NO. 81-152
IN THE SUPREME COURT OF THE STATE OF MONTANA
1981
DAVE A. ADKINS,
Plaintiff, Respondent and
Counterclaimant and Defendant,
GERALDINE V. REDEYE and
MARLIN DUANE HUEY,
Defendants, Appellants and
Counterclaimants and Plaintiffs.
Appeal from: District Court of the Nineteenth Judicial District,
In and for the County of Lincoln
Honorable Robert M. Holter, Judge presiding.
Counsel of Record:
For Appellants:
Oleson Law Firm, Kalispell, Montana
Fennessy, Crocker & Fennessy, Libby, Montana
For Respondent:
Williams & Sverdrup, Libby, Montana
Submitted on briefs: September 18, 1981
Decided: December 23, 1981
Filed:.
2 3 I981
# @ Clerk
Mr. J u s t i c e Frank B. M o r r i s o n , J r . , d e l i v e r e d t h e O p i n i o n
of t h e Court.
M a r l i n Duane Huey and G e r a l d i n e V . Redeye, a p p e l l a n t s ,
a p p e a l from judgment e n t e r e d by t h e D i s t r i c t C o u r t o f t h e
N i n e t e e n t h J u d i c i a l D i s t r i c t on J a n u a r y 8, 1981, and from a n
o r d e r d e n y i n g a p p e l l a n t s ' m o t i o n t o amend t h e f i n d i n g s of
f a c t , c o n c l u s i o n s o f law and judgment e n t e r e d on March 1 0 ,
1981. The judgment d e c r e e d Dave A . A d k i n s , r e s p o n d e n t , t h e
owner i n f e e s i m p l e of t h e f o l l o w i n g l a n d i n L i n c o l n County,
Montana :
The S o u t h w e s t Q u a r t e r o f t h e S o u t h e a s t
Q u a r t e r of S e c t i o n 4 , Township 30 N o r t h ,
Range 33 W e s t , M.P.M.
T h i s a p p e a l i n v o l v e s a d i s p u t e o v e r t i t l e t o t h e above-
d e s c r i b e d 40 a c r e t r a c t o f t i m b e r l a n d , o r i g i n a l l y owned by
P h i l l i p Redeye.
P h i l l i p d i e d i n a n a c c i d e n t i n 1955. H i s e s t a t e was
p r o b a t e d and a f i n a l d e c r e e and o r d e r was e n t e r e d i n L i n c o l n
County, Montana, on November 23, 1956. T h i s d e c r e e and
o r d e r d i s t r i b u t e d t h e 40 a c r e t r a c t t o P h i l l i p ' s w i f e ,
G e r a l d i n e V. Redeye ( a / k / a G e r a l d i n e Huey) and t o P h i l l i p ' s
two y e a r o l d s o n M a r l i n Duane Redeye ( a / k / a M a r l i n Duane
Huey) a s t e n a n t s i n common. The November 2 3 , 1956 o r d e r and
d e c r e e was f i l e d i n t h e c o u r t p r o b a t e r e c o r d ; however, no
copy was e v e r c e r t i f i e d and f i l e d i n t h e o f f i c e o f t h e
L i n c o l n County C l e r k and R e c o r d e r .
G u a r d i a n s h i p o v e r t h e e s t a t e and p e r s o n o f M a r l i n Duane
was g r a n t e d t o G e r a l d i n e by t h e Montana c o u r t . Geraldine
and M a r l i n moved t o Washington s h o r t l y a f t e r P h i l l i p ' s
death. S u b s e q u e n t l y , G e r a l d i n e p e t i t i o n e d and was g r a n t e d
g u a r d i a n s h i p o f M a r l i n Duane i n t h e S t a t e o f Washington.
