Farmer With Long History of Debt Problems Uses Technicality To Defeat Quiet Title Action

The defendant, an Iowa farmer who sustained debt-related financial problems in the 1980s, failed to pay his property taxes in 2007.  A third party bought the tract in question at a tax sale auction, paid the delinquent taxes and received a tax sale certificate.  The defendant did not redeem the property during the statutorily-required 21 month period.  The third party then served notice on the defendant of the expiration of the right to redeem.  The third party then filed an affidavit of service of notice with the county treasurer.  The affidavit contained an incorrect date, referring to "2011" instead of "2012".  The defendant did not redeem the property during the additional redemption period of 90 days.  After the expiration of the 90-day period, the third party assigned its interest in the tax sale certificate to the plaintiff who then recorded it.  Two months later, the plaintiff filed a quiet title action against the defendant.  The second paragraph of the pleadings contained an incorrect legal description, but the correct legal description was contained in attachments to the petition, which included the tax deed, tax sale certificate and the previously served notice of right to redeem.  The defendant, even though knowing full well which tract was at issue, moved to dismiss the quiet title action, and the plaintiff moved to amend the petition to correct the legal description in the pleadings.  The trial court saw through the defendant's deception and allowed the plaintiff to amend the pleading.  The trial court stated, "the defendants cannot seriously argue they were prejudiced or unfairly surprised  by Plaintiff's proposed amendment.  Attached to the petition were the Tax Deed and the Notice of Expiration of Right of Redemption contained the correct legal description.  Additionally, the Certificate of Purchase from the Washington County tax sale contained a correct abbreviated legal description, the VIN number of the property, and a parcel number particular to the property at issue."  The defendant also made no claim of surprise, but came to trial fully prepared to dispute the plaintiff's claim to the actual parcel at issue.  On appeal, the court reversed on the basis that the notice did not comply with Iowa Code Sec. 649.3 which requires the notice in a quiet title action to adequately describe the property.  Incredibly, the court said the legislative intent behind the provision was to "require ample notice to a defendant facing a quiet title action," but then ignored that legislative intent to determine that ample notice had not been give because the pleadings contained an incorrect legal description but the attachment contained multiple references to the correct parcel, and the defendant was not, in fact, deceived in any manner - thus, comporting with the legislative intent.  Also, incredibly, the court determined that the reference to the wrong year in the notary jurat of the affidavit of service was not a defect which would invalidate the tax deed.  The court held that the trial court abused its discretion in allowing an amendment of the pleadings.  The case was remanded with instructions to grant the defendant's motion to dismiss without prejudice.  Adair Holdings, L.L.C. v. Escher, No. 14-0477, 2015 Iowa App. LEXIS 106 (Iowa Ct. App. Feb. 11, 2015).