Regstad v. Steffes

448 N.W.2d 203, 1989 N.D. LEXIS 218, 1989 WL 140067
CourtNorth Dakota Supreme Court
DecidedNovember 20, 1989
DocketCiv. 890108
StatusPublished
Cited by2 cases

This text of 448 N.W.2d 203 (Regstad v. Steffes) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Regstad v. Steffes, 448 N.W.2d 203, 1989 N.D. LEXIS 218, 1989 WL 140067 (N.D. 1989).

Opinion

GIERKE, Justice.

Edward H. Steffes, Steffes Farm Group, Adolph Henke, and Frances Henke [collectively referred to as Steffes] appeal from a partial summary judgment quieting title to certain tax-forfeited land in Lowell D. Reg-stad and R.A. Kost [collectively referred to as Regstad]. We affirm.

Steffes is the former owner of lots in Fargo to which Cass County acquired title by tax deeds. In a letter dated January 28, 1987, Cass County informed Fargo:

“You may purchase these lots for $1.00 per lot. Please send a letter authorizing us to cancel all special assessments on the property if you do wish to purchase these lots....
“There will be a 30-day waiting period before we can issue you a deed as the County Auditor is required to give notice to the former owner.”

In a letter dated February 18, 1987, Fargo informed Cass County that it, wished to purchase the lots, to “[p]lease cancel all 1986 and prior year special assessments” on the parcels, and that “[w]e have sent a check for $592.00 to the County Treasurer for the $1.00 purchase price plus $7.00 recording fee for each parcel.” The Cass County Auditor then notified Steffes of a 30-day period within which to redeem by paying the delinquent taxes, penalties, and interest. Steffes did not redeem.

County deeds to the lots were received by Fargo and were recorded between March 26 and April 7,1987. Fargo publicly advertised the lots for sale on April 26 and 29 and requested sealed proposals by May 4, 1987. Regstad subsequently purchased the lots from Fargo for $63,500 and received a quitclaim deed to the property on May 18, 1987.

Regstad then sued Steffes to quiet title to the property. Steffes answered the complaint and filed a third-party complaint against Fargo and Cass County for damages if Regstad succeeded in the quiet title action. Fargo and Cass County answered the third-party complaint and Fargo counterclaimed against Steffes seeking indemni *205 fication for damages resulting from nonpayment of the special assessments.

The trial court granted Regstad’s motion for summary judgment quieting title to the property in Regstad; granted summary judgment in favor of Fargo and Cass County on the third-party action; and denied Steffes’ motion for summary judgment on Fargo’s counterclaim, concluding that there were genuine issues as to material facts. We dismissed the first appeal which followed entry of the partial summary judgment because Fargo’s counterclaim against Steffes remained pending and no order comporting with Rule 54(b), N.D.R.Civ.P., had been entered. See Regstad v. Steffes, 433 N.W.2d 202 (N.D.1988). After the appeal was dismissed, Regstad sought a Rule 54(b) order from the trial court. Following a hearing on the motion, the trial court determined that there was no just reason for delay and certified the partial summary judgment as a final judgment. Steffes now appeals from the partial summary judgment.

Steffes essentially asserts that defects occurred in the tax-forfeiture process through which Fargo obtained title to the property. Steffes has raised a number of issues regarding the interpretation of §§ 57-28-17, 1 57-28-18, 2 57-28-19, 3 and 57-28-19.1, 4 N.D.C.C., which deal with the *206 disposition of tax-forfeited land acquired by a county.

Regstad initially contends that Steffes does not have standing to challenge Regstad’s title to the property. However, as the former owner of tax-forfeited property, Steffes has standing to challenge a tax-based title by asserting a statutory right to redeem or repurchase the property. Duchscherer v. Aanerud, 216 N.W.2d 279, 281-282 (N.D.1974); Remmich v. Wagner, 77 N.D. 120, 41 N.W.2d 170, 174 (1950).

Regstad asserts, and the trial court held, that even if Cass County’s sale of the property to Fargo were defective, Regstad is entitled to summary judgment under the marketable record title provisions of § 57-28-19.1 because the county deeds were recorded, Fargo entered into possession, and no lis pendens was recorded within three months of the city entering into possession of the property. Although Fargo did not show possession of record by affidavit or possess the property for three months before selling it to Regstad, the trial court concluded that the city “showed possession when the deeds were filed and further evidenced possession by the announcements of sale,” and that § 57-28-19.1 did not impose a three-month-possession requirement. We disagree with the trial court’s interpretation of the statute.

Section 57-28-19.1 is patently ambiguous. We believe, however, that it must be construed to impose a requirement that the city possess real property purchased pursuant to § 57-28-17 or § 57-28-19 for a period of three months before it may be deemed to have marketable record title. The statute deals with “marketable record title.” [Emphasis added]. Thus, a city’s entry into possession must be shown of record, which requires the recording of a document indicating entry into possession. The statute provides that “the fact of possession by the city may be shown of record by one or more affidavits which ... show that the city entered into possession of the property and continued such possession for three months or longer.” To construe the statute without a three-month-possession requirement would render the words “continued such possession for three months or longer” ineffective surplusage. There is a presumption that “[t]he entire statute is intended to be effective.” Section 1-02-38, N.D.C.C. As we said in County of Stutsman v. State Historical Society, 371 N.W.2d 321, 325 (N.D.1985):

“All sections of a statute must be construed to have meaning because the law neither does nor requires idle acts. Section 31-11-05(23), N.D.C.C.; State v. Nordquist, 309 N.W.2d 109 (N.D.1981). In short, we are guided by the commonsense principle that a statute is to be read to give effect to each of its provisions, whenever fairly possible.”

We therefore conclude that for a city to have marketable record title to real estate purchased pursuant to § 57-28-17 or § 57-28-19, the county deed conveying the property must be recorded, the city must enter into possession of the property and continue such possession for three months or longer, and there must be no lis pendens recorded within three months of the date on which the city entered possession.

Although we believe the trial court erroneously interpreted § 57-28-19.1, the partial summary judgment is nevertheless sustainable because the trial court correctly determined that, as a matter of law, Steffes had no right to repurchase the property.

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Bluebook (online)
448 N.W.2d 203, 1989 N.D. LEXIS 218, 1989 WL 140067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regstad-v-steffes-nd-1989.