I n 1961, G e r a l d i n e p e t i t i o n e d t h e Montana c o u r t t o
remove t h e p e r s o n a l p r o p e r t y s u b j e c t t o t h e Montana g u a r d i a n -
ship. Removal of p e r s o n a l p r o p e r t y t o t h e S t a t e of Washington
was a u t h o r i z e d by a c o u r t o r d e r d a t e d December 8 , 1961.
T h i s o r d e r d i d n o t t e r m i n a t e t h e Montana g u a r d i a n s h i p .
Tax r e c e i p t s f o r t h e p r o p e r t y w e r e m a i l e d by t h e L i n c o l n
County T r e a s u r e r ' s o f f i c e t o t h e r e c o r d t i t l e - o w n e r , Phillip
Redeye f o r t h e y e a r s 1956 t o 1959 a s f o l l o w s :
Redeye, P h i l l i p
Troy, Montana
Redeye, P h i l l i p
c/o G e r a l d i n e V. Redeye
Troy, Montana
Redeye, P h i l l i p
c / o J a c o b Redeye
Troy, Montana
Redeye, P h i l l i p
c / o M r s . G e r a l d i n e Huey
2400 Donovan, Bellingham,
Washington
The r e c o r d i s somewhat u n c l e a r a s t o who made payment
of t h e t a x e s . P h i l l i p ' s f a t h e r , J a c o b Redeye, p a i d t h e
t a x e s f o r t h e y e a r 1957 and r e c e i v e d a n a s s i g n m e n t of t a x
sale certificate. A p p a r e n t l y , payment of t h e s e t a x e s was
s u b s e q u e n t l y redeemed f o r J a c o b n e v e r o b t a i n e d a t a x deed
f o r the property. Geraldine t e s t i f i e d t h a t she d i d n o t
know who had made t h e t a x payments b u t had assumed t h a t t h e
a t t o r n e y who had p r o b a t e d P h i l l i p ' s e s t a t e and handled t h e
g u a r d i a n s h i p p r o c e e d i n g s was t a k i n g c a r e of such m a t t e r s .
I n 1960, 1961, 1962, 1963, and 1 9 6 4 no t a x payments
w e r e made on t h e 4 0 a c r e p a r c e l . On August 1 0 , 1965, M r s .
Dave A. Adkins p a i d t h e d e f a u l t e d t a x e s and o b t a i n e d a n
a s s i g n m e n t of t a x s a l e s c e r t i f i c a t e from t h e T r e a s u r e r of
L i n c o l n County.
T h e r e a f t e r , Dave A. Adkins undertook p r o c e e d i n g s t o
o b t a i n a t a x deed. Adkins, v i a r e g i s t e r e d m a i l , s e n t n o t i c e
of h i s a p p l i c a t i o n f o r t a x deed t o t h e r e c o r d t i t l e - o w n e r ,
P h i l l i p Redeye, and a l s o t o M r s . G e r a l d i n e Huey. Adkins
m a i l e d t h e s e n o t i c e s t o t h e o n l y a d d r e s s a v a i l a b l e from t h e
County T r e a s u r e r ' s r e c o r d s , 2400 Donovan, Bellingham,
Washington. T h i s n o t i c e was r e t u r n e d by t h e p o s t a l s e r v i c e
marked "Moved -- Not Forwardable."
Adkins t h e n p u b l i s h e d n o t i c e of h i s a p p l i c a t i o n f o r t a x
deed i n t h e "Western News," a newspaper of g e n e r a l c i r c u l a t i o n
i n L i n c o l n County, Montana. This p u b l i c a t i o n appeared f o r
two c o n s e c u t i v e weeks on t h e 1 0 t h and 1 7 t h of F e b r u a r y ,
1966. Adkins s u b s e q u e n t l y a p p l i e d f o r and r e c e i v e d a t a x
deed t o t h e 40 a c r e s on May 4 , 1966.
T h e r e a f t e r , Adkins used t h e l a n d . He h a r v e s t e d C h r i s t m a s
t r e e s on o c c a s i o n and had i t s e l e c t i v e l y logged i n 1969.
