Adair Holdings, LLC v. Johnson
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The Supreme Court affirmed the decision of the district court determining that a tax deed obtained by Adair Holdings, LLC was void for incorrect notice and granting the counterclaim for quiet title filed by Dennis G. Johnson, the owner of record, holding that summary judgment in favor of Johnson's counterclaim was proper and that equity did not require relief to be granted to Adair Holdings.
Adair Holdings' predecessor in interest attempted to provide Johnson with notice of the application for a tax deed via certified mail and then by publication. The notice, however, contained incorrect information about the timeframe in which Johnson could redeem the property. The district court granted summary judgment in favor of Johnson and did not order Johnson to reimburse Adair Holdings for the delinquent taxes paid by Adair Holdings' predecessor in interest. The Supreme Court affirmed, holding (1) the district court correctly determined as a matter of law that the tax deed issued to Adair Management was void; (2) the district court did not err in granting summary judgment for Johnson on his quiet title claim; and (3) because Adair Holdings did not raise below the issue of recovery for payment of delinquent taxes, equity did not require that relief be granted.
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