Meltzer v. State Land Office Board

3 N.W.2d 875, 301 Mich. 541, 1942 Mich. LEXIS 567
CourtMichigan Supreme Court
DecidedMay 18, 1942
DocketDocket No. 67, Calendar No. 41,929.
StatusPublished
Cited by17 cases

This text of 3 N.W.2d 875 (Meltzer 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
Meltzer v. State Land Office Board, 3 N.W.2d 875, 301 Mich. 541, 1942 Mich. LEXIS 567 (Mich. 1942).

Opinion

Boyles, J.

In this case, plaintiffs filed a bill in chancery under Act No. 36, Pub. Acts 1929 (3 Comp. Laws 1929, §13903 [Stat. Ann. §27.501]), for a *544 declaration of their rights and injunctive relief regarding certain real estate in Oakland county. We consider the case as one seeking injunctive relief. Plaintiffs ask to he declared the owners of a one-sixth interest in said land, and their bill of complaint prays that the State land office board be permanently enjoined from conveying said land to P. Homer Newton and Charles H. Newton, defendants. The court below, on motion, entered a decree dismissing the bill of complaint, from which plaintiffs appeal.

Prior to November 29, 1939, title to the land in question was in F. Homer Newton, Charles H. Newton (defendants herein), Osmun Wigg, William Fox and Mildred, his wife. The taxes thereon being delinquent for the years 1930 to 1935, inclusive, the entire parcel was sold by the county treasurér at the annual tax sale in May, 1938, and bid in to the State of Michigan. On November 29, 1939, the equity of redemption not having been exercised by any of the owners, the auditor general deeded the land to the State. Thereupon, the State of Michigan became the owner of the title in fee and r, new chain of title was started. Krench v. State of Michigan, 277 Mich. 168; Rathbum v. State of Michigan, 284 Mich. 521.

On December 5, 1939, William Fox and Mildred, his wife, attempted to convey to plaintiffs herein by quitclaim deed a one-sixth interest in said land. Obviously, this deed conveyed nothing to plaintiffs, because at that time Fox and wife had no interest to convey. At the same time, Fox and wife executed and delivered to plaintiffs an instrument purporting to assign to plaintiffs any and all rights they might have in said land, authorizing plaintiffs to redeem in their name, to bid in the land at the scavenger sale either in plaintiffs’ own name or in the name of Fox and wife, or to match the bid of any other party at the scavenger sale in the name of William Fox and Mildred Fox, his wife.

*545 The land in question was sold by the State at scavenger sale April 25, 1941, and plaintiffs bid in the land as owners in their own name and in the name of Osmun Wigg and William Fox, by their agent, Edward Sugar. Nothing is claimed by plaintiffs through the interest of Osmun Wigg. Within 30 days thereafter, defendants F. Homer Newton and Charles H. Newton exercised the right to match the bid, claiming this right as persons having an interest in the land at the time of the tax sale (May, 1938). Act No. 155, Pub. Acts 1937, §§5, 7, as amended by Act No. 244, Pub. Acts 1939 (Comp. Laws Supp. 1940, §§ 3723-5, 3723-7, Stat. Ann. 1940 Cum. Supp. §§ 7.955, 7.957). The inapplicability of the 1941 amendments to this act as affecting the instant case will be pointed out later.

Subsequently, plaintiffs demanded a conveyance to them from the State land office board, asserting they had such a right as grantees or assignees of William Fox, former owner. The board refused to acknowledge this right and advised plaintiffs it would give defendants Newton a land contract as owners of an interest in the land at the time of the tax sale (May, 1938), having matched the bid. This conclusion reached by the board was correct. Plaintiffs had no interest in the land at the time of the tax sale, and their attempt to obtain such an interest on December 5, 1939, after the State’s title became absolute, did not accomplish that result.

Plaintiffs claim that the deed and assignment to them on December 5, 1939, from William Fox and wife, gave them an enforceable right to match the highest bid; in other words, that Fox and wife, as former owners of an interest, could assign to plaintiffs the right, for 30 days after the scavenger sale, to match the highest bid. This claimed assignment was obtained by plaintiffs after the title of the State became absolute and plaintiffs obtained nothing by *546 it. The right to meet the highest hid is limited to parties having an interest in the land at the time of the tax sale. This right is not assignable. Redford Union Schools, District No. 1, v. State Land Office Board, 297 Mich. 535.

While the 1941 amendment to the act purports to extend the right to match the bid to the assignee or grantee of such owner (Act No. 363, § 5a, Pub. Acts 1941 [Comp. Laws Supp. 1942, § 3723-5a, Stat. Ann. 1941 Cum. Supp. § 7.955 (1)]), we have held that this amendment (effective June 19, 1941) does not apply to property sold to a purchaser who became entitled to a deed prior to its effective date. National Bank of Detroit v. State Land Office Board, 300 Mich. 240.

Prior to the tax sale in May, 1938, and up to the time when the title of the State became absolute on November 29, 1939, defendants Newton were co-owners of the property in question with Pox and wife from whom plaintiffs claim their rights, if any, were obtained. Plaintiffs assert that the Newtons could not cut off the rights of their co-owners by matching’ plaintiffs’ bid after the scavenger sale, basing this claim on our holding in Jacobsen v. Nieboer, 299 Mich. 116. In that case, we held that a mortgagor could not cut off the rights of his mortgagee by subsequently purchasing the property at scavenger sale, after having defaulted in his covenant to pay taxes on the property. The decision is based on the principle that a mortgagor cannot take advantage of his own default after covenanting to pay taxes, .and defeat the mortgage lien by subsequently obtaining title under the scavenger sale. The distinction between the Jacobsen Case and the ease at bar is apparent. In the Jacobsen Case, the mortgagor who subsequently tried to cut off the mortgage lien by purchase from the State owed a *547 duty to the mortgagee to pay the taxes. In the case now before us, the Newtons owed no duty to Fox and wife to pay the taxes. They did not covenant with Fox and wife as co-owners to bear the entire tax burden. Fox and wife were just as liable for taxes as were the Newtons and no trust or contractual relationship existed between them whereby one must pay the taxes of the other. When the Newtons purchased from the State after the State’s title had become absolute, the cotenancy between the Newtons and their former co-owners had already been terminated.

The distinction between the decisions relied on by plaintiffs in support of their claim and the case at bar is pointed out in those decisions. In Page v. Webster, 8 Mich. 263 (77 Am. Dec. 446), land was sold for taxes and the land was bid in by one of the cotenants who obtained a deed from the auditor general. This court said:

‘ ‘ Crane has no adverse title or claim. He occupies neither the position of one purchasing in an outstanding adverse title, nor of one purchasixxg from a bona fide purchaser at tax sale, whose title had become absolute, whereby the cotenancy had been dissolved. He stands simply as one who has paid upon compulsion taxes assessed against the property held by him in common with others.”

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Bluebook (online)
3 N.W.2d 875, 301 Mich. 541, 1942 Mich. LEXIS 567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meltzer-v-state-land-office-board-mich-1942.