Mark A. Saccullo v. United States
Opinion
One relic of the English legal tradition holds that, as a general matter, the sovereign (here, the United States) is not bound by statutes of limitation or subject to laches. The question before us is how this vestigial rule-
nullum tempus occurrit regi
, or, as the parties here call it, the "
Summerlin
" principle, after
United States v. Summerlin
,
At issue in this case is whether
I
A
Mark Saccullo has lived on the property at issue here, the site of his childhood home, since 1991. In 1998, Mark's father Anthony, who owned what we'll call "the Property" in fee simple, executed a deed that purported to convey it to the "Anthony L. Saccullo Irrevocable Trust for the benefit of Mark A. Saccullo." For the most part, the deed conformed to the necessary formalities, and it was properly notarized and recorded in December 1998. There was just one glitch: the deed bore the signature of only one witness, not the two required by
When Anthony died in December 2005, Mark became the trustee of his father's irrevocable trust. Mark filed an estate-tax return and-mistakenly it now seems-included the Property among the estate's assets. In 2007, the IRS assessed an estate tax of almost $1.4 million, apparently under the impression that the estate still owned the Property. Shortly thereafter, Mark, acting in his capacity as trustee, conveyed the Property via quitclaim deed to himself and his wife.
Because the estate-tax liability remained delinquent, the government filed two tax-lien notices with Charlotte County, Florida-one against the estate in 2012, and another against the Property in 2015. The IRS later administratively seized the Property and unsuccessfully sought to sell it, as the estate-tax liability increased to $1.6 million.
B
After the administrative seizure, Mark filed a quiet-title action in the United States District Court for the Middle District of Florida, contending that the liens didn't cover the Property because it was (in fact) not part of his father's estate when he died. 1 The government counterclaimed, seeking to foreclose on its liens.
The government subsequently moved for summary judgment on its counterclaim arguing, as relevant here, that the Property remained in Anthony's estate, and was thus "subject to [the government's] tax lien" because, as explained above, "the 1998 deed was not properly witnessed." 2
*1014
In opposing the government's motion, Mark relied on
[f]ive years after the recording of an instrument required to be executed in accordance with s. 689.01... from which it appears that the person owning the property attempted to convey [the property], ... the instrument ... shall be held to have its purported effect to convey [the property] ... as if there had been no lack of ... witness or witnesses ... in the absence of fraud, adverse possession, or pending litigation.
The district court granted the government's summary-judgment motion, holding that despite § 95.231(1) the Property remained in the estate and that the IRS could therefore foreclose on its liens. First, the court concluded that § 95.231(1) did not create good title in the trust because the deed's missing second witness was not among the technical defects that the statute operates to cure. Second, and in any event, the court held that § 95.231(1) is essentially a statute of limitations, which, under Summerlin , does not bind the United States. Accordingly, the district court ordered foreclosure and sale of the Property and required Mark to vacate within 30 days.
This appeal followed.
3
Although we initially denied Mark's motion to stay the order of sale pending our review, we later granted his renewed stay motion and directed the parties to submit supplemental briefing on the question whether
II
Before diving too deeply into
Summerlin
, we need to establish a state-law baseline: As a matter of Florida property law, who owned what, and when? To answer that question, we look first to the text of § 95.231. Again, in relevant part, that statute provides that, absent exceptions that don't apply here, "[f]ive years after the recording of an instrument required to be executed in accordance with s. 689.01... from which it appears that the person owning the property attempted to convey [the property], ... the instrument ... shall be held to have its purported effect to convey [the property] ... as if there had been no lack of ... witness or witnesses."
Section 95.231 's second clause-which cuts off claims after 20 years-plainly falls within
Summerlin
's ambit, as it is "clearly a limitations statute."
Earp & Shriver, Inc. v. Earp
,
A
First, a threshold issue: Setting aside the United States' involvement-and for the moment, Summerlin -is the witness-related defect here the kind of technicality that § 95.231(1) operates to rectify? The district court held that it isn't. The court reasoned that the statute "cannot be used to create title where none existed" and that the absence of the prescribed number of witnesses rendered the deed statutorily incurable.
That is incorrect, as both parties agree. In its brief to us, the government concedes that "the absence of a required witness signature" did not "invalidate[ ] the 1998 deed beyond the reach of [the] statute." Section 95.231(1) expressly states that after the requisite five-year period a recorded deed "shall be held to have its purported effect" despite the "lack of ... witness or witnesses." Thus, at least in the ordinary case, a missing witness is precisely the kind of defect that the statute was designed to cure.
