The
SD Supreme Court handed down one decision this morning, holding inter alia:
- Tax deed upheld by 3/2 vote
BIALOTA
v. LAKOTA LAKES, LLC, 2023 S.D. 55:
Plaintiff filed this quiet title action for the purpose of eliminating
the interest of a Prior Owner as a result of her purchase at a tax sale,
offered for sale as a result of failure to pay taxes in Pennington County. Prior Owner is a Minnesota Limited Liability
Company. Various efforts (by the County
and by Plaintiff) to serve the Prior Owner with notice failed. Ultimately, Plaintiff proceeded by serving
the Minnesota Secretary of State as agent for the Prior Owner. In this action, the trial court granted
summary judgment for the Prior Owner, holding that Prior Owner had not been
properly served with “notice of intent to take tax deed.” The SD Supreme Court reversed, upholding title in
Plaintiff as purchaser at the tax sale.
The Court’s decision is 3/2, with majority opinion authored by Chief Justice
Jensen. Justice Kern filed a dissenting
opinion, in which Justice DeVaney concurs.
The dissent’s view is that the tax deed is void
on the basis that Plaintiff did “not establish that she personally served the Notice
on the Minnesota Secretary of State as required by SDCL 10-25-5.”
The majority opinion upholds service by mail
to the Minnesota Secretary of State, stating in note 4, “SDCL
15-6-4(d) does not define the method of delivery required to accomplish
service. In fact, the service rules contemplate that delivery may take place by
mail when there is an acceptance of service. See SDCL 15-6-4(j).”
This
decision may be accessed at