He a l s o pruned and t h i n n e d on t h e p r o p e r t y . Adkins c o n t i n u e d
t o pay a l l t a x e s on t h e p r o p e r t y a s t h e y came due.
On A p r i l 5 , 1979, Dave Adkins commenced an a c t i o n t o
q u i e t t i t l e t o the property. G e r a l d i n e and M a r l i n responded
and c o u n t e r - c l a i m e d a l l e g i n g t h a t t h e t a x deed r e l i e d on by
Adkins was i n v a l i d f o r f a i l u r e t o comply w i t h s t a t u t o r y
requirements. G e r a l d i n e and M a r l i n t e n d e r e d a l l t a x e s ,
p e n a l t i e s , and i n t e r e s t a c c r u e d from 1960 t o t h e p r e s e n t .
A t r i a l was h e l d on October 9, 1980. The D i s t r i c t
Court, s i t t i n g without jury, quieted t i t l e t o t h e property
i n Dave A. Adkins.
The p a r t i e s p r e s e n t t h e f o l l o w i n g i s s u e s :
1) Whether Dave A. Adkins complied w i t h t h e s t a t u t o r y
r e q u i r e m e n t s n e c e s s a r y t o o b t a i n a v a l i d t a x deed?
2) Whether Dave A. Adkins a c q u i r e d t i t l e by a d v e r s e
possession?
3) Whether t h e a l l e g e d n e g l i g e n c e of t h e a t t o r n e y who
p r o b a t e d t h e e s t a t e of P h i l l i p Redeye and handled t h e Montana
g u a r d i a n s h i p p r o c e e d i n g s p r e c l u d e s Dave A. Adkins from
obtaining t i t l e t o t h e property?
W e f i n d t h e f i r s t i s s u e t o be d i s p o s i t i v e .
Appellants contend t h a t Adkin's procedure i n o b t a i n i n g
a t a x deed t o t h e d i s p u t e d p r o p e r t y i s d e f i c i e n t f o r two
r e a s o n s : F i r s t , t h e r e was a d e f e c t i n t h e t a x t i t l e c h a i n
and, s e c o n d l y t h e r e was i n s u f f i c i e n t n o t i c e t o G e r a l d i n e and
M a r l i n a t t h e t i m e of a p p l i c a t i o n f o r t a x t i t l e .
A p p e l l a n t s a r g u e t h a t t h e p a r t y who p a i d t h e d e f i c i e n t
t a x a s s e s s m e n t s and r e c e i v e d a n a s s i g n m e n t of t a x s a l e
c e r t i f i c a t e on August 1 0 , 1965, was a M r s . Dave A . Adkins,
whereas t h e p a r t y who undertook a c t i o n c u l m i n a t i n g i n t h e
r e c e i p t of a t a x deed on May 4 , 1966, was Dave A. Adkins.
A p p e l l a n t s a s s e r t t h a t no e v i d e n c e was e v e r p r e s e n t e d i n
t h i s m a t t e r e s t a b l i s h i n g a l e g a l r e l a t i o n s h i p between t h e
two p a r t i e s . Thus, a p p e l l a n t s a l l e g e a d e f e c t i n t h e c h a i n
o f t a x t i t l e which n e c e s s a r i l y i n v a l i d a t e s t h e t i t l e u l t i m a t e l y
o b t a i n e d by Dave A. Adkins.
A f t e r reviewing t h e record i n t h i s m a t t e r , it i s c l e a r
t h a t t h i s c o n t e n t i o n was never r a i s e d a s a n i s s u e i n t h e
D i s t r i c t C o u r t and c a n n o t now be r a i s e d h e r e . Kearns v .
McIntyre Const. Co. ( 1 9 7 7 ) , 173 Mont. 239, 567 P.2d 433.
