 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Mariah Investments9/22/1999
En Banc
Argued and submitted May 13, 1998; resubmitted en banc April 14, 1999.
Affirmed by an equally divided court.
Wollheim, J., Concurring.
Landau, J., Dissenting
WOLLHEIM J., Concurring.
At issue in these consolidated cases is the ownership of a residence in Portland. Plaintiff Tina Wright sold the property to defendant Douglas McCabe for a purchase price of $5,000. Wright, however, contends that she was mistaken as to the existence of property taxes owed on the property, as well as to the value and condition of the property. Wright seeks to rescind her sale to McCabe. Before that transaction, plaintiff Mariah Investments, Ltd. (Mariah) had investigated the property and discovered that Wright and her predecessor in title had not paid taxes on it for many years. Mariah, concluding that Wright essentially had abandoned the property, paid the back taxes. When Mariah learned of Wright's sale to McCabe, it initiated an action to establish an equitable lien in the amount of the back taxes paid (CA A95435). At the same time, Mariah entered into an agreement with Wright to finance an action for rescission of the sale to McCabe in exchange for cash and transfer of title to the property to Mariah. Wright then initiated a separate action for rescission (CA A95437). The trial court held in favor of Wright and ordered the sale to McCabe rescinded. In light of the agreement between Mariah and Wright, the trial court held that Mariah's claim for an equitable lien was moot. McCabe appeals. I would affirm.
The disputed property is a residence located on two lots in Portland. Jessie Lynch, Wright's mother, originally owned the property, although she and Wright lived in Anchorage, Alaska. In 1986, Lynch transferred the property to Wright. Wright, however, did not take an active role in taking care of the property. Lynch continued to manage it and from time to time arranged for family members to live there rent free. Lynch could not afford to pay taxes on the property and, since 1986, she paid none. Lynch did not keep Wright apprised as to the property's condition or value, although periodically she would tell Wright about needed repairs or about taxes that needed to be paid to avoid foreclosure.
In 1991, Wright became unemployed and began drawing public assistance. In 1992, she received a personal injury settlement and applied $2,000 of it to the back taxes on the property, leaving a balance of $7,000 still owing. For the next three years, however, neither Wright nor Lynch made any tax payments on the property; both believed they had lost the house to tax foreclosure at least a year before the 1995 conveyance to McCabe.
In 1994, Mariah became interested in the property. Mariah specializes in the purchase and development of distressed property and had discovered that $20,000 in back taxes had accrued on Wright's property. Mariah, however, could not locate Wright, whose Alaska address was not included in the property records. Multnomah County had foreclosed Wright's property, and Wright's statutory right of redemption had expired. However, on inquiry with the county, Mariah took advantage of an extended period of redemption to restore title in Wright by paying the back taxes on or about December 30, 1994.
At approximately the same time, McCabe also became interested in the property. He is a business person with two college degrees. McCabe, too, specializes in the purchase and development of distressed properties and, in 1995, had been in the real estate business for ten years. Mariah approached McCabe with a proposal to form a partnership to establish an equitable mortgage or receivership. McCabe
Page 1 2 3 4 5 6 7 8 9 10 11 12 13 Oregon Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|