Bean v. State Land Office Bd., Oakland County, Troy Tp., 70

• Citation: 55 N.W.2d 779,335 Mich. 165
• Decision Date: 09 December 1952
• Docket Number: No. 70,70
• Parties: BEAN et al. v. STATE LAND OFFICE BOARD, OAKLAND COUNTY, TROY TP., et al.
• Court: Michigan Supreme Court

Page 779

55 N.W.2d 779

335 Mich. 165

BEAN et al. v. STATE LAND OFFICE BOARD, OAKLAND COUNTY, TROY TP., et al.

No. 70.

Supreme Court of Michigan.

Dec. 9, 1952.

Walter O. Estes, Lansing, Mich., for appellants.

Frank G. Millard, Atty. Gen., Edmund E. Shepherd, Sol. Gen., Lansing, Elbern Parsons, Chief Asst. Atty. Gen., for Appellee State Land Office Board.

Harry J. Merritt, Oakland County Corp. Counsel, and Charles A. Davis, Asst. Corp. Counsel, Pontiac, for County of Oakland.

Charles H. Losey, Clawson, for City of Clawson.

Dell & Heber, Royal Oak, for Troy Tp.

Before the Entire Bench.

SHARPE, Justice.

On June 9, 1941, plaintiffs filed their bill of complaint in which they allege that as beneficiaries under the will of Louise Most, they are title owners of certain lands in Maple Road Park in Troy Township, Oakland County, Michigan.

Plaintiffs allege that the city of Clawson claims to have taken over certain of said lands for public purposes, without any bid thereof, under Act No. 155, P.A.1937, as amended, and that a large portion of the claimed tax liability for which said lands were offered for sale were levied and spread by the Village of Clawson; that all taxes levied and spread by the Village of Clawson were absolutely void, because said lands were not within the corporate limits of said village.

Paragraph VI of plaintiff's bill of complaint reads as follows:

'VI.

'Plaintiffs further show unto the court that said taxes alleged to have been levied and spread by the Village of Clawson were absolutely void because said Village of Clawson never legally incorporated said territory into said Village. In that connection plaintiffs further show unto the court that on April 4, 1927, an election was held on the proposition of incorporating said southeast quarter of the northeast quarter of Section 33 into said Village of Clawson, together with the northeast quarter of the northeast quarter of said Section 33. At said election the election board declared that said proposition carried in favor of annexing said territory to the Village of Clawson. W. J. Burns, the then owner of the northeast quarter of the northeast quarter of said Section 33, petitioned for a recount of said election on the 5th day of April 1927. Said recount was allowed and held on the 22nd day of April 1927. At the close of said recount it was announced publicly that said entire election failed to carry. No subsequent election has ever been taken upon the incorporation of said territory into the Village of Clawson. All taxes purported to have been levied against said land by the Village of Clawson, which your plaintiffs show upon information and belief is the major portion of the taxes on account of which the State offered said lands for sale, were without any legal authority and therefore absolutely void.'

Paragraph VIII of the bill of complaint reads as follows:

'VIII

'Plaintiffs further show unto the Court that the last assessment for taxes against said lands prior to the purported sale thereof under the provisions of Act No. 155, P.A.1937, as amended, places an excessive value thereon and that the valuations on the respective lots bore no proportion to the true cash value of said lots. By comparison with similar lots in the immediate neighborhood and within said subdivision itself lots of little value were assessed in excess of much better located lots of greater natural value and with better improvements in connection therewith. Plaintiffs charge that the assessment of said lots upon which the minimum sale price was determined under Act No. 155, P.A.1937, was a fraudulent assessment.'

The relief asked for in the bill of complaint is:

'2. That all taxes heretofore assessed against said lands may be declared to be void and cancelled.

'3. Or in lieu thereof, such taxes as were fraudulently assessed without any authority whatever may be declared to have been void and cancelled.

'4. That all sales for taxes heretofore made of said lands may be declared to be void and be set aside and held for naught.

'5. That the Court indicate that units of government were entitled to assess taxes against said lands.

'6. That the Court fix and determine the basis upon which taxes should be assessed against said lands for the years for which taxes have been unpaid.'

On June 18, 1941, the County of Oakland filed a motion to dismiss the bill of complaint for the following reasons:

'1. Plaintiff's entire complaint is grounded on the claim that the taxes, the failure of which to pay resulted in the State acquiring title, are invalid and void.

