MARATHON ASSET MANAGEMENT, LLC v. Otto

977 So. 2d 1241, 2008 Miss. App. LEXIS 178, 2008 WL 766350
CourtCourt of Appeals of Mississippi
DecidedMarch 25, 2008
Docket2006-CA-01386-COA
StatusPublished
Cited by4 cases

This text of 977 So. 2d 1241 (MARATHON ASSET MANAGEMENT, LLC v. Otto) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MARATHON ASSET MANAGEMENT, LLC v. Otto, 977 So. 2d 1241, 2008 Miss. App. LEXIS 178, 2008 WL 766350 (Mich. Ct. App. 2008).

Opinion

977 So.2d 1241 (2008)

MARATHON ASSET MANAGEMENT, LLC, Appellant
v.
Alicia OTTO and Jonathan Otto, Appellees.

No. 2006-CA-01386-COA.

Court of Appeals of Mississippi.

March 25, 2008.

*1242 Hunter Fariss Crisler, Jackson, attorney for appellant.

Paul E. Rogers, Jackson, attorney for appellees.

Before KING, C.J., BARNES and ISHEE, JJ.

ISHEE, J., for the Court.

¶ 1. This appeal resulted from a case in the Hinds County Chancery Court wherein Marathon Asset Management, LLC (Marathon) sought to set aside an order entered in another action in which the chancellor granted Alicia and Jonathan Otto's request to extend the tax redemption period. The chancellor held that the court had the authority to extend the redemption period for an additional sixty days, and therefore, Marathon's request to conform its tax title was denied. Marathon now appeals, asserting that the chancellor committed error in: 1) finding that the statutory redemption period for the tax sale could be extended after the maturity date expired and 2) giving credence to and recognizing the preceding order granting the motion to amend judgment and denying the motion to reconsider when Marathon's predecessor in interest was not a party to the civil action. Finding no error, we affirm.

*1243 FACTS AND PROCEDURAL HISTORY

¶ 2. On August 28, 2000, Ironwood Acceptance Corporation (Ironwood) purchased a parcel of land located in Hinds County. Ironwood purchased the land at a tax sale by paying a sum in the amount of the 1999 ad valorem taxes owed. The two-year tax redemption period for the subject property began to run on this day and was set to expire on August 28, 2002. Subsequently, Ironwood obtained a deed for the subject property that was recorded in the office of the Chancery Clerk of Hinds County. Ironwood thereafter transferred title to Marathon by way of a quitclaim deed that was also recorded with the Hinds County Chancery Clerk.

¶ 3. On February 11, 2002, a special commissioner was appointed by the chancery court for the purpose of selling the subject property through a foreclosure sale. The sale was intended to foreclose a deed of trust on the subject property held by AmSouth Bank. On June 4, 2002, the commissioner conducted the foreclosure sale on the subject property whereby Alisha Otto and Jonathan Otto were the highest bidders. However, the Ottos were delayed in obtaining title to the property by separate court proceedings involving the subject property. Therefore, the deed to the subject property was not conveyed to the Ottos until September 9, 2002. Subsequently, the deed was recorded in the land records of the office of the Hinds County Chancery Clerk. The conveyance occurred twelve days after the tax redemption period for the previous tax sale had expired.

¶ 4. On November 1, 2002, AmSouth Bank filed a motion to amend the final judgment on behalf of the Ottos with the chancery court, asking the court to extend the tax redemption period in order to allow the Ottos to redeem the subject property. The chancellor, finding that the Ottos were delayed' in receiving the subject property due to the dilatory actions of the property's former owners, granted the motion to amend on November 22, 2002. In doing so, the chancellor approved a provision extending the tax redemption period. By letter dated December 3, 2002, the Hinds County Chancery Clerk notified the Ottos that they were granted an additional sixty days in order to redeem the subject property from the tax sale. On January 3, 2003, within the court-ordered redemption period, the Ottos redeemed the subject property by paying the 1999, 2000, and 2001 taxes plus interest and fees totaling $8,292.65. Subsequent to purchasing the property, the Ottos also expended the sum of approximately $60,000 in order to improve and renovate the property.

¶ 5. Marathon filed its complaint with the Chancery Court of Hinds County on February 10, 2004, seeking to have the court confirm the title to the subject property in Marathon. The chancellor found the Ottps to be the fee simple owners of the land. Marathon now appeals that decision.

STANDARD OF REVIEW

¶ 6. "A chancellor's findings of fact will not be disturbed unless manifestly wrong or clearly erroneous. This Court will not disturb the findings of a chancellor when supported by substantial evidence unless the chancellor abused his or her discretion, was manifestly wrong, clearly erroneous, or an erroneous legal standard was applied." Sanderson v. Sanderson, 824 So.2d 623, 625-26(¶ 8) (Miss.2002) (citations omitted).

¶ 7. "We conduct a de novo standard of review for determinations of legal questions." Russell v. Performance Toyota, Inc., 826 So.2d 719, 721(¶ 5) (Miss.2002).

*1244 ANALYSIS

I. Whether the chancellor erred in finding that the chancery court had the authority to extend the redemption period.

¶ 8. Marathon claims that the chancellor acted outside of his statutory authority by extending the tax redemption period by sixty days to allow the Ottos to redeem the subject property. Marathon is correct in its assertion that the statutory redemption period is generally two-years from the date of the tax sale. The method by which a tax sale can be redeemed is set forth in section 27-45-3 of the Mississippi Code Annotated, which provides in part:

The owner, or any persons for him with his consent, or any person interested in the land sold for taxes, may redeem the same, or any part of it, where it is separable by legal subdivisions of not less than forty (40) acres, or undivided interest in it, at anytime within two (2) years after the day of sale, by paying the chancery clerk, regardless of the purchaser's bid at the tax sale, the amount of all taxes for which the land was sold, with all costs incident to the sale. . . .

Miss.Code Ann. § 27-45-3 (Supp.2006). However, Marathon's argument fails in assuming that the two-year redemption period is absolute. "The legislature may impose reasonable conditions on the right to redeem under the constitution, but the right cannot be defeated by the legislature neglecting or failing to provide a scheme by which it may be done. The courts will afford a remedy in case the legislature furnishes none, and equity has jurisdiction of a suit to redeem independent of the legislature." Levy v. McCay, 445 So.2d 546, 547 (Miss.1984) (quoting Union Sav. Bank & Trust Co. v. Jackson, 122 Miss. 557, 573-74, 84 So. 388, 391 (1920)). Our supreme court has chosen to refrain from applying a strict interpretation to the redemption statute. See James v. Tax Inv. Co., 206 Miss. 605, 618, 40 So.2d 539, 543 (1949); McLain v. Meletio, 166 Miss. 1, 5, 147 So. 878, 879 (1933); Darrington v. Rose, 128 Miss. 16, 25, 90 So. 632, 634 (1922). To the contrary, the supreme court has held that statutes allowing the right of redemption from tax sales, whether by the owner of the fee, or any person who has an interest in the land, "are to be liberally and benignly construed in favor of the right to redeem." Darrington, 128 Miss, at 25, 90 So. at 634.

¶ 9. It should be noted that the cases cited above held that redemption was effected where the owner or interested party made an attempt to redeem the land, but redemption was not accomplished dye to negligence on the part of the clerk or custodian of records.

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977 So. 2d 1241, 2008 Miss. App. LEXIS 178, 2008 WL 766350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marathon-asset-management-llc-v-otto-missctapp-2008.