Wells Fargo Credit Corp. v. Ziegler

1989 OK 113, 780 P.2d 703, 1989 Okla. LEXIS 134, 1989 WL 78290
CourtSupreme Court of Oklahoma
DecidedJuly 18, 1989
Docket70539
StatusPublished
Cited by25 cases

This text of 1989 OK 113 (Wells Fargo Credit Corp. v. Ziegler) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells Fargo Credit Corp. v. Ziegler, 1989 OK 113, 780 P.2d 703, 1989 Okla. LEXIS 134, 1989 WL 78290 (Okla. 1989).

Opinion

ALMA WILSON, Justice.

This appeal involves a dispute between appellants Zieglers, title owners of realty by virtue of a resale tax deed, and appellee Wells Fargo Credit Corporation, the mortgagee.

In 1983, L.M.B. Enterprises executed a promissory note and mortgage in favor of Wells Fargo. L.M.B. failed to pay the ad valorem taxes on the mortgaged property and the property was subsequently sold to Tulsa County in 1984 for nonpayment of taxes. L.M.B. also defaulted on its promissory note. Consequently, Wells Fargo filed a foreclosure action on April 9, 1987 and contemporaneously therewith filed a notice of pendency of action pursuant to 12 O.S.Supp.1986 § 2004.2. While the foreclosure suit was pending the Tulsa County Treasurer offered the property at resale pursuant to 68 O.S.1981 §§ 24311, 24329 and mailed notice by certified mail pursuant to 68 O.S.Supp.1986 § 24331 to Wells Fargo’s address as shown on the promissory note and in Tulsa telephone directory. However, neither the notice nor a return signed receipt was returned to Tulsa County Treasurer. On June 8, 1987, the Zie-glers purchased the property from Tulsa County for $42,100.00 and received a resale tax deed. In July of 1987, Wells Fargo amended its petition in its foreclosure action naming the Zieglers as additional defendants. In August of 1987, the Zieglers filed a quiet title action. The two cases were consolidated and from the judgment and order rendered therein the Zieglers appeal.

In its Journal Entry of Judgment, the trial court found that Wells Fargo did not receive actual notice of the tax resale and therefore the resale tax deed was ineffective to extinguish Wells Fargo’s mortgage. The trial court further found that any interest acquired by the Zieglers by virtue of the tax sale was subject, junior and inferior to the interests of Wells Fargo by virtue of 12 O.S.Supp.1986 § 2004.2. The trial court ordered that Wells Fargo’s mortgage be foreclosed. The property was subsequently sold at sheriff’s sale and thereafter confirmed by the court wherein Wells Fargo purchased the property for $431,700.00. In its Order Settling Unresolved Issues, the trial court found that pursuant to 68 O.S. Supp.1986 § 24331, the Zieglers received a valid resale tax deed but that due to failure of actual notice of resale to Wells Fargo the resale tax deed was subject to the mortgage of Wells Fargo. By virtue of the valid tax deed the trial court found that 68 O.S. § 24328 was not applicable. 1 Wells Fargo was ordered to pay into court $19,-790.61, the sum of the delinquent taxes, interest and cost, for the benefit of the Zieglers pending the outcome of this appeal. The trial court further ordered that the rent collected by the Zieglers be first applied to any deficiency judgment obtained by Wells Fargo with the excess paid to the Zieglers. The trial court awarded attorney fees to Wells Fargo against the Zieglers pursuant to 42 O.S. § 176.

On appeal the Zieglers urge that the trial court erred in finding that as a matter of law the doctrine of lis pendens operates to prevent sale of real estate for delinquent taxes. This is an erroneous interpretation of the Journal Entry of Judgment and therefore a misstatement of the issue. At no time did the trial court find that the doctrine of lis pendens operates to prevent sale of real estate for delinquent taxes. We therefore do not address the issue as misstated.

*705 The dispositive issue is whether the trial court erred in finding that Wells Fargo did not receive actual notice of the tax resale and the mere publication and mailing of notice without the actual receipt are insufficient where the means of providing actual notice is readily available. We hold the trial court did not err. 68 O.S.Supp.1986 § 24331 provides in pertinent part that the:

County treasurer shall ... give notice by certified mail ... to all mortgagees of record of said real estate a notice stating the time and place of said resale and showing the legal description of the real property to be sold. If the county treasurer does not know and cannot, by the exercise of reasonable diligence, ascertain the address of any mortgagee of record then the county treasurer shall cause an affidavit to be filed with the county clerk ... stating such fact which affidavit shall suffice, along with publication as provided for by this section, to give any mortgagee of record notice of the resale. Neither failure to send notice to any mortgagee of record of said real estate nor failure to receive notice as provided for by this section shall invalidate the resale, but the resale tax deed shall be ineffective to extinguish any mortgage on said real estate of a mortgagee to whom no notice was sent.

