People ex rel. Hamilton Park Co. v. Wemple

The comptroller, in the year 1877, sold for unpaid taxes accruing from 1867 to 1870 inclusive, in township No. 36, in Hamilton county, 17,245 acres of land, more or less, being all that remained of the township after deducting certain exceptions as described in the certificates of sale, and by his deed thereafter made, dated January 29, 1884, conveyed the same to Charles W. Durant

The comptroller also, in 1881, sold for unpaid taxes of 1871 to 1876 inclusive, in the same township 20, 954 acres of land, more or less, being the land not under water of all that remained of that township after making certain exceptions described in the certificate of sale; and on the 29th day of January, 1884, gave his deed as comptroller to Howard A. Durant for the same.

In 1885 the comptroller sold for unpaid taxes of 1877 to 1882 inclusive the same lands that were sold by him in 1881 in that township, and executed therefor a comptroller’s deed, dated April 9, 1889, to Howard M. Durant.

The return shows that the relator succeeded to the title acquired by Charles W. and Howard M. Durant, after the conveyances to them by the comptroller, but at what precise time the record on this certiorari does not disclose.

On December 9, 1885, the Adirondack R. R. Co. applied to the comptroller to cancel the tax sales of 1877, 1881 and 1885, on the ground that they covered property belonging to the company; and which, under the laws of the state, were exempt from taxation. On the application, the comptroller held that the former owner of the land is not a proper party to apply to the comptroller to cancel a tax sale, and denied the application. And his decision was dated June 23, 1888.

On the 27th of December, 1889, an application was made by Janet' L. Durant, Edward L. Molinoux and the legal representative of the Adirondack Eailway Co., to the comptroller, to cancel the tax sales for the year 1885. That application was made on the ground that the taxes for the year for which it was made were not extended by the board of supervisors of the county, but by the individual supervisor of the town.

On the 17th of November, 1891, an application was filed in the office of the comptroller by the Adirondack Eailway Co. and certain of its grantees, asking for a rehearing of the application filed December 30, 1885.

This application was opposed by the relator, but was, on the 30th of December, 1891, granted by the comptroller by the following order:

“ State of New York,

“ Comptroller’s Office,

“Albany, Dec. 30, 1891.

“ It appearing to my satisfaction that the lands described as Hamilton county, Totten & Crossfield’s purchase, Township 36, N. W. corner, 1,000 a., S. E. corner, 2,000 a., during all of each of the years, 1867 to 1882, inclusive, belonged to the Adirondack Company, its assigns or successors, and that said lands, pursuant to the provisions of chapter 236, Laws of 1863, and amendatory and subsequent acts, were then exempt from taxation.

“ And it further appearing to my satisfaction that the board of supervisors of Hamilton county, in 1867 to 1882, inclusive, failed to extend any taxes on the assessment rolls of the Town of Long Lake, the cancellation of 1877, 1881 and 1885 tax sales of said lands, as well as of the part of said township subject thereto, in accordance with the requirements of chapter 217, Laws of 1891, is hereby ordered.

“ Edward Wemple,

“ Comptroller.”

The relator, by this writ, seeks to review this determination of the comptroller; and insists that that officer wholly misconstrued the effect of chapter 217 of the Laws of 1891, under which he assumes to act in vacating these tax sales.

The principal questions, or, at least, the first question, presented for consideration on this certiorari is, whether chapter 217 of the Laws of 1891 confers upon the owners of land sold for taxes the power and right to apply to the comptroller to cancel a tax sale.

Prior to the enactment of that chapter, it had been held by the court of appeals in the' case of People ex rel. Wright v. Chapin, Comptroller, 104 N. Y., 369 ; 6 St. Rep., 837 , that the owner of the land sold for taxes by the comptroller was not permitted to test the validity of the sale by an application to that officer to set aside the sale. In that case the court uses the following language, in the discussion of this question: “ The owner of the land is not a party to the proceedings, nor can he be permitted in this way to-test the validity of the sale or tax. In such a controversy the purchaser would have an interest and right to its protection in the courts by the usual course of legal prooceedings.

“ The statute contains no intimation of a legislative purpose to deprive him of that right. It gives no process to bring him in; confers no power to compel witnesses. In short, it creates no court, provides for a single transaction to which the comptroller and purchasers are the only parties.”

Acting upon this decision the comptroller, on the 23d of January, 1888, in disposing of an application of the Adirondack Railway Company for cancellation of certain tax sales of lands in township 36, Hamilton county, used this language : “ After careful consideration of the matter, I think the application must be denied under the authority of People ex rel. Wright v. Chapin,

It would thus seem that the law upon that subject was authoritively settled,■, until the decision of the People v. Turner, 117 N. Y., 237 ; 27 St. Rep., 158 , which again seemed to involve the question in doubt, the court, after discussing the constitutional requirements of notice of the time and place at which the taxpayer may be heard before his property can be taken upon tax assessments and tax sales, Ruger, Oh. J., uses this language: “ But more than this, after the tax has been returned to the comptroller, the taxpayer has still the right, both before and after a sale of his property, to appear before that officer and make proof of any illegality in the tax levy, and demand that such tax and any sale made thereon shall be cancelled by him,” citing §§ 83 and 84, of Laws of 1855.