I n f a c t , appellants' pleadings a s s e r t t h a t
". . . on t h e 1 0 t h of August, 1965, Minnie
0 . Anderson, T r e a s u r e r of L i n c o l n County,
Montana, a s s i g n e d t o c o u n t e r c l a i m a n t d e f e n -
d a n t (Dave A . Adkins) a n a s s i g n m e n t of t a x
s a l e s c e r t i f i c a t e f o r unpaid p r o p e r t y t a x e s
owed t o s a i d County of L i n c o l n f o r t h e y e a r
1960; t h a t on t h e 4 t h of May, 1966, s a i d
Minnie 0. Anderson, L i n c o l n County T r e a s u r e r ,
e x e c u t e d and d e l i v e r e d a t a x deed f o r s a i d
p r o p e r t y t o c o u n t e r c l a i m a n t d e f e n d a n t (Dave
A. Adkins) ."
Having a d m i t t e d t h e s e f a c t s , a p p e l l a n t s c a n n o t c l a i m on
a p p e a l t h a t t h e c h a i n of t i t l e r e l i e d upon by Dave A. Adkins
i n o b t a i n i n g h i s t a x deed was n o t s u f f i c i e n t l y proven.
A p p e l l a n t s a l s o c o n t e n d t h a t Adkins f a i l e d t o comply
with t h e s t a t u t o r y requirements, f o r obtaining a valid tax
deed b e c a u s e Adkins d i d n o t g i v e a p p e l l a n t s p r o p e r n o t i c e a s
r e q u i r e d i n 1966 by S e c t i o n 84-4151, R.C.M., 1947 ( p r e s e n t l y
c o d i f i e d a s S e c t i o n 15-18-202, MCA). Therefore, appellants
c l a i m t h a t Adkins' t a x deed i s i n v a l i d and t h a t t h e y a r e
e n t i t l e d t o redeem t h e p r o p e r t y by p a y i n g a l l t a x e s , p e n a l t i e s ,
and i n t e r e s t a c c r u e d from 1960 t o p r e s e n t .
S e c t i o n 84-4151, R.C.M., 1947, p r o v i d e s i n p e r t i n e n t
part:
"The p u r c h a s e r of p r o p e r t y s o l d f o r d e l i n -
quent taxes ... must, a t l e a s t s i x t y ( 6 0 )
days previous t o t h e e x p i r a t i o n of t h e t i m e
f o r redemption, o r a t l e a s t s i x t y (60) days
b e f o r e h e a p p l i e s f o r a deed, s e r v e upon t h e
owner of t h e p r o p e r t y p u r c h a s e d , -- i f known
... a written notice ... and t h e owner
of t h e p r o p e r t y . .. h a s t h e r i g h t of re-
demption i n d e f i n i t e l y u n t i l such n o t i c e h a s
been g i v e n . . . I n a l l c a s e s where t h e p o s t -
o f f i c e a d d r e s s of t h e owner . . . i s unknown,
t h e a p p l i c a n t s h a l l p u b l i s h once a week f o r
two ( 2 ) s u c c e s s i v e weeks i n a newspaper pub-
l i s h e d i n t h e county where t h e p r o p e r t y i s
s i t u a t e d , a n o t i c e s u b s t a n t i a l l y i n t h e follow-
i n g form . . ."
This Court has c o n s i s t e n t l y held t h a t t h e s t a t u t o r y
r e q u i r e m e n t s f o r o b t a i n i n g a t a x deed must be f u l l y s a t i s f i e d .
Lowery v. G a r f i e l d County ( 1 9 4 9 ) , 1 2 2 Mont. 571, 208 P.2d
478. The c o u r t i n Lowery a l s o s t a t e d t h a t :
"The g i v i n g of t h e n o t i c e i s j u r i s d i c t i o n a l
and u n l e s s t h e r e q u i r e m e n t of t h e law i n
r e s p e c t t o s u c h n o t i c e i s complied w i t h and
t h a t f a c t e s t a b l i s h e d by t h e a f f i d a v i t f i l e d
w i t h t h e c o u n t y t r e a s u r e r t h e t a x deed may
not legally issue." 1 2 2 Mont. a t 580, 208
P.2d a t 483.
