Quillens v. Moore

• Decision Date: 12 June 2007
• Docket Number: 2006.,No. 114,114
• Citation: 399 Md. 97,923 A.2d 15
• Parties: Leefen QUILLENS, et. al. v. Richard W. MOORE, Jr.
• Court: Maryland Court of Appeals

923 A.2d 15

399 Md. 97

Leefen QUILLENS, et. al. v. Richard W. MOORE, Jr.

No. 114, Sept. Term, 2006.

Court of Appeals of Maryland.

May 10, 2007.

Reconsideration Denied June 12, 2007.

David J. McDonnell, Towson, for petitioners.

Brian C. Parker (Parker, Dumler & Kiely LLP, Baltimore, Allen Tochterman, Kingsville), Kyriakos P. Marudas, Asst. City Solicitor (George A. Nilson, City Solicitor, Baltimore City Dept. of Law), all on brief, for respondent.

Argued before BELL, C.J., RAKER, CATHELL, HARRELL, BATTAGLIA, GREENE, ALAN M. WILNER, (Retired, specially assigned), JJ.

BATTAGLIA, J.

In the case sub judice, Petitioner, Leefen Quillens, owned eight contiguous pieces of property in Baltimore City upon which he failed to pay real property taxes. At subsequent tax sales, Baltimore City was required to "buy in and hold" two of the properties pursuant to Section 14-824(a) of the Tax-Property Article, Maryland Code (1986, 2001 Repl.Vol.),¹ and Kathleen Parker purchased four of the properties pursuant to Section 14-817 of the Tax-Property Article, Maryland Code (1986, 2001 Repl.Vol.).² Certificates of sale, often times called tax certificates, were issued to both the City and Parker, reflecting that the properties were sold for the total amount of taxes due on the property, including those secured by prior, void tax certificates.

Both the City, in Cases No. 24-C-03-003229 and 24-C-03-003142, and Parker in Case No. 24-C-03-004785, filed complaints in the Circuit Court for Baltimore City to foreclose Quillens' right of redemption.³ Quillens filed answers to the complaints, alleging that the tax sales were invalid because the tax certificates issued thereon purported to sell the properties for taxes secured by previously issued void tax certificates. Subsequently, Quillens moved to consolidate the cases against him with the Rapid Funding Corporation foreclosure case, which was granted.⁴ On August 30, 2005, the Circuit Court entered orders finding that the tax certificates issued to Parker, and consequently the tax sales thereon, were valid, and setting the redemption amount for the City properties. From these orders, Quillens noted an appeal. Subsequently, the Circuit Court entered an order in the City cases foreclosing Quillens' right of redemption, from which he filed an amended notice of appeal. The Court of Special Appeals dismissed the appeal in the Parker case and affirmed the Circuit Court's foreclosure of Quillens' right of redemption in the City cases. We granted Quillens' petition for writ of certiorari,⁵ which posed three questions for our review:

1. Did the Court of Special Appeals err in determining that the notices of appeal from the trial court's August '05 orders were premature?

2. Did the trial court and the Court of Special Appeals err by finding that certain tax sale certificates were valid even though each certificate recited a purchase price which includes amounts which were not taxes and for which liens do not attach to the pertinent property?

3. Did the Court of Special Appeals err (a) in determining that appellants were required to tender payment of taxes and (b) by finding as a fact that appellants indicted no interest in redeeming?

Quillens v. Moore, 396 Md. 12, 912 A.2d 648 (2006).

Because we hold that Quillens' appeal in the Parker case was premature and that he was required to tender payment of the deficient taxes to challenge the tax sales, we affirm the Court of Special Appeals. To provide guidance to the Circuit Court when the Parker case is remanded, we address Quillens' argument that the tax sales were invalid because the certificates issued thereon recited a purchase price including amounts which were included on previously issued invalid tax certificates.

I. Introduction

Quillens owned eight contiguous parcels of property in Baltimore City, located at 1128 and 1130 West North Avenue, and 2301, 2303, 2305, 2307, 2309, and 2311 McCulloh Street, at which he operated a car wash. In 1990, as security for a loan, a deed of trust on the properties was issued to Signet Bank/Maryland; the rights under the deed of trust were subsequently assigned to Rapid Funding.

Between 1994 and 2004, Quillens failed to pay some of the real property taxes on those parcels,⁶ and the following six tax sales, relevant to this appeal, resulted:

A. 2303 McCulloh Street (Ward 13, Section 08, Block 3423, Lot 013)

2303 McCulloh Street was sold at a tax sale on May 15, 1995 to "TCA 96 L.P. & Sun Bank" for $643.34, the amount of deficient real property taxes, interest, and costs for Fiscal Year 1994. Subsequently, the property was sold at a tax sale on May 15, 2000; no third party bid upon the property, and the City bought into and held the property for $1,443.57, the amount of deficient real property taxes, interest, and costs due for Fiscal Years 1997, 1998, and 1999. In 2002, Parker purchased the property at a tax sale for $2,447.12, the amount of the unpaid real property taxes, interest, and costs for Fiscal Years 2000 and 2001, along with the amount secured by the void May 2000 tax certificate.