'2. Assuming this to be true, defendant contends:

'A. Plaintiffs herein were Defendants in the 1938 tax sales proceedings at which time the validity or invalidity of those taxes was in issue as were all other issues within the jurisdiction of the Court.

'B. By virtue of the 1938 tax sale decree (M.S.A. 7.112-C.L.1929 Section 3459) the Court then found, 'It is ordered, adjudged and decreed that the amount of taxes, interest, collection fee and charges set down in the column headed 'Amount decreed against lands' in the tax record of which said petition forms a part, are valid * * *.''

'C. The statute then orders the sale and sets up the machinery for appeal to the Supreme Court and no appeal was taken.

'D. Section 70 of the tax law, M.S.A. 7.115 provides for the sale and contains the following: 'Provided, further, 'That no sale shall be set aside after confirmation, except in cases where the (A) the taxes were paid, or (B) the property was exempt from taxation.' In such cases the owner of such lands may move the Court at any time within one (1) year after he shall have notice of such sale, to set the same aside, and the Court may so order upon such terms as may be just.'

'E. The taxes complained of in the instant case were not paid and there is no contention that the property was exempt.'

The township of Troy and the City of Clawson also filed motions to dismiss. On August 6, 1945, the trial court entered an order denying the several motions to dismiss. Application for leave to appeal from the trial court's decision was made and denied by the Supreme Court, but without prejudice. On December 21, 1945, the Auditor General, State Land Office Board, and the County of Oakland, filed an answer and motion to dismiss. The answer contains the following:

'1. That defendant, State Land Office Board is a public corporation created and existing under and by virtue of the provisions of Act No. 155 of the Public Acts of 1937, as amended, commonly called the Land Board, Act, clothed with the power and charged with the duty of administering, selling and otherwise disposing of all land in the County of Oakland, the title to which has become vested in the State of Michigan by virtue of the failure of interested parties to redeem from the annual tax sales held in the years 1938 and 1939, and all such lands are under its jurisdiction and control in accordance with the provisions of the aforesaid Land Board Act.

'2. According to the files and records of this Court made in connection with the 1938 and 1939 tax sale proceedings, being Oakland County Chancery Nos. 20,679 and 21,087 respectively, to which reference is hereby prayed, and according to the public records in the offices of the Auditor General and the Oakland County Treasurer, the property described in plaintiffs' bill of complaint was returned delinquent for the taxes assessed thereon in 1935 and prior years and also was returned delinquent for the taxes assessed thereon in the year 1936, in accordance with the provisions of Act No. 206 of Public Acts of 1893, as amended, applicable to taxes returned delinquent for said years, commonly called the General Property Tax Law, wherefore, pursuant to the pertinent provisions of said General Property Tax Law, as amended applicable to each of the aforesaid tax sales, the Auditor General included said lands in his petitions filed in this Court in connection with proceedings instituted for the purpose of enforcing the payment of the aforesaid delinquent taxes, which proceedings may be found in the chancery files above referred to.

'3. Said petitions having come on to be heard by this Court and proofs of the due publications of the orders of hearing and of said petitions, and the schedules respectively annexed to each such petition, containing, inter alia, the descriptions of the premises described in plaintiffs' bill of complaint, having been made and filed in each of said causes and after having heard all objections to said petitions, and after having heard all parties interested in the matters included in said petitions, this Court in each of said causes rendered its Decree and determining and decreeing that the amounts of taxes, interest and charges for which said premises were alleged to be delinquent were correct, and that said taxes were valid, and decrees in favor of the State of Michigan for the payment of said amounts were thereupon made, which decrees provided, in effect, that in default of such payment said lands should be sold at the 1938 and 1939 tax sales, respectively, and that unless redeemed from said sales within eighteen months next following each of said sales, the title thereto, in case the same should be bid in to the State of Michigan, and not then redeemed, should thereupon become absolute in the State of Michigan, which decrees were rendered upon the 23rd day of April, 1938, as to the 1938 tax sale, and upon the 22nd day of April, 1939, as to the 1939 tax sale.

'4. Pursuant to said decrees so made by this court in accordance with the provisions of the General Property Tax Law, particularly Section 67 thereof, as amended by Act No. 114 of the Public Acts of 1937, the Auditor General offered said premises for sale in accordance with the pertinent provisions of the General Property Tax Law, particularly Section 70 thereof as amended applicable to each of said sales, at said 1938 and 1939...