With t h i s i n mind w e t u r n t o t h e n o t i c e g i v e n i n t h i s c a s e .
Adkins f i r s t a t t e m p t e d s e r v i c e o f h i s n o t i c e of a p p l i c a -
t i o n f o r t a x deed by m a i l i n g r e g i s t e r e d l e t t e r s c o n t a i n i n g
such n o t i c e t o t h e a d d r e s s and names l i s t e d on t h e 1959 t a x
r e c e i p t r e c o r d s of t h e County T r e a s u r e r . This t a x r e c e i p t
f o r 1959, t h e y e a r i n which t a x e s had l a s t been p a i d upon
t h e p r o p e r t y , l i s t e d P h i l l i p Redeye a s t h e r e c o r d t i t l e -
owner and n o t e d t h e m a i l i n g a d d r e s s t o be: c/o M r s . Geraldine
Huey, 2 4 0 0 Donovan, Bellingham, Washington.
These n o t i c e s w e r e r e t u r n e d t o Adkins marked "Moved --
Not Forwardable." Adkins t h e n p u b l i s h e d t h e s t a t u t o r y
n o t i c e r e q u i r e d by S e c t i o n 84-4151, R.C.M., 1947 i n t h e
"Western News" on F e b r u a r y 1 0 t h and 1 7 t h , 1966. Adkins t h e n
proceeded t o o b t a i n a t a x deed t o t h e p r o p e r t y on May 4 ,
1966.
A p p e l l a n t s a r g u e t h a t , a l t h o u g h P h i l l i p Redeye was
s t i l l l i s t e d a s t h e r e c o r d t i t l e - o w n e r on t h e t r e a s u r e r ' s
t a x r o l l s , n e v e r t h e l e s s Adkins c o u l d e a s i l y have s e a r c h e d
t h e p r o b a t e judgment book, found t h e o r d e r and d e c r e e , and
t h u s d e t e r m i n e d t h e t r u e owners of t h e p r o p e r t y . Appellants
c l a i m t h a t Adkins' f a i l u r e t o c o n d u c t such a s e a r c h r e s u l t e d
i n d e f e c t i v e n o t i c e b e c a u s e Adkins' e f f o r t s a t g i v i n g n o t i c e
c o m p l e t e l y e x c l u d e d t h e minor, M a r l i n Duane Huey, from t h e
notice process.
The d u t y owed by a t a x deed a p p l i c a n t f o r d i s c o v e r i n g
a l l t r u e owners of p r o p e r t y and t h e i r c o r r e c t a d d r e s s e s was
r e c e n t l y d i s c u s s e d by t h i s C o u r t i n Madden v . Zimmerman
( 1 9 7 5 ) , 166 Mont. 285, 532 P. 2d 4 1 4 . I n Madden w e s t a t e d
that:
"The s t a t u t e (884-4151, R.C.M. 1947) s e t s f o r t h
t h e n o t i c e r e q u i r e d by a p e t i t i o n e r f o r a t a x
deed, t o r e q u i r e more i s n o t w i t h i n t h e power
of t h i s C o u r t . To r e q u i r e t h e p e t i t i o n e r t o
s e a r c h o t h e r o r a l l l e g a l r e c o r d s and t o be on
n o t i c e of a l l l e g a l p u b l i c a t i o n s which may
a f f e c t t i t l e t o t h e p r o p e r t y would be o n e r o u s .
" T h e r e f o r e t h e burden must f a l l t o t h e t a x -
p a y e r t o keep t h e t a x i n g a u t h o r i t i e s informed
of h i s i n t e r e s t i n t h e l a n d and h i s c u r r e n t
address. " ( c i t a t i o n o m i t t e d ) 166 Mont. a t
289-290, 532 P.2d a t 417.