B
The parties' agreement ends there. They diverge over § 95.231(1) 's operation-in particular when, and how, the statute cures defective deeds. The dispute here turns on § 95.231(1) 's statement that an otherwise-defective deed "shall be held to have its purported effect" five years after it is recorded-and, in particular, how to understand the phrase "shall be held."
Both readings are plausible. It's true, as the government asserts, that the "shall be held" language could be understood to supply a rule of decision for an adjudicative proceeding, such that the phrase indeed "requires a holding." According to one dictionary definition, for instance, "hold" means "to decide in a judicial ruling," as in "the court held that the man was sane."
Webster's Third New International Dictionary
1078 (2002). But the word "held" is not only, or even principally, court jargon. "[S]hall be held" could just as sensibly be construed to mean something like "shall be considered"-to take just one fairly prominent example, "We hold these truths to be self-evident ...." And indeed, the same dictionary that supplies a court-related definition also-and in fact beforehand-defines "hold" to mean "consider, regard, think, judge"-as in "held by many to be the greatest contemporary tennis player."
Happily, it's not up to us to pick and choose between these competing constructions of § 95.231(1). We are bound by the Florida courts' interpretation of Florida
*1016
law,
see, e.g.
,
Bradshaw v. Richey
,
We hold, then, that Mark didn't have to go to court to enforce § 95.231(1) 's curative provision. Instead, the deed was "held"-as in considered-"to have its purported effect" by operation of law in December 2003, five years after it was initially recorded.
III
So where does that leave us vis-à-vis
Summerlin
? Under
Summerlin
, "[w]hen the United States becomes entitled to a claim, acting in its governmental capacity and asserts its claim in that right, it cannot be deemed to have abdicated its governmental authority so as to become subject to a state statute putting a time limit upon enforcement."
Summerlin
,
A
As noted at the outset, the so-called
Summerlin
rule dates to well before the
Summerlin
decision itself. Riding circuit in an early case, Justice Joseph Story invoked the rule and, for support, cited English cases and commentaries stretching back to the 1200s.
See
United States v. Hoar
,
Over time, courts have made clear that
nullum tempus
provides a hedge against, well, bad government. In particular, the rule is founded on the concern that the public suffers when the government sleeps
*1017
on its rights.
See
United States v. Delgado
,
Importantly here, the
Summerlin
principle has its limits. In
Guaranty Trust
, for example, the Supreme Court held that the
nullum tempus
rule is inapplicable where the United States has not "acquired a right free of a pre-existing infirmity."
B
What, then, of this case? Does Summerlin forestall the operation of § 95.231(1) or not? Because, following Florida's lead, we have held that the statute is self-executing, the question admits of an easy answer. We hold that Summerlin is inapplicable here because, by operation of § 95.231(1), the Property dropped out of the estate in December 2003, five years after the deed was originally recorded-and, importantly, roughly two years before Anthony died, and thus before any claim asserted by the United States could have accrued.
As already explained, the
Summerlin
principle applies only "[w]hen the United States becomes entitled to a claim."
Summerlin
,
*1018
Not only is this case not within the letter of the
Summerlin
rule, it is not within its spirit, either. This isn't a situation in which the United States missed out on a claim because some government employee was asleep at the switch and negligently let a clock run out. Because Mark's father didn't die until 2005, no amount of diligence on the part of the IRS could have made it possible for the government to acquire a valid estate-tax claim before the deed was statutorily cured in 2003. As in
Guaranty Trust
, "the circumstances of the present case admit of no appeal" to
Summerlin
's policy underpinnings, because "[t]here has been no neglect or delay by the United States or its agents, and it has lost no rights by any lapse of time."
IV
In sum, we hold that
REVERSED AND REMANDED .
Federal question jurisdiction arises under
The government also argued that the deed was void because it failed to properly identify a grantee. The district court rejected that argument, and the government does not repeat it here.
Because this appeal comes to us on summary judgment, we review the district court's decision
de novo
.
United States v. Spoor Tr. of Louise Paxton Gallagher Revocable Tr.
,
Reference
- Full Case Name
- Mark A. SACCULLO, as Successor Trustee of the Anthony L. Saccullo Irrevocable Trust for the Benefit of Mark A. Saccullo, Plaintiff-Counter Defendant-Appellant, Dorothy A. Saccullo, Counter Defendant-Appellant, Tax Collector of Charlotte County, Florida, Counter Defendant, v. UNITED STATES OF AMERICA, Defendant-Counter Claimant-Appellee.
- Cited By
- 2 cases
- Status
- Published