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Bank of Commerce v. Waukesha County

Citations: 279 N.W.2d 237; 89 Wis. 2d 715; 1979 Wisc. LEXIS 2053Docket: 76-636

Court: Wisconsin Supreme Court; May 30, 1979; Wisconsin; State Supreme Court

Narrative Opinion Summary

This case involves a dispute over the ownership of a 7½ acre parcel of land in Waukesha County, with the Bank of Commerce and Ginkids Investment, Inc. both asserting former ownership rights under a local ordinance and Wis. Stats. sec. 75.35(3). The Bank of Commerce, having acquired a mortgage interest in the property in 1967, initiated a quiet title action after a tax deed was issued to Ginkids. The Bank argued it was the 'former owner' entitled to repurchase the tax-deeded land. However, the court ruled that the Bank did not hold title on the critical date of May 31, 1974, when the redemption period ended and the former owner lost title due to tax delinquency. Instead, the court found that Ginkids held record title on that date, making them the 'former owner' eligible for repurchase preferences under the statute. The Bank's failure to redeem the property before the redemption period expired meant they only held a lien rather than legal title. Consequently, the court reversed the trial court's decision, affirming Ginkids' right to reacquire the property, despite acknowledging potential inequities in the statutory interpretation. The case was remanded for further proceedings, and a motion for reconsideration was subsequently denied.

Legal Issues Addressed

Effect of Tax Delinquency on Property Ownership

Application: The former owner lost title due to the county's tax enforcement actions because the property was not redeemed by the end of the redemption period.

Reasoning: As of May 31, 1974, the former owner lost title due to the county's tax enforcement actions.

Former Owner's Right to Repurchase under Wisconsin Statutes

Application: The court determined that Ginkids was entitled to the preference afforded to former owners under Wis. Stats. sec. 75.35(3), allowing them to reacquire the property.

Reasoning: Consequently, Ginkids is entitled to the preference afforded to former owners by this statute and local ordinance, allowing them to reacquire the property.

Judicial Interpretation of Statutory Provisions

Application: The court emphasized that it cannot alter statutory provisions to mitigate perceived injustices, adhering strictly to the statutes despite concerns about equity.

Reasoning: The court acknowledges that a strict interpretation of the statutes yields this outcome, despite concerns about the inequity of allowing a group of investors to reclaim property free of mortgage liens after foreclosure.

Quiet Title Action under Wisconsin Law

Application: The Bank of Commerce sought to quiet title to an undeveloped parcel of land, asserting its status as the 'former owner' under a local ordinance aligned with Wis. Stats. sec. 75.35(3).

Reasoning: The case involves the Bank of Commerce (plaintiff-respondent) seeking to quiet title to a 7½ acre undeveloped parcel in New Berlin, Waukesha County, asserting its status as the 'former owner' under a local ordinance aligned with Wis. Stats. sec. 75.35(3).

Transfer of Title in Mortgage Foreclosure Sales

Application: The court found that the Bank did not gain title to the property until the judicial confirmation of the sheriff's sale, meaning it only held a lien before this confirmation.

Reasoning: In this case, the Bank did not gain title to the property until June 3, 1974, following the judicial confirmation of the sheriff's sale.