WMAC 2013, LLC v. Dennie R. Gladney

Missouri Court of Appeals·Decided January 14, 2020·No. ED107204·Published

Opinion

In the Missouri Court of Appeals Eastern District DIVISION TWO

WMAC 2013, LLC, ) No. ED107204 ) Respondent, ) Appeal from the Circuit Court ) of St. Louis County vs. ) ) Honorable Thea A. Sherry DENNIE R. GLADNEY, et al., ) ) Appellants. ) FILED: January 14, 2020

Introduction

Dennie R., Sharon, and Diana Gladney (collectively “the Gladneys”) appeal from the trial

court’s grant of summary judgment to WMAC 2013, LLC (“WMAC13”) in a quiet title and

ejectment action. In their sole point on appeal, the Gladneys challenge the trial court’s entry of

summary judgment. The Gladneys contend a genuine issue of material fact exists as to whether

the tax lien certificate on their property was sold to a prohibited purchaser under Section

140.190.2.1 Because the sale of the tax-deficient property to a statutorily prohibited purchaser

does not address a material fact given the circumstances of this case, we deny the Gladneys’

point on appeal and affirm the judgment of the trial court.

1 All Section references are to RSMo (2016). Factual and Procedural History

Dennie R. and Sharon Gladney acquired the real property at 3815 Brown Road in St.

Louis, Missouri (“the Property”) in 2010. Subsequently, Dennie R. and Sharon Gladney failed to

pay property taxes on the Property. In August 2015, WMAC 2014, LLC (“WMAC14”)

purchased a tax lien certificate for the Property at a public tax sale auction. In 2016, Dennie R.

and Sharon Gladney transferred the Property to their daughter, Diana Gladney.

The Gladneys did not redeem the Property within the year following the tax sale.

Consequently, in September 2016, the St. Louis County Collector of Revenue issued a

Collector’s Deed for Taxes for the Property (“the Deed”) to WMAC14, which later conveyed the

Deed to WMAC13. WMAC13 filed a petition to quiet title pursuant to the Deed and to eject

Dennie R. and Sharon Gladney from the Property. Subsequently, Diana Gladney was granted

leave to intervene.

WMAC13 moved for summary judgment against the Gladneys on its petition to quiet

title. In an attempt to defeat summary judgment, the Gladneys argued that they raised a genuine

issue of fact regarding the validity of the Deed. Specifically, the Gladneys offered evidence that

WMAC14 was a successor company of WMAC13. The Gladneys maintained that WMAC14’s

successor liability rendered it a prohibited purchaser at the tax sale under Section 140.190.2

because WMAC13 had failed to pay property taxes on other St. Louis County properties at the

time WMAC14 acquired the Property. The Gladneys reasoned that since WMAC14 was a

successor company of WMAC13 and WMAC13 was a prohibited purchaser, then WMAC14 was

a prohibited purchaser as well. Accordingly, the Gladneys argued that WMAC13 was not

entitled to summary judgment on its petition because WMAC14 obtained the Deed through an

invalid sale.

2 The trial court found that WMAC13 presented a prima facie case for summary judgment

and that no credible evidence was presented to successfully challenge the Deed under Section

140.610. Accordingly, the trial court granted summary judgment. The Gladneys now appeal.

Point on Appeal

In their sole point on appeal, the Gladneys contend that the trial court erred in granting

summary judgment. The Gladneys maintain that they raised a genuine issue of fact regarding

WMAC14’s status as a prohibited purchaser in the tax sale, which, if shown, would render

WMAC13’s title invalid and, as a matter of law, defeat its right to judgment on the petition to

quiet title.

Standard of Review

We review an appeal from summary judgment de novo. Farrow v. Saint Francis Med.

Ctr., 407 S.W.3d 579, 587 (Mo. banc 2013) (citing ITT Commercial Fin. Corp. v. Mid-Am.

Marine Supply Corp., 854 S.W.2d 371, 376 (Mo. banc 1993)). “[We review] the record in the

light most favorable to the party against whom judgment was entered and afford[] that party the

benefit of all reasonable inferences.” Id. (citing Lewis v. Gilmore, 366 S.W.3d 522, 524 (Mo.

banc 2012)). We also review questions of statutory interpretation de novo. Newsome v. Kan.

City, Mo. Sch. Dist., 520 S.W.3d 769, 780 (Mo. banc 2017) (internal citation omitted).

Discussion

Trial courts are required to enter summary judgment where “there is no genuine issue as

to any material fact” and where “the moving party is entitled to judgment as a matter of law.”

Rule 74.04(c)(6).2 “[A] ‘genuine issue’ exists where the record contains competent materials

that evidence two plausible, but contradictory, accounts of the essential facts[.]” ITT

2 All Rule references are to Mo. R. Civ. P. (2018).

3 Commercial Fin. Corp., 854 S.W.2d at 382. “A material fact in the context of summary

judgment is one from which the right to judgment flows.” Goerlitz v. City of Maryville, 333

S.W.3d 450, 453 (Mo. banc 2011) (internal citation omitted). More specifically, “material facts

are those ultimate facts that constitute the elements of a cause of action or affirmative defense[.]”

Custer v. Wal-Mart Stores E. I, LP, 492 S.W.3d 212, 215 (Mo. App. S.D. 2016) (citing ITT

Commercial Fin. Corp., 854 S.W.2d at 379–81).

On appeal, the Gladneys acknowledge that WMAC13 has made a prima facie case for

summary judgment. See Section 140.460.2 (providing that a collector’s deed is “prima facie

evidence of a good and valid title in fee simple in the grantee of said deed”). However, the

Gladneys posit that they sufficiently rebutted the prima facie case by introducing a genuine issue

of fact regarding WMAC14’s status as a prohibited purchaser in the tax sale as the successor of

WMAC13. See Edwards v. Black Twig Mktg. & Commc’ns LLC, 418 S.W.3d 512, 520 (Mo.

App. E.D. 2013) (internal citations omitted) (providing a successor may be liable for the

liabilities of its predecessor where a transaction is entered into fraudulently to escape liability).

The Gladneys then reason that WMAC14’s status as a prohibited purchaser under Section

140.190.2 raises a material fact challenging WMAC13’s right to judgment.

The Gladneys’ argument fails because, under the summary judgment facts presented,

whether WMAC14 was a prohibited purchaser under the statute is immaterial to WMAC13’s

rights in the Property, and its corresponding right to judgment. Therefore, even if the Gladneys

could establish at trial that WMAC14 was a prohibited purchaser, that fact is not material to their

challenge of WMAC13’s title in the Property.

Section 140.610 governs “all suits and controversies involving the title of land claimed

and held by virtue of the deed executed by the county collector for nonpayment of taxes

4 thereon[.]” “[I]n order to defeat the title conveyed by such deed,” the person claiming adverse

title “shall be required to prove” one of the following:

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