Polonsky v. Town of BedfordAnnotate this Case
Plaintiff Richard Polonsky appealed, and defendant Town of Bedford (Town) cross-appealed a superior court order on the parties’ cross-motions for summary judgment as to plaintiff’s petition for injunctive and declaratory relief and to quiet title to residential property that the Town acquired by tax deed in 2011. In 2008, plaintiff inherited residential property in Bedford New Hampshire that, at that time, was assessed at approximately $300,000. Because plaintiff failed to pay his real estate taxes in 2008, 2009, and 2010, tax liens were imposed on his property for each of those years. The Town notified plaintiff before each lien was imposed. In April 2011, the Town notified plaintiff that a tax deed was to be issued. In May 2011, a tax deed for the property was issued to the Town. Plaintiff continued to reside on the property without paying taxes. In 2013, plaintiff offered to pay back taxes, but requested the Town forgive additional charges. In July 2013, the Town rejected plaintiff’s request and decided to sell the property. In December 2013, the Town notified plaintiff of its decision to sell the property and of his right to repurchase it. Plaintiff received that notice, but did not act on it. In April 2015, the Town again notified plaintiff of its intent to sell the property and of his right to repurchase. Plaintiff proposed he purchase the property for only the amount he owed in taxes and that the Town waive the remaining amounts. The Town rejected the plaintiff’s proposal. The Town then asserted that plaintiff’s right to repurchase the property had terminated because more than three years had passed since the tax deed had been recorded. Shortly thereafter, plaintiff brought this lawsuit. On appeal, plaintiff argued the trial court erred in ruling that the Town’s failure to provide timely statutory notice to him of its July 2013 “offering for sale,” as required by RSA 80:89, I (2012), did not invalidate the tax deed. Plaintiff also argued the trial court erred by failing to find that the penalty the Town may recover pursuant to RSA 80:90, I(f) (2012) (amended 2016) constituted “double taxation” in violation of the State Constitution. In its cross-appeal, the Town argued the trial court misinterpreted the three-year period set forth in RSA 80:89, VII (2012) when it determined that, although the tax deed was recorded more than three years ago, plaintiff could bring a claim for any amount the Town recovered from the property’s eventual sale in excess of the outstanding taxes, interest, costs, and statutory penalty owed (“excess proceeds”). The New Hampshire Supreme Court affirmed the trial court’s ruling rejecting the plaintiff’s claim that the tax deed was invalid, reversed its ruling construing the statutes as permitting plaintiff to recover excess proceeds from any future sale of the property, and remanded for further proceedings.