The Zieglers argue that under the statute the mailing of notice by certified mail to the mortgagee constitutes actual notice regardless of whether the mailed notice is received by mortgagee. In other words, the Zieglers urge that the literal compliance with the statute by satisfying the act of mailing constitutes notice. This is a too narrow construction. The statute requires the county treasurer to exercise reasonable diligence in locating the mortgagee. Furthermore, prior to an action which will affect an interest in life, liberty or property protected by the Due Process Clause of the Fourteenth Amendment, a state must provide notice reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.” Mennonite Bd. of Missions v. Adams, 462 U.S. 791, 795, 103 S.Ct. 2706, 2709, 77 L.Ed.2d 180, 185 (1983) citing Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306, 314, 70 S.Ct. 652, 657, 94 L.Ed. 865 (1950), “The notice must be of such nature as reasonably to convey the required informa-tion_” Mullane, 339 U.S. at 314, 70 S.Ct. at 657, 94 L.Ed. at 873. The notice as given in this case neither comports with the statutory mandate of reasonable diligence in locating the mortgagee nor with the constitutional requirement of due process. 2 The absence of a return receipt was a red flag alerting the County Treasurer to exercise reasonable diligence in locating Wells Fargo. Yet, the County Treasurer went no further in its attempt to provide notice in this case. The act of mailing, in and of itself, does, not constitute actual notice. “Notice by mail or other means as certain to ensure actual notice is a minimum constitutional precondition to a proceeding which will adversely affect the liberty or property interests of any party_” Mennonite Bd. of Missions, 103 S.Ct. at 2712. In the instant case, the act of mailing without proof of receipt of notice falls short of the exercise of reasonable diligence in assuring actual notice. Pursuant to 68 O.S. Supp.1986 § 24331 “a resale tax deed shall be ineffective to extinguish any mortgage on said real estate of a mortgagee to whom no notice was sent.” In construing § 24331 in its entirety we conclude that no *706 notice is sent unless there is an exercise of reasonable diligence.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jayson W. Davison Trust v. Brockhaus
2016 OK CIV APP 11 (Court of Civil Appeals of Oklahoma, 2015)
CROWNOVER v. KEEL
2015 OK 35 (Supreme Court of Oklahoma, 2015)
Sherbert v. City of Ada
2015 OK 18 (Supreme Court of Oklahoma, 2015)
IN RE: DETACHMENT OF MUNICIPAL TERRITORY FROM THE CITY OF ADA
2015 OK 18 (Supreme Court of Oklahoma, 2015)
Beneficial Financial I Inc. v. Love
2014 OK CIV APP 103 (Court of Civil Appeals of Oklahoma, 2014)
State v. Twenty-Eight Thousand Six Hundred Eighteen Dollars
2009 OK CIV APP 53 (Court of Civil Appeals of Oklahoma, 2009)
State v. $28,618.00
2009 OK CIV APP 53 (Court of Civil Appeals of Oklahoma, 2009)
Garcia v. Ted Parks, L.L.C.
2008 OK 90 (Supreme Court of Oklahoma, 2008)
Franks v. Noble
2007 OK CIV APP 39 (Court of Civil Appeals of Oklahoma, 2007)
Jones v. Flowers
547 U.S. 220 (Supreme Court, 2006)
Plemons v. Gale
396 F.3d 569 (Fourth Circuit, 2005)
Plemons v. Gale
298 F. Supp. 2d 380 (S.D. West Virginia, 2004)
Decker v. James
2000 OK CIV APP 126 (Court of Civil Appeals of Oklahoma, 2000)
Shamblin v. Beasley
1998 OK 88 (Supreme Court of Oklahoma, 1999)
Kester v. Ives
1998 OK CIV APP 109 (Court of Civil Appeals of Oklahoma, 1998)
Stottlemyre v. Haworth
1998 OK CIV APP 31 (Court of Civil Appeals of Oklahoma, 1997)
First Federal Savings & Loan Ass'n, Chickasha, Oklahoma v. Nath
1992 OK 129 (Supreme Court of Oklahoma, 1992)
Malone v. Robinson
614 A.2d 33 (District of Columbia Court of Appeals, 1992)
Citizens National Bank of St. Albans v. Dunnaway
400 S.E.2d 888 (West Virginia Supreme Court, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
1989 OK 113, 780 P.2d 703, 1989 Okla. LEXIS 134, 1989 WL 78290, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-fargo-credit-corp-v-ziegler-okla-1989.