St. Louis Investment Properties, Inc. v. Metropolitan St. Louis Sewer District

873 S.W.2d 303, 1994 Mo. App. LEXIS 507, 1994 WL 97776
CourtMissouri Court of Appeals
DecidedMarch 29, 1994
DocketNo. 63540
StatusPublished
Cited by7 cases

This text of 873 S.W.2d 303 (St. Louis Investment Properties, Inc. v. Metropolitan St. Louis Sewer District) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Louis Investment Properties, Inc. v. Metropolitan St. Louis Sewer District, 873 S.W.2d 303, 1994 Mo. App. LEXIS 507, 1994 WL 97776 (Mo. Ct. App. 1994).

Opinion

CRANE, Presiding Judge.

Plaintiff, St. Louis Investment Properties, Inc., brought a declaratory judgment action against defendant, The Metropohtan St. Louis Sewer District (MSD), seeking an order declaring 1) that MSD was not empowered to enforce its sewer charges with a hen against two parcels of real estate located in St. Louis County, 2) that the MSD notices of hen on the two properties were subject to prerecorded deeds of trust, and 3) that the MSD notices of hen were extinguished by foreclosures of those deeds of trust. The parties filed cross-motions for summary judgment and a joint stipulation of facts and exhibits. The trial court entered summary judgment in favor of MSD.

Plaintiff appeals on grounds that the judgment was erroneous as a matter of law. We find that MSD had authority to impose hens for delinquent sewer service charges on the property served, but did not have authority to give those hens priority over previously recorded deeds of trust which had been recorded prior to the enactment of § 249.255 RSMo (Cum.Supp.1991). Accordingly, we affirm that part of the judgment finding that [305]*305MSD was empowered to enforce collection of its sewer service charges by imposing liens on the real property served. We reverse the remainder of the judgment and remand.

MSD is a public sewer district created and organized pursuant to § 30(a) and (b), art. VI of the Missouri Constitution. Plaintiff, a wholly owned subsidiary of Boatmen’s National Bank, holds, manages, and markets property obtained through foreclosure. Plaintiff purchased the two parcels of land at issue in this case, which the parties identify as “Parcel 1” and “Parcel 2”, at separate foreclosure sales. Plaintiff subsequently executed continuing indemnity agreements with a title insurance company to insure the parcels without exception for the MSD sewer liens on the property.

Prior to plaintiffs purchase, the relevant history of each parcel is as follows:

PARCEL #1

Moeller Deed of Trust 1/3/83

MSD 1st Notice of Lien 6/19/86

Foreclosure on Moeller Deed of 8/12/86 Trust

Boatmen’s Bank Deed of Trust 3/17/87

MSD 2nd Notice of Lien 8/15/90

Foreclosure on Boatmen’s Deed 5/16/91 of Trust

PARCEL #2

Boatmen’s Bank Deed of Trust 10/15/87

MSD Notice of Lien 10/22/91

Foreclosure on Boatmen’s Deed 10/31/91 of Trust

MSD sewer charges became delinquent in July, 1985 on Parcel 1 and in July, 1989 on Parcel 2.

In 1955 MSD enacted an ordinance which allowed it to impose a lien on real estate for delinquent sewer service charges which had priority over all other liens except taxes, deeds of trust then of record, and prior judgments. This provision became effective January 1,1956 and was contained in subsequent ordinances until 1973. In 1973 an ordinance became effective which gave MSD hens priority over ah other hens, including, among others, deeds of trust. This provision was contained in subsequent ordinances which were in effect until August 24, 1988. The ordinance which became effective on August 24, 1988, and subsequent ordinances, provided that dehnquent MSD sewer service charges could be enforced by hen, but did not mention priority.

Section 249.255 became effective on May 29, 1991. It provided that if a pubhc sewer district places a hen upon a customer’s property for unpaid sewer charges, that hen would have the same priority as state and county taxes. Subsequently this court held that § 249.255 and a similar statute relating to sewer districts in other counties cannot be apphed retrospectively to grant sewer hens priority over deeds of trust and hens recorded prior to the enactment of that statute. Gershman Investment Corp. v. Duckett Creek Sewer District, 851 S.W.2d 765, 769 (Mo.App.1993).

In granting summary judgment for MSD, the trial court found that prior to May 29, 1991 MSD was empowered to enforce collection of its sewer service charges by imposing hens on the real estate served. It also found that MSD notices of hen recorded on June 19, 1986 and August 15, 1990 on Parcel 1 were not subject to the Moeher or Boatmen’s deeds of trust, and the MSD notice of hen recorded on October 22,1991 on Parcel 2 was not subject to the Boatmen’s deed of trust. It further found that the MSD hens on the two parcels were not extinguished by the foreclosures of the deeds of trust.

The version of Rule 74.04(c) which was in effect at the time this matter was before the trial court provided that summary judgment shall be entered “if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Our review of a summary judgment is essentially de novo. ITT Commercial Finance Corp. v. Mid-America Marine Supply Corp., 854 S.W.2d 371, 376 (Mo. banc 1993). We use the same criteria for testing the propriety of summary judgment as used by a trial court in determining whether to sustain the motion. Id. “The burden on a summary judgment movant is to show a right to judgment flowing from facts about which there is no genuine dispute.” Id. at 378. “The key to summary judgment is the undisputed right [306]*306to judgment as a matter of law; not simply the absence of a fact question.” Id. at 380.

On appeal plaintiff does not contend that there are any issues of material fact, but raises two legal issues. First, it argues that the trial court retrospectively applied § 249.-255 to reach its result, and that such application is unconstitutional. Second, it argues that MSD was not authorized by contract or ordinance to impose liens on real property.

I.

For its first point plaintiff asserts the trial court erred in finding that the MSD notices of lien were superior to the earlier filed Boatmen’s deeds of trust because “retrospective application of section 249.255 R.S.Mo. is unconstitutional and inconsistent with the plain language of the statute and MSD’s ordinances.” Section 249.255 reads as follows:

1. Should a public sewer district created and organized pursuant to constitutional or statutory authority place a lien upon a customer’s property for unpaid sewer charges, the hen shall have priority as and be enforced in the same manner as taxes levied for state and county purposes.

This court has held that this section does not apply retrospectively, that is, it does not grant priority to sewer hens over deeds of trust recorded prior to the statute’s enactment. Gershman, 851 S.W.2d at 769.

Both of Boatmen’s deeds of trust were recorded before this statute became effective. Accordingly, this statute may not be used to give the sewer hens priority over Boatmen’s deeds of trust. However, the trial court’s order was not necessarily based on a retrospective application of the statute. As one of its grounds for its motion for summary judgment, MSD asserted its authority to enact ordinances to enforce collection of delinquent sewer service charges by imposing hens. MSD stated that ordinances in effect at the time all the deeds of .

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873 S.W.2d 303, 1994 Mo. App. LEXIS 507, 1994 WL 97776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-investment-properties-inc-v-metropolitan-st-louis-sewer-moctapp-1994.