Baird v. Chamberland, 6624.

• Decision Date: 13 May 1940
• Docket Number: No. 6624.,6624.
• Citation: 292 N.W. 219,70 N.D. 109
• Parties: BAIRD v. CHAMBERLAND et al.
• Court: North Dakota Supreme Court

70 N.D. 109

292 N.W. 219

BAIRD

v.CHAMBERLAND et al.

No. 6624.

Supreme Court of North Dakota.

May 13, 1940.

Syllabus by the Court.

1. Chapter 258, Laws of North Dakota 1933, and Chapter 280, Laws of North Dakota 1935, granting additional time within which to redeem from tax sales and extending the time within which certificates of tax sales would remain valid, are by their terms retroactive in operation and applicable to tax sales held prior to their enactment.

2. The sale of property at tax sale, by reason of the delinquency of the landowner in the payment of his taxes, does not create a contractual relationship between the landowner and the county.

3. Right of landowner, whose property was sold at tax sale, to have tax sale certificates canceled at expiration of six years from their date, if tax purchaser had not commenced proceedings to secure a tax deed within that time, as provided by section 2199, Supplement to Compiled Laws of North Dakota 1913, was not a vested right prior to the expiration of the six year period.

4. Chapter 280, Laws of North Dakota 1935, in extending the time within which certificates of tax sales will remain valid from six years to ten years after the date of the certificate, did not impair any right secured to the landowner by contract nor destroy any vested right, and is therefore not objectionable as violating constitutional prohibitions against impairing the obligations of contracts or taking property without due process of law.

Appeal from District Court, Williams County; A. J. Gronna, Judge.

Action by L. R. Baird as receiver of the Williams County State Bank, against J. W. Chamberland and Morten Mortenson, as County Auditor of Williams County, North Dakota, to enjoin the defendants from perfecting or attempting to perfect title to certain realty through proceedings under and by virtue of tax sale certificates. From an adverse judgment, the plaintiff appeals.

Affirmed.

Ivan V. Metzger, of Williston, for appellant.

Eugene A. Burdick, of Williston, for respondent.

BURKE, Judge.

The District Court of Williams County sustained a general demurrer to plaintiff's complaint. Plaintiff has appealed from the order sustaining the demurrer. It is alleged in the complaint that the plaintiff is the owner of certain described real property situated in Williams County; that the defendant, Chamberland, is the owner of tax sale certificates issued by the County Auditor of Williams County on the 9th day of December 1930, as evidence of the sale of such real property to the defendant Chamberland, for taxes assessed against said premises for the year 1929; that the defendant Chamberland did not institute proceedings to acquire a tax deed to said premises within six years after the date of the execution and issuance of said certificates of tax sale; that in December 1938, the defendant Chamberland presented said tax sale certificates to the defendant Mortenson, as County Auditor of Williams County, and demanded that notice of the expiration of the period of redemption from said tax sales be given and that a tax deed to said premises be issued; that in December 1938, said tax sale certificates were null and void and of no effect but that nevertheless the defendant Mortenson issued notices of the expiration of the period of redemption from said tax sales and now threatens to issue a tax deed to said premises to the defendant Chamberland; that plaintiff has no plain, speedy or adequate remedy at law, and that the issuance of a tax deed to said premises to the defendant Chamberland would do irreparable injury to the plaintiff. Plaintiff prayed that the defendants be perpetually enjoined from perfecting, or attempting to perfect, title to the premises described in the complaint, through proceedings under and by virtue of said tax sale certificates.

The question is whether the certificates of tax sale issued to the defendant Chamberland on December 9, 1930, were still valid in December 1938. At the time these certificates were issued the law applicable was section 2199 Supplement to the 1913 Compiled Laws. It reads as follows: “The purchaser of any piece or parcel of land shall, if there be no redemption, be entitled to the possession, rents and profits at the expiration of three years from the date of the certificate, and if on demand of such purchaser to the party or parties in possession, such party or parties refuse or neglect to render such possession, such party or parties may be proceeded against as parties holding over after the determination of his or their estate, which proceedings may be instituted and prosecuted pursuant to the provisions of the law in such case made and provided; provided, however, that all rights of the purchaser and his assigns to the possession, title or lien of any kind, of, to, or upon such piece or parcel of land, shall cease absolutely and be deemed forfeited and extinguished, and the auditor of the county wherein such premises are situated is hereby directed and required to cancel such lien from his records, unless the holder of such tax certificate shall produce to the county auditor of such county such certificate and demand of such auditor the giving of notice of expiration of period of redemption prior to the expiration of six years from and after the date of such certificate, or in case of sales heretofore made and where five or more years have already elapsed since the date of such certificate, then prior to the expiration of one year after the taking effect of this section.”

In 1933, the Legislative Assembly, as a part of a program to cushion the shock of deflation, enacted Chapter 258, Laws of North Dakota 1933. It provided: “That whereas a public emergency and crisis exists throughout this state endangering the public health, welfare and morals, in that agricultural crops and products have been sold on an average below the cost of productionsince 1922, and all agricultural land values have virtually disappeared, due to the nation wide depression, which caused under-consumption and produced starving millions throughout the nation; and whereas taxes have been steadily increasing in spite of the deplorable condition of agriculture, and Whereas agriculture is the principal industry in this state and all other industries are solely dependent for their existence upon agriculture; and whereas there is at present no bank or other institution thru which one can borrow money with which to pay the taxes and such tax debtors are at the absolute mercy of the tax certificate holders; and whereas hundreds and thousands of families have already lost their homes thru tax sales and tax deeds or other judicial proceedings; and whereas hundreds and thousands more will also lose their homes unless some relief is given, therefore in order to prevent the utter ruin and destruction of the people of this state and the collapse of civil government, and in order to maintain the integrity of the family and the home and the public health, welfare and morals of the people of this state, the period within which the holder of a tax certificate can ask for a tax deed and within which the owner may redeem from tax sales is hereby extended for two years from the date of the passage and approval of this Act. Provided, however, that this Act shall not be operative except in favor and on behalf of any owner of such land who shall, within ninety days after the date of the notice of expiration of period of redemption, file with the County Auditor a notice that he desires to take advantage of this Act and the County Auditor, in addition to the notice of expiration of period of redemption...