Munden v. Hayes

BARNARD, P. J. The plaintiffs brought this action to quiet title to a lot in Anaheim which they had purchased from A. W. Young in April, 1944, without any escrow or title report. Young had bought the lot for $75 from the city of Anaheim on August 31, 1943. The city acquired title through a tax deed issued by its tax collector on July 2, 1934, and also through a tax deed issued by the county tax collector on August 2, 1940.

The defendant Haskins was the owner of a street improvement bond issued as a lien on this lot on January 2, 1927, by the city treasurer under the provisions of the Improvement Act of 1911 [Stats. 1911, p. 730; 2 Deering’s Gen. Laws, 1937, Act 8199]. The last instalment on this bond became due on June 2,1937. No action had been taken to foreclose this bond, either in court or through sale by the city treasurer. Haskins [774]filed an answer in this action denying the allegations of the complaint. Also, as a separate defense and for affirmative relief, he alleged ownership of this bond and asked that the respective interests of all parties be determined; that the property be partitioned and ordered sold; and that the proceeds be applied to the valid liens or claims of the parties as determined by the court.

The court found the general facts as above stated; that the plaintiffs owned the property subject to the lien of Haskin’s bond; that the amount due and unpaid on said bond is $1,891.79; that the lot could not be physically partitioned without great damage and prejudice to the owners; that the plaintiffs have an equitable lien upon the property for $75; that Haskins has an equitable lien for $1,891.79; that said equitable liens are on a parity; that Haskins was entitled to a partition; and that the lot should be sold by a single referee, the parties having stipulated that a single referee might be appointed. Judgment was entered accordingly and a referee was appointed with directions to sell the property. It was ordered that the proceeds, after payment of the costs, should be applied in discharge of these two equitable liens, or if not sufficient for that purpose should be applied to them proportionately ; and that the balance, if any, should be paid to the plaintiffs. From this judgment the plaintiffs have appealed.

Appellants’ main contentions are that the lien of this improvement bond and any rights of the holder thereof are barred; that the holder of such a bond could not, legally, assert his right to a lien when foreclosure had not been commenced within the time allowed therefor; that in the absence of foreclosure proceedings and where four years had expired since the due date of the last instalment of the bond, liens under the Improvement Act of 1911 expired on January 1, 1947; and that the lien of this bond, being barred by the limitation imposed in the act, is not on a parity with the title acquired by an innocent purchaser from a person who acquired title under a tax deed.