Applying t h i s h o l d i n g t o t h e i n s t a n t c a s e , i t i s c l e a r
t h a t a p p e l l a n t s had a d u t y t o keep t h e L i n c o l n County t a x i n g
a u t h o r i t i e s a p p r i s e d of t h e i r c o r r e c t a d d r e s s . Such a c t i o n
was n e v e r t a k e n . Adkins conducted t h e s e a r c h r e q u i r e d of
him t o a s c e r t a i n t h e owners of t h e p r o p e r t y . H e then
complied w i t h t h e r e q u i r e m e n t s of S e c t i o n 84-4151, R.C.M.,
1947, r e l a t i n g t o t h e g i v i n g of n o t i c e . Adkins a t t e m p t e d t o
g i v e n o t i c e by r e g i s t e r e d m a i l ; once t h i s f a i l e d h e r e s o r t e d
t o t h e s t a t u t o r i l y p e r m i s s i b l e mode of n o t i c e by p u b l i c a t i o n .
W e h o l d t h a t Adkins' compliance w i t h S e c t i o n 84-4151,
R.C.M., 1947, a f f o r d e d G e r a l d i n e , p e r s o n a l l y , and M a r l i n
Duane, t h r o u g h G e r a l d i n e , h i s g u a r d i a n of b o t h p e r s o n and
e s t a t e , p r o p e r n o t i c e of t h e a p p l i c a t i o n f o r t a x deed.
Although t h e q u e s t i o n h a s n o t a r i s e n o f t e n o r r e c e n t l y ,
o t h e r j u r i s d i c t i o n s have h e l d t h a t n o t i c e by p u b l i c a t i o n i s
s u f f i c i e n t a s t o a minor's i n t e r e s t i n r e a l property. Hardy
v . Beaty ( 1 8 9 2 ) , 84 Tex. 562, 19 S.W. 778; Wheeler v . S c u l l y ,
e t al. (1872. C t . of App.), 50 N.Y. 666. 4 2 Am.Jur.2dI
I n f a n t s , S197, p r o v i d e s i n p a r t :
"Moreover, t h e r u l e s t h a t unknown c l a i m a n t s
of p r o p e r t y may be s e r v e d by p u b l i c a t i o n and
t h a t a judgment r e n d e r e d a g a i n s t them i s v a l i d
a t l e a s t t o t h e e x t e n t t h a t i t i s i n rem o r
quasi i n r e m apply t o i n f a n t defendants."
T h e r e f o r e , w e h o l d Dave A. Adkins p r o p e r l y complied
with a l l necessary s t a t u t o r y requirements f o r obtaining a
t a x deed and t h e deed i s s u e d by t h e L i n c o l n County T r e a s u r e r
on May 4 , 1966 i s v a l i d . The i s s u e of a d v e r s e p o s s e s s i o n i s
moot.
A p p e l l a n t s ' a l l e g a t i o n r e g a r d i n g t h e n e g l i g e n c e of t h e
a t t o r n e y who p r o b a t e d P h i l l i p Redeye's e s t a t e and who handled
t h e g u a r d i a n s h i p p r o c e e d i n g s f o r G e r a l d i n e Redeye was n e v e r
r a i s e d i n t h e pleadings nor presented t o t h e D i s t r i c t Court.
A s p r e v i o u s l y s t a t e d , i s s u e s must be p r e s e n t e d b e f o r e t h e
D i s t r i c t C o u r t and may n o t be r a i s e d f o r t h e f i r s t t i m e on
appeal. Kearns v . McIntyre Const. Co. (1977), supra.
T h e r e f o r e , t h i s C o u r t d e c l i n e s t o r e v i e w a p p e l l a n t s ' second
issue.
The judgment of t h e D i s t r i c t C o u r t i s a f f i r m e d .
W Concur:
e