LLC v. City of Poughkeepsie, et al., appellants. (2026)

Argued—January 22, 2026

DECISION & ORDER

G/

In an action, inter alia, to set aside a tax lien sale and a tax deed dated January 26, 2021, the defendant City of Poughkeepsie and the defendants Lent 51, LLC, and Bonita West, LLC, separately appeal from (1) an order of the Supreme Court, Dutchess County (Michael G. Hayes, J.), dated December 23, 2022, and (2) a judgment of the same court dated March 23, 2023.  The order, insofar as appealed from, in effect, granted the plaintiff's motion for summary judgment on the second and third causes of action and declaring that the plaintiff is the sole and lawful owner of the subject property and denied those branches of the defendants' cross-motion which were for summary judgment dismissing the second and third causes of action and, in effect, declaring that the plaintiff is not the sole and lawful owner of the subject property.  The judgment, insofar as appealed from, upon the order, set aside the tax lien sale and the tax deed dated January 26, 2021, and declared that the plaintiff is the sole and lawful owner of the subject property.  The notice of appeal of the defendant Bonita West, LLC, from the order is deemed also to be a notice of appeal from the judgment (see CPLR 5501[c] ).

By order to show cause dated January 13, 2025, the parties to the appeals were directed to show cause before this Court why an order should or should not be made and entered dismissing the appeal from the order dated December 23, 2022, on the ground that the right of direct appeal from that order terminated upon entry in the above-entitled action of the judgment dated March 23, 2023 (see Matter of Aho, 39 N.Y.2d 241), and/or on the ground that the order is superseded by the judgment.  By decision and order on motion of this Court dated January 21, 2026, the motion was held in abeyance and referred to the panel of Justices hearing the appeal for determination upon the argument or submission thereof.

Upon the order to show cause and the papers filed in response thereto, and upon the argument of the appeals, it is

ORDERED that the branch of the motion which is to dismiss the appeal from the order dated December 23, 2022, on the ground that the right of direct appeal from that order terminated upon entry in the above-entitled action of the judgment dated March 23, 2023, is granted and the motion is otherwise denied;  and it is further,

ORDERED that the appeal from the order is dismissed;  and it is further,

ORDERED that the judgment is affirmed insofar as appealed from;  and it is further,

ORDERED that one bill of costs is awarded to the plaintiff.

The plaintiff, Mt. Beacon Properties, LLC, owned certain real property located in Poughkeepsie.  On December 12, 2018, the defendant City of Poughkeepsie sold the property to the defendant Bonita West, LLC (hereinafter Bonita), to discharge a tax lien on the property (hereinafter the tax lien sale).  Bonita subsequently assigned its interest in the property to the defendant Lent 51, LLC (hereinafter Lent).  After two years had elapsed from the date of the tax lien sale, during which the plaintiff failed to redeem the property, the City conveyed the property to Lent by tax deed dated January 26, 2021 (hereinafter the tax deed).

The plaintiff thereafter commenced this action against the City, Lent, and Bonita.  In the second cause of action asserted against the City and the third cause of action asserted against Bonita and Lent, the plaintiff sought, inter alia, to set aside the tax lien sale and the tax deed and a judgment declaring that the plaintiff is the sole and lawful owner of the property.  After discovery, the plaintiff moved for summary judgment on the second and third causes of action and declaring that it is the sole and lawful owner of the property.  The defendants cross-moved, among other things, for summary judgment dismissing those causes of action and, in effect, for a judgment declaring that the plaintiff is not the sole and lawful owner of the property.  In an order dated December 23, 2022, the Supreme Court, inter alia, in effect, granted the plaintiff's motion and denied those branches of the defendants' cross-motion.  The court issued a judgment dated March 23, 2023, among other things, setting aside the tax lien sale and the tax deed and declaring that the plaintiff is the sole and lawful owner of the property.  The defendants appeal.

“ ‘[S]tatutes authorizing tax sales are to be liberally construed in the [property] owner's favor because tax sales are intended to collect taxes, not forfeit real property’ ” (County Acquisitions, LLC v. Lanser, 235 AD3d 831, 834, quoting James B. Nutter & Co. v. County of Saratoga, 39 NY3d 350, 355–356).  “[E]very material provision designed for the security and protection of the persons taxed must be complied with in effecting a tax sale” (Land v. County of Ulster, 84 N.Y.2d 613, 616 [alteration and internal quotation marks omitted] ).  “Failure to comply substantially with requirements that inure to the benefit of the taxpayer, such as determination of ․ whether notice was afforded the taxpayer, are examples of jurisdictional defects that operate to invalidate a sale or prevent passage of title” (id. [internal quotation marks omitted] ).

Here, the plaintiff demonstrated, prima facie, that the City failed to substantially comply with former section 14.21 of City of Poughkeepsie Administrative Code, which set forth certain notice requirements relating to the tax lien sale (see id.).  In opposition, the defendants failed to raise a triable issue of fact.  Accordingly, under the circumstances of this case, the tax lien sale and resulting tax deed were void (see generally Land v. County of Ulster, 84 N.Y.2d at 616).

The parties' remaining contentions either are without merit or need not be reached in light of our determination.

IANNACCI, J.P., BRATHWAITE NELSON, WOOTEN and TAYLOR, JJ., concur.

ENTER:

Darrell M. Joseph

Clerk of the Court