“And finally, the act of 1885 itself provides for the exercise of the right of the comptroller to cancel taxes and sales illegally made, when the taxes have been legally paid, or when the town or ward had no legal right to assess the land.

These rights were not only open to the taxpayer to exercise at any time previous to the act of 1885, but the right of all persons to exercise them was also preserved in all cases for six months after the passage of that act.”

This case was decided in November, 1889, and before the enactment of chapter 217 of the Laws of 1891, and it is insisted by the comptroller that this latter act was passed in part to relieve the question from the confusion in which, by the two decisions from which we have quoted, it was apparently involved.

Chapter 217 of the Laws of 1891 amends § 2 of chapter 427 of the Laws of 1855, so as to read as follows: “The provisions, of this act are hereby made applicable to all the counties of this, state, except the counties of Cattaraugus and Chautauqua, but shall not affect any action, proceeding or application pending at the time of its passage, nor any action that shall be begun, proceedings taken, or application duly made within six months thereafter, for the purpose of vacating any tax sale, or any conveyance, or certificate of sale made thereunder.

“All applications heretofore, or hereafter made to the comptroller, for the cancellation of any tax sale, by any person interested in the event thereof, shall be heard and determined by him and his-determination shall be subject to review by certiorari or otherwise.”

The whole question upon this branch of the case is as to the effect to be given to the words “ interested in the event thereof,"' in the above quoted section.

If on the other hand these words only related to the event of the assessment and sale, without reference to the title to be affected by it, then within the case of Wright v, Chapin, supra, the only persons interested must be held to be the purchaser, the town, and the state through the comptroller, and the original owner would still be within the disabilities indicated by that case.

But was the original owner of the land sold under a tax sale interested in the event, either of the sale or of the proceeding to set aside or cancel the sale ? I think he was, and as this language under discussion was not in the Laws of 1855, which are amended by the Laws of 1891, I think it may be fairly inferred that the legislative intent in the enactment of this amendment was to allow the original owner, as a person interested in the event, to apply for the cancellation of a tax sale of his lands. Clearly the event of a sale and conveyance of the title of the original owner of land would affect his interest

His title would be clouded by an apparent government sale, and while it might not be such a cloud as could be removed by action if any defect could be found in the proceedings when the purchaser sought to enforce his title, yet the owner could not be said to be other than interested in the event.

If we are right in this conclusion, then the original owner had a right to apply under chap. 217 of the Laws of 1891, for a cancellation of this sale, unless the rights of such owner were barred, or in some way waived or lost

This view is strengthened from the fact that we are asked in this proceeding to review by certiorari, given by the same chapter and section, the acts of the comptroller.

As the comptroller assumed to cancel this tax sale under the provisions of chap. 217 of the Laws of 1891, it is clear that he regarded the law under which he acted in his order of June 23, 1888, as changed by its provisions.

There is great force in the contention of the learned counsel for relator, that in this proceeding the purchaser of the land under the tax sale is divested of his title, against his will, without a day in court, and is thus deprived of his opportunity of defending his title.

But in purchasing under a tax sale, he takes the qualified title subject to the power of the comptroller to cancel such sale on his ascertaining that the tax for which the sale was made was invalid, or illegally, or improperly, imposed or had been duly paid. It seems to follow, therefore, that the title of the relator, acquired under this special statutory proceeding in derogation of the common law, by which the owner is sought to be divested of his title, is, by the very statute by which the authority to sell lands for unpaid taxes, by the comptroller, subject to be defeated by the comptroller, under whose authority it was made,

This is in the nature of a demurrer to the sufficiency of the legal proof before the comptroller to uphold this order as matter of law; and while the court on certiorari will not pass upon disputed questions of fact, it will look into the return, to see if the final conclusion of the officer, or tribunal, whose decision is under review, is justified by the proofs. People v. Board of Police, 39 N.Y., 506 ; People v. Board of Assessors of Albany, 40 id., 154; People v. Eddy, 57 Barb., 593

As disputed questions of fact cannot be litigated in this proceeding, we are only required to look through the record to ascertain whether there is any evidence before the comptroller from which the conclusion can be reached that these tax sales were illegal, and void, for want of jurisdiction in the person or persons by whom the tax was assessed and levied by the board of supervisors of Hamilton county against these lands.

It is objected that there was not sufficient evidence before the comptroller, when he cancelled the sales of 1877 and 1881, that the lands were at the time of the assessment owned by the Adirondack Railway Company, and were exempt from taxation.

