LA CHONA, LLC v. ABERRA

CourtSupreme Court of Georgia
DecidedMarch 6, 2017
DocketS16A1527
Status200

This text of LA CHONA, LLC v. ABERRA (LA CHONA, LLC v. ABERRA) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LA CHONA, LLC v. ABERRA, (Ga. 2017).

Opinion

300 Ga. 670 FINAL COPY

S16A1527. LA CHONA, LLC v. ABERRA et al.

HINES, Chief Justice.

Appellant La Chona, LLC, (“La Chona”) brought this quiet title action in

the Superior Court of DeKalb County, asserting that it was the owner of

property located in the City of Decatur, because it had purchased the property

at a tax sale and had barred the right of other interested persons, including

appellee Haddis Aberra (“Aberra”),1 to redeem the property pursuant to barment

notices that it had sent those parties under OCGA § 48-4-45. The trial court

ruled in favor of Aberra, concluding that, when La Chona sent the barment

notices, it did not hold a record interest in the property, was therefore not

authorized by law to send the notices, and, accordingly, had not barred Aberra’s

right to redeem the property. The trial court also ruled that, even if La Chona

had been authorized to send the barment notices, La Chona had waived the

1 Haddis Aberra died while the appeal was pending, and the executors of his estate, Maare Aberra and Shefena Gezahagn, were substituted as appellees in June 2016. See Rule 28 of the Supreme Court of Georgia. requirement of tender as to Aberra. For the reasons that follow, we affirm the

trial court’s ruling that La Chona did not have the right to send the barment

notice to Aberra, and because of that ruling, we need not decide the tender issue.

1. Background. Our evaluation of this case requires a detailed review of

what the record shows regarding the tax sale, the events relating to the property

after that sale, and a review of the law that governs those events.

In 2007, the property was owned by Josephine Hose in fee simple. She

died later that year, leaving the property to her two sons, Willie and Wesley

Hose, in undivided equal shares. Willie was appointed executor of his mother’s

estate, but he died in 2009 without executing a deed of assent to convey title to

himself and Wesley. In 2010, Aberra bought the interests in the property that

Wesley Hose and two of Willie Hose’s heirs held by virtue of the bequests from

Josephine Hose, so that, in total, Aberra gained a seven-ninths interest in the

property. Aberra petitioned the probate court to appoint an administrator to

execute deeds of assent conveying the property from the estate of Josephine

Hose to Wesley Hose and the heirs of Willie Hose. As of August 2010, that had

not occurred.

In August 2010, with the estate of Josephine Hose still holding title to the

2 property, the City of Decatur sold the property for the nonpayment of 2009

property taxes. La Chona was the highest bidder, purchasing the property for

$40,000. The tax deed was filed on September 8, 2010, and lists the defendant

in fi. fa. as the estate of Josephine Hose. La Chona, as the tax sale purchaser,

did not obtain absolute title to the property, but rather obtained a defeasible fee

interest subject to the statutory rights of other interested persons to redeem the

property. See Land USA, LLC v. Ga. Power Co., 297 Ga. 237, 239 (773 SE2d

236) (2015); OCGA § 48-4-40 (providing that “the defendant in fi. fa. or any

person having any right, title, or interest in or lien upon such property may

redeem” the property); OCGA § 48-4-41 (providing that a “creditor of the

defendant in fi. fa. who has no lien” may redeem the property).

At some point before the tax deed was recorded, Forum IRA, LLC,

(“Forum”), paid La Chona $48,000 to redeem the property. See OCGA § 48-4-

42 (providing that the amount that must be paid to redeem property includes,

among other things, “the amount paid for the property at the tax sale” and the

amount of “[a]ny taxes paid on the property by the purchaser after the sale”).

On the same day that the tax deed was recorded, La Chona executed a quitclaim

deed of redemption. The redemption deed says that Forum was a creditor of

3 Josephine Hose, “the defendant in fi. fa.,” and it conveyed the property to

Josephine.2 Forum obtained a lien on the property as a redeeming creditor.

“[T]he amount paid by the redeeming creditor becomes a first lien on the

property. The redeeming creditor then has first priority to repayment — a

‘super-lien’ for the redemption price — and may proceed to foreclose against

the property based upon that lien.” National Tax Funding, L.P. v. Harpagon

Co., 277 Ga. 41, 42-43 (586 SE2d 235) (2003) (footnote omitted). See OCGA

§ 48-4-43 (“the amount expended by the creditor [to redeem the property] . . .

shall constitute a first lien on the property and, if the quitclaim deed provided

for in Code Section 48-4-44 is recorded as required by law, shall be repaid prior

to any other claims upon the property”).

Based on its “super-lien,” Forum filed an action on December 3, 2010,

against Aberra and others who might have had an interest in the property. It

sought a judgment in the amount of its lien plus interest and sought to foreclose

on the property to satisfy the lien.

Over three years later, on January 16, 2014, while the Forum lawsuit was

2 The quitclaim deed should have been in favor of the estate of Josephine Hose, as required by OCGA § 48-4-43, which says that the effect of a redemption “shall be to put the title conveyed by the tax sale back into the defendant in fi. fa.”

4 still pending, La Chona served notices of foreclosure of the right to redeem, in

large part, on the same individuals and entities, including Aberra, that Forum

named as defendants in its 2010 action. La Chona based its right to bar

redemption rights on the ground that it was the purchaser at the tax sale in

August 2010 and held the tax deed. Under OCGA § 48-4-45 (a), “[a]fter 12

months from the date of a tax sale, the purchaser at the sale or his heirs,

successors, or assigns may . . . forever bar the right to redeem the property from

the sale by causing a notice or notices of the foreclosure” to be served upon

certain specified persons. La Chona’s barment notices said nothing about the

redemption by Forum, its successor under the deed records, and said that the

right to redeem the property would be barred on the latter of March 3, 2014, or

thirty days after the receipt of the notice.

Then, on January 17, 2014, an affidavit of title was executed by La Chona

and Forum. It stated that “the owner of the Property at the time of the tax sale

was the Estate of Josephine Hose,” and, contrary to the redemption deed, which

said that Forum was a creditor of Josephine Hose, the affidavit of title said that

Forum paid the redemption price because it thought that it was a creditor of an

heir (unnamed in the affidavit) of the estate of Josephine Hose. The affidavit

5 also said that the heir did not have an interest in the property; that Forum

therefore had no right to redeem the property; that Forum and La Chona had

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