Island County v. Cosmic Light Creations

1 Wn.App.2d 1016

ISLAND COUNTY, a political subdivision of the State of Washington, Respondent, v. COSMIC LIGHT CREATIONS; COSMIC LIGHT CREATIONS c/o OLGA NADA TEPES, also known of record as NADA OLGA TEPES; THE DIRECTORS OF COSMIC LIGHT CREATIONS, AN INACTIVE CORPORATION, AS TRUSTEE FOR THE SHAREHOLDERS; OLGA NADA TEPES, also known of record as NADA OLGA TEPES, Appellant, ADMIRAL'S COVE BEACH CLUB; ADMIRAL'S COVE WATER DISTRICT; ELLEN L BACHMAN; BON AIR COMMNITY CLUB, INC.; JEAN BOND; BUENA VISTA COMMUNITY CLUB; ALLEN JOSEPH CALDWELL; DEBORAH T. CAMPBELL; JAMES J. CAMPBELL; CAPITAL ONE BANK (USA), N.A. c/o SUTTELL AND HAMMER, P.S.; CITIFINANCIAL, INC.; CLINTON WATER DISTRICT; DEER LAKE HAVEN HOMEOWNERS ASSOCIATION c/o WHIDBEY WATER SERVICES; HEIRS AND DEVISEES OF HELEN C. DIANICH; HEIRS AND DEVISEES OF JOHN DIANICH; ALAN S. DONALDSON and MYRA A. DONALDSON; EQUITY TRUST COMPANY FBO SCOTT STRODEL IRA; BRETT FENSTERMAKER, ADMINISTRATOR OF THE ESTATE OF WILLIAM H. REYNOLDS; FINANCIAL ASSISTANCE, INC. c/o JASON WOEHLER; KIMBERLY FREDERICK; ROBERT A. FREDERICK; LAWRENCE R. GABELEIN, also know of record as LARRY R. GABELEIN and LARRY GABELEIN; LARRY R. GABELEIN and JANE DOE GABELEIN; HEIRS AND DEVISEES OF LILLIAN K. GABELEIN, who also appears of record as LILIJEN GABELEIN; ARTIST GELBERT; GOSS LAKE PARK COMMUNITY CLUB; MYTRON O. GRIMM and MARY L. GRIMM; HEIRS AND DEVISEES OF JACK R. HALE; JACKLYN C. HALE; HARBOR SANDS BEACH ASSOCIATION; HARRIS CUSTER ESTATES WATER ASSOCIATION; RICHARD H. HINKSON; TRACY W. HINKSON; HORIZON BANK c/o WASHINGTON FEDERAL BANK; HUDGINS ENTERPRISES I, LLC; INTERNAL REVENUE SERVICE; RICHARD TERRY JACOBSON; RICHARD TERRY JACOBSON, TRUSTEE OF THE TERRY JACOBSON TRUST; CHARLES L JONES; JUNIPER BEACH CO-OP WATER ASSOCIATION; JUNIPER BEACH COMMUNITY ASSOCIATION; JUNIPER BEACH WATER DISTRICT; SALLY KOSH-HEAGREN OR SUCCESSOR TRUSTEE OF THE LP TRUST DATED JULY 28, 2006; UNKNOWN SUCCESSOR TRUSTEE OF THE LP TRUST DATED JULY 28, 2006; BARBARA S. KUHNER, TRUSTEE FOR THE BARBARA S. KUHNER TRUST; LAGOON POINT COMMUNITY ASSOCIATION; LAGOON POINT WATER DISTRICT; JONATHAN H. LEAVITT and RANDI LEAVITT; LONG POINT MANOR WATER COMPANY; BRIAN LOPRIORE; LOST LAKE PROPERTY OWNERS ASSOCIATION; MARILYN MAIN; NICHOLAS P. MALTA and RUTH MALTA; NICHOLAS P. MALTA c/o WANDA MALTA; HECTOR MCARTHUR AND LEDA MCARTHUR; ESTATE OF DENNIS MENTZOS; HEIRS OF DENNIS MENTZOS; MICHELLE MENTZOS; UNKNOWN HEIRS AND CREDITORS IN THE ESTATE OF DENNIS MENTZOS; MIDWAY TRADERS VILLAGE CONDOMINIUM ASSOCIATION; MEMBERS OF THE MIDWAY TRADER'S VILLAGE LLC; MEMBERS OF THE MIDWAY TRADER'S VILLAGE LLC, FORMERLY KNOWN AS SEATREE PROPERTIES LLC; MUTINY VIEW MANOR COMMUNITY CLUB, INC.; GORDON NELSON and VIVIAN E. NELSON; NEW UTSALADY WATER SYSTEM; CITY OF OAK HARBOR; PATRICK B. O'NEILL; DONALD P. OSBORNE; O-ZI YA COMMUNITY CLUB; LAURA PARKS and TOM PARKS (TOM PARKS also known of record as TOMMY PARKS); PARKSIDE WATER ASSOCIATION; ANN MARIE PEMBER; POINELL SHORES HOMEOWNERS ASSOCIATION; PORTFOLIO RECOVERY ASSOCIATES, LLC c/o MACHOL & JOHANNES, LLC; PREFERRED INVESTMENTS, INC.; UNKNOWN SHAREHOLDERS OF PREFERRED INVESTMENTS, INC.; PREFERRED INVESTMENTS, INC., c/o KIRSTI J. JENSEN; PTERODACTLY ENTERPRISES, c/o DEANE MINOR, ATTORNEY; HEIRS AND DEVISEES OF PATSY L. REYNOLDS; HEIRS AND DEVISEES OF WILLIAM J. REYNOLDS; ALICE G. RICE; ROLLING HILLS-GLENCAIRN COMMUNITY SERVICES, INC.; WILLIAM C. ROWLANDS; MICHAEL SANDERSON; DANNY JOE SANTA; SARATOGA BEACH OWNERS ASSOCIATION; JOANNE M. SAYSON; SEATREE PROPERTIES, LLC; SIERRA COUNTRY CLUB c/o KING WATER; SKAGIT COUNTY BAIL BONDS; STATE OF WASHINGTON DEPARTMENT OF SOCIAL AND HEALTH SERVICES; DENNIS B. TREUT; VISTAIRE WATER SYSTEM; WASHINGTON STATE EMPLOYEES RETIREMENT BOARD; WASHINGTON TRUST BANK; WEST BEACH OFF-SITE DRAIN FIELD SYSTEM; WHIDBEY WEST WATER ASSOCIATION; ELIZABETH J. WILLIAMS; JUDITH WINTER; JUDITH WINTER, UNKNOWN SPOUSE IF MARRIED ON DECEMBER 31, 1990; GENEVA WOODRUFF; SHELLEY LYN WRIGHT; and also all other persons or parties unknown claiming any right, title, or ownership interest or lien in or to the real property described in the notice of Application for Judgment Foreclosing Tax Liens and Summons, Defendants.

