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Tax deeds are a heavily litigated area of law in Florida, with important due process implications.  The following is a brief summary of a few Florida statutes and case law generally applicable to the narrow issue of notice requirement of the issuance of a tax deed to those with an interest in the property and the effect of the issuance of a tax deed on inferior liens.

Notice:  (1) The County Tax Collector identifies persons entitled to notice and (2) the Clerk of Court sends notice to those persons by certified mail return receipt requested.

Tax Deeds

Fla. Stat. § 197.552:

• Issuance of tax deed wipes out all inferior liens.
• Deed is prima facie evidence of the regularity of all proceedings from the valuation of land to the issuance of the deed.

Fla. Stat. § 197.502(4):

• Requires notice to lienholder prior to tax sale if the recorded lien contains the address of the lienholder.

Fla. Stat. § 197.522:

• (1)(a): Requires clerk to provide notice by certified mail with return receipt requested to the persons listed in the tax collector’s statement, if the statement contains their address, that an application for a tax deed has been made.
• (d): “The failure of anyone to receive notice as provided herein shall not affect the validity of the tax deed issued pursuant to the notice.”

Case law:

Jones v. Flowers, 547 U.S. 220 (2006) – US Supreme Court held: (1) When mailed notice of tax sale is returned unclaimed, state, as a matter of due process, must take additional reasonable steps to attempt to provide notice to property owner before selling property if practicable to do so; and (2) steps which state took after being alerted to fact that notice had not been delivered, in proceeding with sale after simply publishing notice in newspaper a few weeks prior thereto, without ever posting notice at address to which notice was sent or taking other measures reasonably available to alert taxpayer of sale, were insufficient to satisfy taxpayer’s 14^th Amendment due process rights.

Further stating:

• Before state may take property and sell it for unpaid taxes, the 14^th Amendment requires government to provide owner with notice and opportunity for hearing.
• Due process does not require that property owner receive actual notice before government may take his property; rather, due process requires only that government provide notice reasonably calculated, under all the circumstances, to apprise interested parties of pendency of action and afford them an opportunity to present their objections.
• When notice is required as matter of due process, means employed to provide that notice must be such as one desirous of actually informing the absentee might reasonably adopt to accomplish it.

Vosilla v. Rosado, 944 So.2d 289 (Fla. 2006) – Florida Supreme Court holding and rationale in line with case above (this case cites the case above).

Also stating:

• 197.522(1) meets constitutional due process requirements by mandating notice reasonably calculated to apprise landowners of pending deprivation of their property.
• The failure of anyone to receive notice as provided in § 197.522(1) does not affect the validity of the tax deed as long as the clerk complies with the notice requirements of subsection (1).

Based on the above, it seems the standard is that sending the notice as stated in the statute is sufficient for due process requirements regardless of actual notice unless the clerk knows or should know that the intended party did not receive the notice.  Then the clerk would be required to take additional steps.  If you are presented with a tax deed issue on property you own or on which you have a lien, you should consult a real estate litigation attorney to assist in protecting your rights.

The summary above is intended for general informational purposes only.  It is not legal advice.  It is also not nor is it intended to be a comprehensive analysis of tax deeds generally or of the narrow issues identified.

Happy New Year!  While most people are busy making resolutions to lose weight or eat healthier, it’s not a bad idea for businesses to do the same and make resolutions, i.e. new goals that can help springboard you to the next level of success.  January is the perfect time to review past goals and hit the reset button on practices that aren’t working so well.

Instead of shedding pounds, it’s time to shed stale business practices and start some fresh ones to keep you competitive in 2016:

–Who are your top three demographics?  This is vital information every business should know and constantly reevaluate.  “Customers are fickle, they change their minds based on the many inputs in their cluttered worlds.  A recent study conducted by LIM College students and in conjunction with the National Retail Federation Student Association (NRFSA) showed that 68% of the hot 18-25 year old market would rather shop in a bricks and mortar store than they would on-line.  Surprised?” said Marc Compeau in a recent Forbes article.  Identifying your top customers and using this information wisely is key to staying competitive.

-Branding is everything.  As Bloomberg writer Steve McKee points out, “Too many business leaders believe branding is a discipline that lives in the marketing department.”  But make no mistake; branding is the whole package— from the company logo to how you handle customer complaints.  Maybe a more fitting word would be reputation.  “It’s not like mathematics, engineering, or accounting, in which there are rules to be followed or regulations to be adhered to, but there are a significant number of commonsense, sometimes-counterintuitive truths based on how real humans interact in the real world that can make a significant impact on any business,” said McKee.

-Create a disaster plan.  “No matter how good you are as a businessperson and manager, there will always be circumstances beyond your control that can affect your business,” said WSJ reporter Colleen DeBaise.  From natural disasters to a closed vendor— unforeseen events can happen anytime and when you least expect it.  Have a contingency plan that your business will follow to help ease the impact of such events.  Having critical data backed up and kept offsite will ensure your valuable information is safe.  Have backup vendors in the queue in case your primary vendor shuts down either temporarily or long-term.  Check the U.S. Small Business Administration (SBA) for more templates and guides on how to deal with emergencies.

-Consider using paid social media advertising.  Thanks to Facebook and Twitter completely revamping the way they handle and display paid sponsors, it is actually paying to advertise via these mediums.  According to MarketMeSuite, Facebook looked at 60 different campaigns that used their advertising and found that 70% of the 60 campaigns had a 3-times or better return-on-investment (ROI) and 50% showed 5-times the ROI.

-Legal Structure and Agreements.  Be sure that your business and personal assets are protected.  At Arguello & Associates, PLLC we routinely handle a wide variety of business-related transactions and dispute resolutions.  We counsel individuals and entities in the formation, operation, and termination of a business, whether a corporation, partnership, or limited liability company.  We handle all aspects of business law and business litigation, including breaches of operating agreements, shareholder agreements, and other breach of contract related issues. We offer a free initial consultation and are available to answer your questions regarding any of your business related legal needs.

Arguello & Associates, PLLC would like to work with you to make your business ideas a reality in 2016.

From all of us at Arguello & Associates, PLLC we wish you a Happy New Year filled with much success!