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Date: 03-03-1999
Case Style: Charles Fitzgerald v. City of Bangor
Case Number: Unknown
Judge: Delahanty
Court: Superior Court, Penobscot County, Maine
Plaintiff's Attorney: George Z. Singal and James R. Whorley of Gross, Minsky, Mogul & Singal, P.A., Bangor, Maine
Defendant's Attorney: Erik M. Stumpfel, City Solicitor, Bangor, Maine
Description: Estoppel - Taxes - Eminent Domain - In 1994, Charles Fitzgerald owned two properties in Bangor that were subject to first mortgage held by Bruce Slovin. Because Fitzgerald had failed to pay property taxes on both buildings for several years, the City had placed tax liens on each property. At issue in this matter are the liens for the tax year 1993. Fitzgerald does not dispute the City's process in placing liens on the property.
The 18-month period of redemption on the 1993 liens was to expire as to both properties on December 7, 1994. To prevent automatic foreclosure of the liens, Fitzgerald was required to pay $7,996.63 on the first property and $21,102.01 on the second property. Unbeknown to Fitzgerald, Slovin paid the full amount due on the Dakin's Building midway through the afternoon of December 7, 1994. Fitzgerald arriving later in the day was told by the clerk (incorrectly) that the $7,996.63 was still due on the Dakin's building and a double payment occurred. This extra amount was credited, as required by statute, this be applied to any other outstanding balance on that property. Fitzgerald alleges had he known the actual status of both accounts he would have paid on the second building to prevent it from foreclosure, but because of the clerk's error and his limited resources from paying both that he chose to pay the lower account. Because no payment was made on the Freese's Building, Fitzgerald right to redeem the property expired by statute, and the City's tax lien was deemed to have been foreclosed. The present case was commenced when Bruce Slovin brought an action against Fitzgerald and the City of Bangor seeking to foreclose his mortgage and requesting the Superior Court to determine the priorities of the parties holding interests in the property.Outcome: Slovin and Fitzsgerald entered into a settlement, and the court denied the City's motion for summary judgment. The City then began administrative proceedings to use its eminent domain power to acquire the Freese's Building. Fitzgerlad responded by filing an action challenging the exercise of eminent domain power by the City, and that action was consolidate with the foreclosure action originally filed by Slovin. The City filed a motion in limine which was granted by the court and effectively foreclosed any defense Fitzgerald may have offered to the City's claim of title and resulted in judgment for the City.
Plaintiff's Experts: Unknown
Defendant's Experts: Unknown
Comments: Affirmed by the Supreme Judicial Court of Maine. See: 726 A.2d 1253 (Me. 1999). The above date reflects the appellate date, not the original trial date. Rported by kkm.