John Reno v. Dennis O. Hamilton, Cathy A. Hamilton, Stephen Wayne Bell II, Stephanie L. Bell, Stacie L. Bell, Sonia K. Bell-Brenizer (mem. dec.)

102 N.E.3d 353
CourtIndiana Court of Appeals
DecidedMay 24, 2018
Docket33A01-1711-PL-2669
StatusPublished

This text of 102 N.E.3d 353 (John Reno v. Dennis O. Hamilton, Cathy A. Hamilton, Stephen Wayne Bell II, Stephanie L. Bell, Stacie L. Bell, Sonia K. Bell-Brenizer (mem. dec.)) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Reno v. Dennis O. Hamilton, Cathy A. Hamilton, Stephen Wayne Bell II, Stephanie L. Bell, Stacie L. Bell, Sonia K. Bell-Brenizer (mem. dec.), 102 N.E.3d 353 (Ind. Ct. App. 2018).

Opinion

Kirsch, Judge.

[1] This case involves different parties purchasing the same parcel of real estate. John Reno ("Reno") filed a complaint to quiet title in the subject real property. Following a bench trial, the trial court determined that Reno was not entitled to the requested relief. Reno now appeals, raising two issues that we consolidate and restate as: Whether the trial court erred when it determined that Reno, who possessed a 2006 unrecorded deed, was not entitled to quiet title in the subject real property, which Dennis O. Hamilton and Cathy A. Hamilton ("the Hamiltons") purchased from third parties in 2012 for valuable consideration following at least two title searches that did not reflect Reno as being the owner of the property.

[2] We affirm.

Facts and Procedural History

[3] The property at issue consists of approximately 3.06 acres, described in three legal tracts, located on Trainor Street in New Castle, Indiana ("the Property"). 2 One tract lies adjacent to land owned and occupied by Reno's business, Reno's Auto Salvage, and contains the driveway used to access Reno's Auto Salvage; the other two tracts are across a street. The Hamiltons, along with Cathy Hamilton's mother, own real estate either adjacent to or in the immediate vicinity of the Property. Tr. Vol. II at 117, 129. As is relevant here, the Property was transferred several times, and in his complaint, Reno claimed to have a superior interest. The relevant history of the Property is as follows.

[4] In 2000, the Property was owned by Reno. On October 17, 2000, Reno conveyed it to his friend, Stephen W. Bell ("Bell"). Reno conveyed the Property to Bell as a favor, in order that Bell would have collateral necessary to obtain a loan from the bank. On September 21, 2005, Bell died without a will. He was survived by four children: Stephen Wayne Bell II, Stephanie L. Bell, Stacie L. Bell, and Sonia K. Bell-Brenizer (together, "the Bell Heirs"). The Bell Heirs did not open or administer an estate for their father.

[5] Eventually, Bell's loan fell into default and the lender, MainSource Bank ("MainSource"), initiated a foreclosure action on a mortgage that was secured by the Property. MainSource named the Bell Heirs as defendants in the foreclosure action, and on May 5, 2006, MainSource obtained an in rem default judgment in the amount of $29,753.28. 3 Thereafter, the Property was noticed for sale at a July 25, 2006 sheriff's sale. Michael McKown ("McKown"), a local real estate broker and long-time friend of Reno's, noticed that the Property was going to be sold at the upcoming sheriff's sale, and knowing that the Property adjoined Reno's salvage yard and that Reno previously had owned it, McKown contacted Reno to advise him that the Property was going up for auction. Reno advised McKown that he wanted to purchase it, so Reno attended the sheriff's sale with McKown on July 25, 2006, and with McKown's assistance with the bidding, Reno purchased the Property for $500. A Sheriff's Deed for the three tracts comprising the Property, dated July 25, 2006, was mailed to Reno. He received the Sheriff's Deed, but never recorded it.

[6] After he purchased the Property at the sheriff's sale, Reno began receiving the associated tax bills for the Property, addressed to "Stephen Bell in care of John Reno." Tr. Vol. II at 176. Reno did not timely pay the real estate taxes on the Property for the period of the sheriff's sale through and including October 2009.

[7] Cathy Hamilton ("Cathy"), a subsequent purchaser of the Property and a named defendant in Reno's complaint, was raised in the Trainor Street area, which was referred to by locals as the "Hollow" or "Blue River Valley," an area comprised of "small, humble homes." Id. at 123-25. After graduating from high school, Cathy moved away from the Hollow for several decades to attend college and work. In 2007, she moved back to the area with her husband, Dennis Hamilton ("Dennis"), and their adult daughter. Cathy's mother still lived in the Hollow. The Hamiltons bought a number of properties in the Hollow, tore down the dilapidated homes, cleaned up the area, and built two separate homes connected by a breezeway; this arrangement met the needs of their adult daughter, who Cathy testified had multiple disabilities and would never be able to live entirely on her own. Id. at 127-28. Cathy's mother's home was next to the Property.

[8] In October 2009, the Property was listed in a legal notice in the local newspaper, stating that the Property was going to be sold at an upcoming tax sale ("2009 Tax Sale"). Bell was listed in the legal notice as the owner of the Property. Appellees' App. Vol. 2 at 2. Dennis saw the publication for the 2009 Tax Sale, and because the Property was in the vicinity of the Hamiltons' home and next to Cathy's mother's residence, Dennis attended the 2009 Tax Sale and purchased the Property, receiving a tax sale certificate for his purchase.

[9] Prior to the date of the 2009 Tax Sale, McKown had seen the published legal notice stating that the Property was going to be up for sale, so he contacted Reno to let him know. Reno did not attend the 2009 Tax Sale, but McKown did, and he saw Dennis purchase the tax certificate for the Property. Evidence was presented that McKown approached Dennis at the sale and told him that someone else owned or had an interest in the Property. Following the 2009 Tax Sale, and because of McKown's comments, the Hamiltons retained an attorney, and the attorney obtained a title search for the Property. Tr. Vol. II at 158. The search revealed that Bell owned the Property and no one else had a legal interest in it.

[10] Under Indiana law, there is a one-year redemption period within which a property's delinquent taxes may be paid, 4 and, if this occurs, then title does not pass to the purchaser of the tax sale certificate and, instead, the real estate remains titled as it was at the time of the tax sale. In this case, a few days before the expiration of the one-year redemption period for the Property, Reno paid the amount necessary to redeem the Property from the 2009 Tax Sale, such that Dennis's earlier purchase and receipt of the tax certificate had no legal effect.

[11] In early 2012, the Hamiltons received a telephone call from one of the Bell Heirs, Stephanie, who conveyed that the Bell Heirs had heard that the Hamiltons wanted to purchase the Property. Dennis informed Stephanie that the Hamiltons were, in fact, interested in purchasing it as long as the Bell Heirs had interest to sell. For that purpose, the Hamiltons obtained a second property records search on the Property, which covered the period of time from October 17, 2000 to January 20, 2012. It indicated that the title to the Property was listed in the name of the "Heirs at Law of Stephen Wayne Bell, deceased." Appellees' App. Vol. 2 at 4-5.

[12] On February 3, 2012, the Hamiltons met the Bell Heirs at the Hamiltons' attorney's office to close on the Hamiltons' purchase of the Property. The Hamiltons paid $4,000, or $1,000 to each of the four Bell Heirs. At that time, the real estate taxes were delinquent, and the Hamiltons also paid the taxes.

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Bluebook (online)
102 N.E.3d 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-reno-v-dennis-o-hamilton-cathy-a-hamilton-stephen-wayne-bell-ii-indctapp-2018.