Newman v. Blake & Knowles Steam Pump Works

Taxation; Condemned Land. The deduction from the amount awarded for land taken for public improvements, of the amount of taxes for years following the confirmation of the award and the appropriation to pay it, assessed following the compromise of litigation between the original owner and his mortgagee as to their rights in the award, cannot be upheld upon the theory that title did not pass until the award was paid, where, although the public authorities asked for an order in the proceedings between the mortgagor arid mortgagee directing the payment of the award into court, they made no, fender, and where they had possession and use of the land during the years for which the taxes in question were assessed.

Hearing on an appeal by tbe defendants from a decree of tbe Supreme Court of the District of Columbia directing them to pay to plaintiff the amount of taxes retained out of an award for land taken for public improvement. The Court in the opinion stated the facts as follows: This suit had its origin in a. proceeding begun by the then District commissioners, on May 7, 1907, to condemn part of a ■tract of land owned by Chapin Brown; the whole subject to a mortgage to secure a note held by the Blake & Knowles Steam Pump Works, a corporation, amounting to $18,642.19. Brown was made a party to the proceeding. The mortgagee by arrangement with Brown failed to become a party. An award was made October 2, 1907, assessing the value of the-land taken at $13,881.50. This award was confirmed by the proper court. Congress appropriated the money to pay the award. Brown repudiated the mortgage and claimed the entire amount of the award. On a bill filed by the mortgagee against Brown and the commissioners the court gave an opinion in favor of the mortgagee. Before the decree was entered Brown and the mortgagee inquired of the corporation counsel if there were any unpaid taxes on the land. He, learning by inquiry of the tax office, that no taxes had been assessed, reported the fact to the other parties, who thereupon compromised their demands; the mortgagee to have decree for the award, and releasing the remainder of .the mortgaged land of Brown. A decree was entered to that effect and also reciting that no taxes were assessed against the land. On the next day, upon motion of the commissioners, the former decree was modified striking therefrom the cancelation of taxes, directing the payment of the award to plaintiff upon plaintiff securing any unpaid taxes, and opening the question of taxes for further hearing, The assessor of taxes immediately assessed the land for the years 1911, 1912, and part of 1913. The amount thereof--$407 — was retained out of the award, and the remainder paid to plaintiff. The final decree ordered the payment of said sum of $407 to the plaintiff.