, the property involved in this suit was sold at tax sale to the State; and pursuant to the *467 applicable statute, tbe State acquired title to the property on November 3,1939. On March 18, 1941, the property was sold by the State land office board and plaintiffs were the successful bidders, paying the sum of $350 which was the amount of their bid. They were issued a certificate containing the provision that “if such highest bid is not met by an ‘owner’ having priority as defined in said act said highest bidder shall be entitled to receive a quitclaim deed * * * executed in behalf of the State of Michigan by the State land office board.” "Within 30 days after the sale to plaintiffs, Stephen Kiernicki offered to match the bid. Hearings were held by the arbitration committee of the board for the purpose of determining whether Stephen Kiernicki was entitled to match the bid made by plaintiffs at the scavenger sale held March 18, 1941. The board determined that Stephen Kiernicki was entitled to match the bid. Whereupon, plaintiffs filed a bill of complaint in the circuit court of Wayne county for a declaratory decree determining that plaintiffs are entitled to a deed of the premises from the State land office board.

Defendant Stephen Kiernicki filed a cross bill and asked that a declaratory decree be entered determining that he is the owner of the premises, individually and as agent and trustee of Anna Palczynski. At the. hearing before the arbitration committee of the State land office board and before the trial court, defendant Kiernicki claimed the right to meet the bid of plaintiffs because the property was sold by the Union Guardian Trust Company on land contract to H. J. York in 1916, and in 1924 York sold on subcontract to Jacob Palczynski and Anna *468 Palczynski, Ms wife. Jacob Palczynski died in 1931; at this time, the unpaid balance of the purchase price of $4,000 was the sum of $1,900. Since her husband’s death, Anna Palczynski has made no payments on the contract, nor has she paid any taxes on the property.

On February 7, 1941, Stephen Kiernicki entered into an agreement with Anna Palczynski whereby he received from her a quitclaim deed of the property and an assignment of her land contract.

The following “trust agreement” was entered into:

“It is hereby mutually agreed by and between Anna Palczynski party of the first part and Stephen Kiernicki, party of the second part and for a valuable consideration moving between said parties that whereas the party of the first part is the owner of the land and premises situated in the city of Detroit, county of Wayne and State of Michigan and more particularly described as follows: Lots numbered 114 and 115 of the Leland-Dodge Subdivision of fractional section 28, town 1 south, range 12 east, according to the plat thereof recorded in the office of the register of deeds for said county of Wayne and whereas said first party has this day executed a quitclaim deed and also has assigned to said second party a certain land contract for the purchase of said premises from one Harry J. York and in consideration thereof and whereas it is mutually agreed by and between said parties that said first party has and shall have a remaining interest in said land and premises by reason of an unpaid balance of $50 owing to said first party by said second party for the purchase of said premises and whereas it is agreed by and between said parties that said second party takes and receives said deed and assignment of land contract as trustee for said first party until said remaining sum of $50 is fully paid, and whereas said first party hereby authorizes and directs said second party to appear for and in behalf of said *469 first party at any auction sale or otherwise of said land and premises for delinquent and or unpaid taxes to be made and offered and effected by the State land office board under authority of Act No. 155, Pub. Acts 1937, as amended, and to bid at such sale in the name of said second party and or to match the bid of any other person in his own name or in the name of said first party, under said act, but in any event as agent and trustee for said first party until this agreement is fully performed by the payment of the balance of said purchase price aforesaid after which this agreement shall become fully executed and null and void.
“It is further agreed that this agreement shall be binding on the heirs, legal representatives and assigns of the respective parties hereto.
“In witness whereof the parties hereto have hereunto set their hands and seal this 7th day of February, A. D. 1941.
“Anna Palczynski (Seal) ”
“Witnesses “Stephen Kiernicki (Seal)”

, The trial court filed an opinion and found as a fact that on the date of the tax sale, May, 1938, Anna Palczynski had an interest in the real estate as sole surviving vendee on a land contract; that on April 10, 1941, Anna Palczynski was an owner of the premises having priority as defined in Act No. 155, Pub. Acts 1937, as amended; that while on April 10,1941, Stephen Kiernicki made the application for purchase of the lands in his own name, he was acting as agent of Anna Palczynski pursuant to the above trust agreement; and that Stephen Kiernicki had the right to act as agent for Anna Palczynski. A decree was entered directing the State land office board to execute and deliver to Stephen Kiernicki as agent and trustee of Anna Palczynski its usual form of land contract covering said premises.

*470 Plaintiffs appeal and urge that at the time of the scavenger sale, Anna Palczynski was not a “former owner;” and that Stephen Kiernicki acquired no rights, by reason of the agreement entered into, which he could exercise for himself or for Anna Palczynski.

Act No. 155, § 7, Pub. Acts 1937, as amended by Act No. 244, Pub. Acts 1939 (Comp. Laws Supp. 1940, § 3723-7, Stat. Ann. 1940 Cum. Supp. § 7.957), provides that:

“Any person who, at the time of the tax sale, had any interest in any parcel of land so sold, shall have the right for a period of 30 days after such public sale as in this section provided, to meet the highest bid, by paying the amount thereof to the county treasurer. ’ ’

In numerous cases we have discussed the provisions of the law pertaining to the rights of former owners of the land.

In James A. Welch Co., Inc., v. State Land Office Board, 295 Mich. 85, 94, we said :

“The right of plaintiff to meet the highest bid is not a condition upon which the State acquired title absolute to the lands in question. This privilege could not under any circumstances accrue to plaintiff or become a vested right in it until a sale has been made by the State to the highest bidder.

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Related

Caplan v. Jerome
22 N.W.2d 270 (Michigan Supreme Court, 1946)

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Bluebook (online)
9 N.W.2d 677, 305 Mich. 465, 1943 Mich. LEXIS 396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gartner-v-state-land-office-board-mich-1943.