Rebuild America, Inc. v. Mark A. Colomb and My Brother's Keeper

Court of Appeals of Mississippi·Decided August 9, 2022·No. 2021-CA-00213-COA·Published

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI NO. 2021-CA-00213-COA

REBUILD AMERICA, INC. APPELLANT v.

MARK A. COLOMB AND MY BROTHER’S APPELLEES KEEPER

DATE OF JUDGMENT: 12/31/2020 TRIAL JUDGE: HON. ISADORE W. PATRICK JR. COURT FROM WHICH APPEALED: HINDS COUNTY CIRCUIT COURT, FIRST JUDICIAL DISTRICT

ATTORNEY FOR APPELLANT: LEWIE G. “SKIP” NEGROTTO IV ATTORNEYS FOR APPELLEE EDWARD BLACKMON COLOMB: BRADFORD JEROME BLACKMON NATURE OF THE CASE: CIVIL - REAL PROPERTY DISPOSITION: REVERSED AND REMANDED - 08/09/2022 MOTION FOR REHEARING FILED: MANDATE ISSUED:

EN BANC.

GREENLEE, J., FOR THE COURT:

¶1. This appeal arises from the Hinds County Circuit Court’s judgment affirming the county court’s dismissal of Rebuild America Inc.’s (“Rebuild”) complaint for unlawful entry and detainer and the county court’s denial of Rebuild’s motion for findings of fact and conclusions of law. We find that the county court erred under Rule 52 of the Mississippi Rules of Civil Procedure by not providing findings of fact and conclusions of law after being requested to do so by Rebuild. We therefore reverse the circuit court’s judgment affirming the county court’s orders and remand this case to the circuit court with instructions for it to effectively remand the case to the county court to conduct a hearing on the record and

provide specific findings of fact and conclusions of law.

FACTS AND PROCEDURAL HISTORY1

¶2. On August 29, 2005, Wachovia Bank, as custodian for Sass Muni V. Dir. (“Wachovia”), purchased property located at 500 E. Woodrow Wilson, Lot M, Jackson, Mississippi, 39216 (“property”) for $93.05 at a Hinds County tax sale. Wachovia received a tax deed from the clerk of the First Judicial District of the Hinds County Chancery Court on September 10, 2007; however, the tax deed was not recorded until October 1, 2007. On October 31, 2007, U.S. Bank National, as successor in interest to Wachovia, transferred its interest in the property to Rebuild by a quitclaim deed and assignment. On November 7, 2007, Rebuild received and recorded the quitclaim deed with the clerk of the Hinds County Chancery Court.

¶3. On September 26, 2007, before Wachovia’s tax deed was recorded, Mark A. Colomb purchased the same property at an IRS lien sale. The property previously had been owned by Marcus K. Jackson, M.D., who had failed to pay his federal taxes. The IRS recorded eight tax liens on the property between 2001 and 2004 and enforced those liens to collect the unpaid taxes by selling it to Colomb for $85,000. After the requisite period for Jackson’s redemption had expired, on May 14, 2008, Colomb received a quitclaim deed to the property, which he recorded in the Hinds County Chancery Court Clerk’s office on August 21, 2008. The Hinds County land records show that Colomb paid the annual property taxes from 2009 forward. At the time the complaint was filed in this case, a business named My Brother’s

1 The facts here are derived from the parties’ briefs and what little can be found in the record on appeal.

Keeper was the tenant occupying the property.

¶4. On May 17, 2016, Rebuild sent a letter to Colomb demanding possession of the property. After Colomb failed to tender possession, on May 1, 2017, Rebuild filed a complaint for unlawful entry and detainer against Colomb and “the current tenant” in the Hinds County County Court. In its complaint, Rebuild alleged that it owned the property and that Colomb refused to tender possession of the premises, thereby unlawfully withholding possession of the property.

¶5. While litigation was pending, Colomb died, and the county court ordered that his Estate be served.2 Even though it had not yet been properly served, on November 22, 2017, the Estate filed a “Brief in Opposition” to Rebuild’s complaint for unlawful entry and detainer.3 In its brief, the Estate contended that Rebuild did not have standing to file suit because Rebuild failed to file its complaint within three years, as required by Mississippi Code Annotated section 11-25-103 (Rev. 2019).4 The Estate argued that Rebuild had only

2 We cannot determine from the appellate record whether an estate was opened, or whether an administrator was ever appointed.

3 My Brother’s Keeper joined in Colomb’s Estate’s pleadings. However, My Brother’s Keeper has not entered an appearance in the appeal now before this Court.

4 This section provides:

The purchaser of land at a sale for taxes, or his vendee, after two years from the date of the sale for taxes, and within three years from such date, may bring the action of unlawful detainer, for the recovery or possession of the land; and a judgment in his favor in the action shall be a bar to any action in any court brought after one year from the date of such judgment, to controvert the tax title to the land, saving the rights of infants and persons of unsound mind to redeem the same.

three years to seek possession and that its 2017 lawsuit was untimely. The Estate also contended that Rebuild did not have valid title to the property and that the lawsuit was not about possession but about title. The Estate informed the court that Rebuild had previously filed a similar suit in the Hinds County Chancery Court in 2007 (Cause No. G-2007-2198) against the previous owners, including Marcus Jackson.5 In the chancery court proceedings, Rebuild sought possession of the property and claimed that the IRS tax sale was void. But after the chancery court denied Rebuild’s motion for summary judgment in January 2010 because there was a genuine issue of material fact as to whom had valid title, Rebuild abandoned that lawsuit and it was dismissed without prejudice in 2011.

¶6. On November 23, 2017, and November 30, 2017, Rebuild filed memorandum briefs with the county court in support of its complaint. Rebuild argued that the Estate had waived any defense of lack of personal jurisdiction and that the chancery clerk’s tax sale conveyance granted the right of immediate possession regardless of adverse claims to title under Mississippi Code Annotated section 27-45-23 (Rev. 2017).6 Further, Rebuild argued that the

Miss. Code Ann. § 11-25-103.

5 We cannot determine from the record whether Rebuild filed this prior suit to confirm title or for unlawful entry and detainer.

6 This section provides:

When the period of redemption has expired, the chancery clerk shall, on demand, execute deeds of conveyance to individuals purchasing lands at tax sales. Which conveyances shall be essentially in the following form to wit:

“State of Mississippi, County of _______________ Be it known, that _______________, tax collector of said county of ___________, did, on the _____day of _______________, A.D.

IRS did not have any interest in the property at the time of its deed to Colomb because it only could convey what it owned, which was merely a “Certificate of Sale of Seized Property” issued on October 15, 2007. Also, Wachovia’s tax deed of October 1, 2007, pre-dated that certificate. Thus, Rebuild argued that the IRS had no interest in the property, which was now owned by Wachovia. Rebuild further argued that there was no three-year statute of limitations on the filing of an unlawful entry and detainer action in section 11-25-103, as the Estate suggested. Rebuild pointed to the use of the language “may” in the statute and argued that it merely gave Rebuild the option of filing within that time if it wanted to ensure that no challenge to its tax title could be made thereafter. Rebuild argued that it had one year from

___________, according to law, sell the following land, situated in said county and assessed to _____________ to wit: ____________ (here describe the land) __________________ for the taxes assessed thereon (or when sold for other taxes it should be so stated) for the year A.D. ___________, when _________ became the best bidder therefor, at and for the sum of ______________ dollars and ___________ cents; and the same not having been redeemed, I therefore sell and convey said land to the said _________

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