Lieb v. Day

BARNARD, P. J. This is an appeal from a judgment declaring that a purported bill of sale issued by the tax collector of Orange County is void, and quieting title to certain property in the defendants.

On July 13, 1946, the Days executed a lease to Robert Tanguay giving him the right to explore for and develop oil and gas on certain real property. Taxes on the leasehold [377]interest of Tanguay were assessed to him in March, 1949, and were placed on the secured roll. On November 10, 1949, shortly after these taxes became due, Tanguay quitclaimed his interest in the property back to the lessors. These taxes became delinquent on December 10, 1949. On April 8, 1952, the tax collector posted notice of sale, describing this leasehold interest, for nonpayment of the taxes assessed for 1949-1950. On April 16, 1952, the tax collector sold this leasehold interest to M. M. Prescott, and issued a bill of sale to him which was recorded the next day. On November 10, 1953, Prescott conveyed whatever interest he had in the property to the plaintiff Lieb by grant deed, which was recorded on November 12, 1953.

On November 27, 1953, Lieb brought this action seeking to quiet his title to this leasehold interest as against the defendants. The defendants answered and filed a cross-complaint seeking to quiet their title to the real property described in the original lease. The court found that title to the real property in question is vested in the defendants Day as the owners in fee; that the plaintiff claimed ownership of a leasehold estate in this property under assignment from Prescott ; that the purported bill of sale issued by the tax collector to Prescott and recorded on April 17, 1952, is void; and that the plaintiff has no right, title or interest whatsoever in, to or under this real property nor any leasehold interest in said property or any part thereof. Judgment was entered decreeing that the purported bill of sale issued by the' tax collector to Prescott is void, and quieting title to this real property in the cross-complainants. This appeal followed.

All statutory references herein are to the Revenue and Taxation Code. Section 107, after defining “possessory interests” (which would otherwise include an oil and gas lease), provides as an exception that leasehold estates for the production of gas and oil are sufficient security for the payment of taxes levied thereon, and that such leasehold estates shall not be classified as possessory interests but shall be. placed on the secured roll. It then provides: