Rosholt v. Snohomish County

• Decision Date: 21 February 1978
• Docket Number: No. 4412-I,4412-I
• Parties: Ernest T. ROSHOLT and Lorraine E. Rosholt, husband and wife, and Richard Rosholt, d/b/a Rosco, Respondents, v. COUNTY OF SNOHOMISH, Respondent, Chris Palzer and Cathy Palzer, husband and wife, Appellants, Gerald D. Rannells and Jane Doe Rannells, his wife, Defendants.
• Court: Washington Court of Appeals

Page 300

19 Wn.App. 300

575 P.2d 726

Ernest T. ROSHOLT and Lorraine E. Rosholt, husband and wife, and Richard Rosholt, d/b/a Rosco, Respondents, v. COUNTY OF SNOHOMISH, Respondent, Chris Palzer and Cathy Palzer, husband and wife, Appellants, Gerald D. Rannells and Jane Doe Rannells, his wife, Defendants.

No. 4412-I.

Court of Appeals of Washington, Division 1.

Feb. 21, 1978.

Don A. Minor, Everett, for appellants.

Jordan, Brinster, Templeman & Jordan, P. S., Dennis W. Jordan, Everett, for Rosholt.

Robert E. Schillberg, Snohomish County Pros. Atty., Elmer E. Johnston, Jr., Deputy Pros. Atty., Everett, for respondents.

CALLOW, Judge.

The defendants Palzer appeal from a judgment setting aside a real estate tax foreclosure deed on the basis that no jurisdiction had been obtained. The property, situated in Snohomish County, is legally described as:

The East 70 feet of Lot 7, Paine Field Addition No. 1, according to the plat thereof recorded in Volume 12 of Plats, page 59, records of Snohomish County, Washington; together with and subject to an easement for ingress, egress and utilities over, under and across the North 30 feet of said Lot 7, except the East 295 feet thereof; and subject to an easement over the North 20 feet of the West 75 feet of the East 290 feet of said Lot 7.

In June 1974, Snohomish County commenced foreclosure of a lien for unpaid 1969 real estate taxes against the property. At that time, the Snohomish County tax rolls carried, as the owner of record of the property, the name of "Ernest I. Rusholt" and listed an address of 777 Maple, Edmonds, Washington. Property tax statements had been sent to this name and address since 1969. The 1968 real estate taxes had been paid in 1973.

Snohomish County took its initial action in foreclosing this tax lien by mailing a property tax statement on June 14, 1974, to the name and address carried on its tax rolls. The statement was sent certified mail, return receipt requested, and shortly thereafter was returned unclaimed. The County then endeavored to obtain a correct address for "Ernest I. Rusholt" by checking its field books, city directories and telephone directories. Being unsuccessful at locating a correct address, the County filed a summons and complaint on August 27, 1974. The name set forth on the pleadings was "Ernest I. Rusholt." Snohomish County subsequently published the tax lien foreclosure notice and summons in the Everett Herald on September 6, 1974, naming "Ernest I. Rusholt" as the owner thereof, together with a description of the property.

On October 15, 1974, a title report was issued on all the properties being foreclosed for tax liens and forwarded to Snohomish County. The title report listed as persons having record title the names "Ernest T. Rosholt and Lorraine E. Rosholt, husband and wife, and Richard Rosholt, d/b/a Rosco."

A field man from the Snohomish County treasurer's office attempted to locate the property owner in order to give notice of the foreclosure proceedings. In November 1974, he visited the property and posted a notice on the house. The house was unoccupied and appeared to have been vacant for some time. By searching for the deed referred to in the title report, the field man discovered that the deed had been returned to a law firm in Everett, Washington, and from this firm he obtained a Culver City, California, address as the current address for the Rosholts.

On November 15, 1974, a certified letter, return receipt requested, was sent by airmail to Rosholt's California address, with a copy of the tax statements covering the property enclosed showing the delinquency in taxes and containing the warning, "You must pay the 1969 tax by November 21, 1974, at 5:00 p. m. to redeem this property." The return receipt was not received by Snohomish County prior to the foreclosure sale.

The tax lien foreclosure sale was held on November 22, 1974, at which time Chris Palzer was the high bidder and purchaser of the property. A treasurer's tax deed was subsequently issued on December 6, 1974. Subsequent to the tax foreclosure sale, Snohomish County received a letter from Rosholt containing a check which had been mailed on November 25, 1974. This check was returned immediately by Snohomish County. Following the foreclosure sale, it was learned that Rosholt was residing in Scottsdale, Arizona.

The plaintiffs Rosholt brought this action to set aside the tax deed. The case was tried to the court and judgment was entered setting aside the tax deed previously issued to Palzer, quieting title to the real property in the Rosholts, and providing for a refund of the purchase moneys paid by Palzer at the tax sale. The defendants Palzer appeal.

The trial court made the following findings:

That on or about October 15, 1974, a title report was ordered and received by the County of Snohomish pursuant to the requirements of R.C.W. 84.64.050, which title report stated that the record title owners to said property were the following persons: Ernest T. Rosholt, Lorraine Rosholt and Richard Rosholt, d/b/a Rosco.

Finding of fact No. 6.

That further investigation by county officials showed that the Plaintiff Rosholt resided in Culver City California. That on November 15, 1974, a certified letter, return receipt requested, was sent by airmail to Plaintiff Rosholt's Culver City address, which letter enclosed a copy of the tax statements covering said property showing the delinquency in taxes. That the return receipt regarding said certified letter was not received back by the County of Snohomish prior to the foreclosure sale.

Finding of fact No. 7. Error was not assigned to these findings and they are deemed to be verities on appeal. State v. Reader's Digest Ass'n, Inc., 81 Wash.2d 259, 263-64, 501 P.2d 290 (1972).

The issue presented is whether jurisdiction is obtained in a tax lien foreclosure proceeding under RCW 84.64.050 by publishing the name carried on the tax rolls and attempting to give the owner notification when record title is carried on the tax rolls under an incorrect spelling.

The defendant Palzer asserts that Snohomish County complied with RCW 84.64.050 and acquired jurisdiction. This assertion is based on the assumption that the notice requirement was met when Snohomish County published the name "Rusholt" in the local newspaper and mailed a notice by certified mail to the address on the current tax roll. It is asserted that the misspelling of the name on the tax rolls should not be dispositive, for the misspelling was of such a minor character as not to mislead anyone. Further, the defendant argues that absolute accuracy was not required and that the taxpayer should be held to be responsible for the name that appeared on the previous year's tax statement. We do not agree.

RCW 84.64.050 sets out the procedure a county must follow in foreclosing tax certificates of delinquency. ¹ It is uncontested that only one of the three record title holders was ever given any kind of notice of the foreclosure sale. Jurisdiction for a foreclosure pursuant to RCW 84.64.050, however, is dependent on compliance with the statute. It was stated in Pierce County v. Evans, 17 Wash.App. 201, 204, 563 P.2d 1263, 1265 (1977):

Initially we note that failure to comply with statutory provisions relating to the content and manner of notice in proceedings to collect delinquent taxes leaves the...