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