B. 2305 McCulloh Street (Ward 13, Section 08, Block 3423, Lot 014)

2305 McCulloh Street was sold at a tax sale on May 17, 1999; no third party bid on the property, and the City bought into and held the property for $485.48, the amount of deficient real property taxes, interest, and costs due for Fiscal Years 1997 and 1998. In 2002, Parker purchased the property at a tax sale for $1,642.51, the amount of unpaid real property taxes, interest, and costs for Fiscal Years 1999, 2000, and 2001, along with the amount secured by the void May 1999 tax certificate.

C. 2307 McCulloh Street (Ward 13, Section 08, Block 3423, Lot 015)

2307 McCulloh Street was sold at a tax sale on May 13, 1996, to "FUNB as Custodian for FUNDCO" for $475.09, the amount of deficient real property taxes, interest, and costs for Fiscal Years 1994 and 1995. Subsequently, the property was sold at a tax sale on May 15, 2000; no third party bid on the property, and the City bought into and held the property for $570.23, the amount of deficient real property taxes, interest, and costs due for Fiscal Years 1997, 1998, and 1999. In 2002, Parker purchased the property at a tax sale for $1,155.73, the amount of real property taxes, interest, and costs owed for Fiscal Years 2000 and 2001, along with the amount secured by the void May 2000 tax certificate.

D. 2309 McCulloh Street (Ward 13, Section 08, Block 3423, Lot 016)

2309 McCulloh Street was sold at a tax sale on May 15, 1995; no third party bid on the property, and the City bought into and held the property for $1,164.18, the amount of deficient real property taxes, interest, and costs for Fiscal Year 1994. In 2000, at another tax sale, no third party bid on the property and the City bought into and held that property for $3,449.21, the real property taxes, interest, and costs owed for Fiscal Years 1998 and 1999 along with the amount secured by the void 1995 tax certificate. In 2002, Parker purchased the property at a tax sale for $5,069.44, the amount of real property taxes, interest, and costs owned for Fiscal Years 2000 and 2001, along with the amount secured by the void 2000 tax certificate.

E. 2301 McCulloh Street (Ward 13, Section 08, Block 3423, Lot 012)

2301 McCulloh Street was sold at a tax sale on May 15, 1995; no third party bid on the property, and the City bought into and held the property for $4,114.70, the amount of deficient real property taxes, interest, and costs for Fiscal Years 1992, 1993, and 1994. In 2001, at another tax sale, no third party bid on the property, and the City bought into and held the property for $11,743.76, the amount of real property tax deficiencies, interest, and costs for Fiscal Years 1998, 1999, and 2000, along with the amount secured by the void May 1995 tax certificate.

F. 2311 McCulloh Street (Ward 13, Section 08, Block 3423, Lot 017)

2311 McCulloh Street was sold at a tax sale on May 15, 1995; no third party bid on the property, and the City bought into and held the property for $3,298.81, the amount of deficient real property taxes, interest, and costs for Fiscal Year 1994. In 2001, at another tax sale, no third party bid on the property, and the City bought into and held the property for $9,331.71, the amount of real property tax deficiencies, interest, and costs due for Fiscal Years 1998, 1999, and 2000, along with the amount secured by the void May 1995 tax certificate.

Subsequent to the tax sales, both the City and Parker filed timely complaints in the Circuit Court for Baltimore City to foreclose the right of redemption on the properties pursuant to Sections 14-833 and 14-835 of the Tax-Property Article, Maryland Code (1986, 2001 Repl.Vol.):⁷ on May 2, 2003, the City filed complaints with respect to 2301 and 2311 McCulloh Street (Case No. 24-C-03-003229 and No. 24-C-03-003142); on July 3, 2003, Parker filed a complaint with respect to 2303, 2305, 2307, and 2309 McCulloh Street (Case No. 24-C-03-004785). Quillens filed answers to the complaints, alleging that the Circuit Court did not have jurisdiction because the tax certificates issued pursuant to the tax sales purported to sell the properties for taxes secured by previously issued void tax certificates.

On November 4, 2003, upon Quillens' motion, the Circuit Court ordered that the Parker, City, Lee, and Nochumowitz cases be consolidated with the Rapid Funding case. On August 30, 2005, the Circuit Court issued an order that Parker's tax certificates, and consequently the tax sales thereon, were valid.⁸ The same day, the Circuit Court also issued orders setting the redemption amounts in the City cases: the properties located at 2301 and 2311 McCulloh Street could be redeemed for $22,184.85 and $18,025.69 respectively.⁹ On September 21, 2005, Quillens noted an appeal to the Court of Special Appeals with respect to the August 30th orders. No further action was taken with respect to...