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Supreme
Court Rules in Property Takeover Case
By David Stout
New York Times
April 26, 2006
WASHINGTON, April 26 — The
Supreme Court ruled, 5 to 3, today that Arkansas state officials
were wrong to take away the home of a Little Rock man for nonpayment
of real estate taxes.
The majority held, in a
ruling that could affect how other states handle property takeovers,
that the officials did not do enough when they sent certified mail
to 717 North Bryan Street, telling Gary Jones that he was delinquent
in his taxes, and when they published a notice of public sale in The
Arkansas Democrat-Gazette.
As it turned out, there was
no public sale, because no bids were submitted. The state was thus
permitted to negotiate a private sale of the property, and it did,
to one Linda Flowers. The state then sent yet another certified
letter to 717 North Bryan, telling Mr. Jones that his property was
about to be sold unless he paid up.
He did not pay, and Ms.
Flowers bought the house in 2002 for just over $21,000, about a
quarter of its fair market value. Mr. Jones learned about the sale
from his daughter, who had learned about it after Ms. Flowers served
an eviction notice.
The problem for Mr. Jones —
and, as it turned out, for the state of Arkansas — was that he had
moved out of the house in 1993, after he and his wife separated, and
apparently never knew that it was about to be sold.
"Mr. Jones should have been
more diligent with respect to his property, no question," Chief
Justice
John G. Roberts Jr. wrote.
"People must pay their taxes, and the government may hold citizens
accountable for tax delinquency. But before forcing a citizen to
satisfy his debt by forfeiting his property, due process requires
the government to provide adequate notice of the impending taking."
Noting that the certified
mail sent to 717 North Bryan had been returned because Mr. Jones was
not there to sign for it, the chief justice wrote, "In response to
the returned form suggesting that Jones had not received notice that
he was about to lose his property, the state did — nothing."
Joining the chief justice
were Justices
John Paul Stevens,
David H. Souter,
Ruth Bader Ginsburg and
Stephen G. Breyer. Their
ruling overturned decisions by the Arkansas Supreme Court and a
lower state court, which had found against Mr. Jones in holding that
the state had met its obligations.
The dissenters were
Justices
Clarence Thomas,
Antonin Scalia and
Anthony M. Kennedy. Their
dissent, written by Justice Thomas, essentially found that Mr. Jones
had created his own problems, and that the state had fulfilled its
duty in trying to notify him before the house was sold.
Judge
Samuel A. Alito Jr. took no
part in the case, Jones v. Flowers, No. 04-1447. He joined the court
after the case was argued.
The majority opinion said
the justices took the case to resolve a conflict among the federal
circuit courts and state supreme courts on whether the Fourteenth
Amendment's due-process clause requires the government to take
additional reasonable steps to notify a property when notice of a
tax sale is returned undelivered.
In this case, at least, the
answer is "yes," the majority declared, citing the peculiarities of
Mr. Jones's situation.
He bought the house in
1967. His mortgage company paid the taxes each month, until 1997,
when the mortgage was paid off. In April 2000, state officials
attempted to notify Mr. Jones by certified mail of the delinquency.
But no one was at home to sign for the mail, nor did anyone claim it
at the post office within 15 days. The same thing happened two years
later, when the sale was imminent.
The state could have tried
to notify Mr. Jones by regular mail, or by posting a notice on the
house, the majority held today.
"There is no reason to
suppose that the state will ever be less than fully zealous in its
efforts to secure the tax revenue it needs," Chief Justice Roberts
wrote. "The same cannot be said for the state's efforts to ensure
that its citizens receive property notice before the state takes
action against them."
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