Nadon v. City of Los Angeles

Opinion

KINGSLEY, Acting P. J.

Defendants City of Los Angeles and its treasurer appeal from a judgment awarding damages for loss of property in a sale foreclosing an improvement bond. We reverse the judgment.

In 1967 plaintiffs became the owners of a tract of land located in the City of Los Angeles and duly recorded their deeds on December 4, 1967. They paid one installment of taxes for the year 1967-1968, but otherwise did not pay property taxes. In 1970, pursuant to a demand from the holder of a bond issued for an assessment made on the property under the Improvement Act of 1911, the treasurer issued a notice of foreclosure, addressed to the owners as shown on the assessment rolls of the county tax assessor, at the addresses shown on such rolls. Those rolls did not reflect that the owners there shown were not the plaintiffs. The treasurer did not search the records in the recorder’s office and had no notice of plaintiffs’ actual ownership. No notices were ever served on plaintiffs. Thereafter, the usual course of foreclosure and sale took

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place, resulting in the ultimate issuance, on November 26, 1971, of a treasurer’s deed to Arthur E. Wennstrom, who duly recorded that deed on December 1, 1971.

On May 10, 1972, plaintiffs filed a claim for damages with the city; that claim was rejected on July 11, 1972. The present action was filed on January 11, 1973.

Originally the complaint sought relief against both the city and its treasurer and against Wennstrom. After a demurrer by Wennstrom was sustained with leave to amend, plaintiffs failed to amend and the action has been dismissed as against Wennstrom. Demurrers by the city and the treasurer were overruled and plaintiffs have recovered judgment against those defendants for the stipulated value of the property. We reverse that judgment.

On this appeal, defendants urge: (1) that the action was barred by the statute of limitations contained in section 6571 of the Streets and Highways Code as it stood at the times herein involved; (2) that the treasurer was under no duty to give notice to anyone other than the owner appearing on the tax rolls; (3) that, in any event, the foreclosure and deed were valid; (4) that, in any event, the city and the treasurer are immune from liability for their acts; and (5) that plaintiffs’ sole remedy was an action against Wennstrom to quiet title.