People Ex Rel. Department of Public Works v. Fink

FILES, J.

The question presented is whether the grantee under a tax deed executed after the state had commenced construction of a highway on the subject property is entitled to compensation in the eminent domain proceeding.

The chronology is as follows: On November 17, 1953, Quality Radio, Inc., acquired title to the subject property. Property taxes for the years 1953 and 1954 were unpaid. On May 24, 1956, Quality Radio was adjudicated a bankrupt. On November 20, 1958, the State Highway Commission adopted a resolution determining that the public interest required the acquisition of the subject property for state highway purposes. On January 12,1959, this proceeding was commenced to condemn the property. On May 11, 1960, the court made an order for possession, following which the Department of Public Works took possession and commenced construction on June 15,1960.

On February 20, 1961, the Tax Collector of Los Angeles County deeded the subject property to appellant, presumably as a result of a sale at public auction under Revenue and Taxation Code, section 3691, by reason of the nonpayment of the 1953 and 1954 taxes.

In this eminent domain proceeding neither Quality Radio nor its trustee in bankruptcy appeared. Appellant filed an answer alleging ownership under his tax deed. Los Angeles County, the State Board of Equalization and the State Department of Employment appeared, claiming liens. After a trial the court found that the property had been devoted to a public use prior to the date of appellant’s deed, and made an

[21]

interlocutory judgment declaring that appellant had no interest in the property and was not entitled to participate in any compensation awarded for the taking. In a subsequent trial the court determined the value of the property and the amounts payable to the three lien claimants, which amounts aggregated more than the value of the property. The final judgment apportioned the amount awarded as between the county, the Department of Employment and the Board of Equalization. Appellant has appealed from the judgment.

It is well settled that when a public body has acquired property for public use, a tax deed issued thereafter is void. In