If we are to take the certified searches of title presented to, and filed with the comptroller on the application of the Adirondack R. R. Co. for the cancellation of these sales as competent evidence to be considered by him on that application, his conclusion that that corporation had title to these lands is fully sustained. But it is insisted by the relator that there is no statute making such certified searches evidence in these proceedings, and hence that they were not competent evidence of the facts which they contain, and that the comptroller could act only upon the conveyances themselves, and that as they are not returned the return contains no legal evidence of the title in the Railway Co.

The practice of receiving proof by affidavit by the comptroller in proceedings of the character which would not be competent in a common-law action, seems to have obtained in proceedings of this character, and have received judicial sanction.

In the People ex rel Ostrander, 105 N. Y., 309 , 7 St. Rep., 209 , which was a proceeding before the comptroller to cancel a tax sale, the comptroller declined to act upon proof by affidavit and the court of appeals upheld a mandamus to compel the comptroller to act upon such proof.

In the case at bar the correctness of the abstracts of the deed and records referred to in the return were verified by the clerk, in whose custody they were found, and were also verified by the affidavit of Joseph M. Lawson. It is true that this affidavit as

It is quite true that this kind of proof would not be competent in an action of ejectment between the relator and the railway company. Handley v. Greene, 15 Barb., 601 ; Baker v. Kingsland, 10 Paige, 366; Lansing v. Russell, 3 Barb. Ch., 325 . But, as we have seen, the courts have sanctioned a different rule of evidence in this class of cases.

But, it is further urged by the relator that there is no evidence before the comptroller that the road was completed as required by chap. 236 of the Laws of 1863, so as to give its land immunity from taxation.

Upon this subject the comptroller, it appears, relied upon the state engineer’s report of railroads for 1878, upon the faith of which the United States bonds deposited with the comptroller had been surrendered.

It is true that the engineer’s report is not set out in haec verba, but the year, volume, and page being given, I think that a sufficient compliance with the requirements of the writ as to the return of evidence upon which he acted in making the order. Again, the comptroller refers to the opinion of the attorney-general upon that subject, in which that officer officially advises the comptroller, in answer to a question, as follows: “I think the evidence is sufficient and satisfactory.”

'As it had been officially determined by the attorney-general and a former comptroller that the act had been complied with by the railway company so as to exempt it from taxation, it would seem that the comptroller in making the order of cancellation in this case could have relied upon such official acts.

If then the comptroller was right in assuming from the evidence that the railway company had immunity from taxation under the act of 1863, and the various amendatory acts thereto, then it must follow that the board of supervisors had not power to levy a tax upon or against such lands, and their acts in doing so were cor am, nsnjudice and void. It was also established by proof, before the comptroller, that the tax on which the sale of 1885 was made was not extended by, or under, the direction of the board of supervisors, but by each individual supervisor after the final adjournment of the board. Such an act would be clearly unauthorized and would be a clear violation of duty for which the tax would be void.

But it is also insisted 'by relator that the proceedings were clearly barred, and every error, omission and defect in these tax sales were clearly cured by the provisions of chap. 445 of Laws of 1885.

By that act the comptroller’s certificate, in four years after its

But the view we take of this proceeding does not make it material for us to consider whether this order was made as the renewal of a motion which had been denied in 1888, or is regarded as an original application.

The defects in the tax sale in this case, for which the comptroller set it aside, related to the jurisdiction of the supervisors to impose a tax upon lands exempt from taxation by statute from 1867 to 1882 inclusive, and the failure of the supervisors to extend the tax during the same time and that by reason thereof the supervisors, and taxing officers, never had jurisdiction to impose the tax.

The sale was, therefore, void for want of jurisdiction, and did not, therefore, come within the limitation prescribed by chapter 448 of the Laws of 1885. In Ensign v. Barse, 107 N. Y., 329 ; 12 St. Rep., 39 , the court in this class of proceedings recognize a distinction between a case of mere irregularity, and one of want of jurisdiction. The irregularity is cured by the lapse of time, and the title vests in the purchaser after the period fixed by the statute.

But in case of absolute want of jurisdiction, the rights of the owner by a void sale are not disturbed, and this doctrine would seem to be elementary. In Cromwell v. MacLean, 123 N.Y., 474 ; 34 St. Rep., 85 , Peckham, J., says: “ If the proceedings of the taxing power have been so fatally defective, on account of a failure to comply with the requirements of the statute, that no title to the property of the tax-payer has passed to the purchaser at the tax sale, I do not think there is any correct principle upon which can be based the claim that the tax-payer, nevertheless, holds his property, from that time on, at the mercy of the legislature, or subject to its power to validate and give life and effect to the otherwise void sale.” The case of Joslyn v. Rockwell 128 N. Y., 334 ; 40 St. Rep., 274 , is substantially to the same effect

We are, therefore, of the opinion that the order of the comptroller must be confirmed, and the writ of certiorari quashed, with fifty dollars costs and printing disbursements to the defendants.

Putnam and Herrick, JJ., concur.