No. 74942-1-I

Court of Appeals of Washington, Division 1

November 13, 2017

UNPUBLISHED OPINION

DWYER J.

Acting pro se, Olga Nada Tepes appeals a judgment and order of sale foreclosing on a tax lien on real property located in Island County. Although Tepes' arguments are difficult to follow in the manner she presents them, it is reasonably clear that she contends that the property foreclosed upon was exempt from taxation. She also appears to claim that the statutes authorizing the assessment and collection of property taxes are unconstitutionally vague and challenges the trial court's jurisdiction. We affirm.

I

In August 2015, Island County initiated a property tax lien foreclosure proceeding. The proceeding involved numerous parcels of property, including real property designated as "Item No. 46" in a certificate of delinquency filed by the Island County Treasurer. The certificate of delinquency listed both the appellant, Olga Nada Tepes ^[1] and an entity, Cosmic Light Creations, as the property owners and lien or interest holders. The certificate of delinquency identified approximately $4, 400 in unpaid property taxes assessed in 2012, interest, and costs.^[2] The County notified Tepes of the foreclosure action by publication and by certified mail.

In September 2015, Tepes filed several documents in apparent response to the County's complaint. These documents included a "Declaration of Denial of Due Process by Olga Nada Tepes" and an "Affidavit of Status of Olga Nada Tepes: Private Citizen of the United States: American Inhabitant." Tepes asserted a variety of confusing and often internally inconsistent arguments as to why the property tax provisions set forth in Title 84 RCW did not apply to her or to the property identified as Item No. 46.

On November 9, 2015, the court entered a default judgment against all property owners, including Tepes, who were listed in the certificate of delinquency and failed to exercise their right of redemption. After a summary proceeding hearing under RCW 84.64.080(1) on November 16, the court entered findings and a separate judgment and order of sale.

Just before the scheduled sale date of December 8, 2015, Tepes filed additional documents, including a "Notice of Constitutional Challenge to Statute, " and a "Memorandum in law on Property Tax." Around the same time, Tepes informed the County that she was not notified of the November 16 hearing. The County also became aware that notice of that hearing was not sent to the address where Tepes received the original pleadings by certified mail. The County terminated the sale of the property.

The County renoted a hearing and sent notice to Tepes at all addresses known to the County. A second summary proceeding hearing took place on January 20, 2016. Tepes filed a document a few days before the hearing, but did not appear. On the date of the hearing, the court received and filed a faxed document from Tepes which purported to explain her absence from court. The documents included hospital discharge notes, indicating that Tepes was admitted to the hospital on January 11, 2016, and instructing her to take medication "as needed" and to schedule a follow up appointment with a surgeon within two weeks. In a handwritten note, Tepes stated that she was unable to attend any court proceedings "[d]ue to surgery and medications."

The court entered amended findings and conclusions and an amended order and judgment of sale. Among other things, the court found that the property designated as Item No. 46 was subject to taxation, that property taxes were properly assessed, and that as of August 2015 when the County issued the certificate of delinquency, the 2012 property taxes had not been paid.

The court entered conclusions of law, including the following:

1. That this Court has jurisdiction in this matter and the Notice and Summons was served or notice was given in a manner reasonably calculated to inform the owner or owners and any person having a recorded interest in or lien of record upon the property of the foreclosure action.

2. Although an appearance was filed by Olga Nada on September 11, 2015, and more filings were received by the Court on December 2 and December 7, 2015, and on January 13, 2016, no Answer was ever filed and nothing in the pleadings filed presents a valid defense against the relief sought by Island County for unpaid delinquent property taxes owed.

After entry of these orders, Tepes filed more documents, including a "Notice to Vacate." Following a hearing, the court denied the motion on numerous grounds. Specifically the court concluded that Tepes was properly notified of the January 2016 hearing and that "[t]he assessment of real property and collection of real property taxes in Washington state are authorized under Title 84 RCW and supported by Article VII, Section I of the Washington State Constitution." The court further concluded that Tepes had not paid her delinquent property taxes nor "raised any valid defenses to the Court to justify the non-payment of such taxes." The court gave Tepes a final opportunity to avoid foreclosure by paying the delinquent amounts to the Island County Treasurer and, if she failed to do so, allowed the County to proceed with the sale of the property. Tepes appeals.

II

As an initial matter, according to Tepes' opening brief and documents filed below, the property at issue was purchased not by Tepes, but by "Cosmic Light Creations, " a "private religious corporation sole" to provide housing for the minister. "Washington law, with limited exception, requires individuals appearing before the court on behalf of another party to be...