February 20, 2015 Practice Points

Mechanic's Lien Claimants Entitled to Due Process Notice of Tax Foreclosure Sale

The Supreme Court of Missouri upheld a trial court’s decision

by Robert M. Pitkin

The Supreme Court of Missouri has upheld a trial court’s decision that mechanic’s lien claimants are entitled to notice of a tax foreclosure sale involving property covered by their liens under the Due Process Clause of the 14th Amendment of the Constitution and accordingly upheld the setting aside of the tax foreclosure sale to Realty Acquisition, LLC, the appellant.( In the Matter of Foreclosure Liens for Delinquent Taxes by Action in Rem: Collector of Revenue, by and through the Director of Collections for Jackson County, Mo. v. Parcels of Land Encumbered with Delinquent Land Tax Liens; Realty Acquisition, LLC, --- S.W.3d --- , 2015 WL 195897 (Mo. banc Jan. 13, 2015))

Respondents Beemer Construction, Inc. and Seal-O-Matic Paving were unpaid subcontractors on a residential development owned by Sunnypointe, LLC. Both Beemer and Seal-O-Matic timely filed valid mechanic’s liens against the development in 2007: $164,879.76 by Beemer and $187,494.80 by Seal-O-Matic. A timely mechanic’s lien foreclosure action was then filed against the property. There were no unpaid taxes at the time of the mechanic’s liens or the filing of the foreclosure action.

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