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Lauren Bartels, Appellant, vs. Donald Blattner, et al., Respondents. C0-98-2317, Court of Appeals Published, June 22, 1999.

STATE OF MINNESOTA IN COURT OF APPEALS C0-98-2317 Lauren Bartels, Appellant, vs. Donald Blattner, et al., Respondents. Filed June 22, 1999 Affirmed Toussaint, Chief Judge Wabasha County District Court File No. C4-98-112 Samuel V. Calvert, 1011 2nd Street North, Box 1044, St. Cloud, MN 56302 (for appellant) Roger E. Petersen, Petersen & Mulcahey, 119 Sixth Street SW, Suite B, Rochester, MN 55902 (for respondents) Considered and decided by Klaphake, Presiding Judge, Toussaint, Chief Judge, and Willis, Judge. SYLLABUS A vendor's failure to notify the Internal Revenue Service of the cancellation of a contract for deed on property subject to an Internal Revenue Service (IRS) lien does not void the cancellation or extinguish the vendor's interest in the property. OPINION TOUSSAINT, Chief Judge The Internal Revenue Service, unaware that the cancellation of a contract for deed on the property had extinguished the interest of the defaulting taxpayer, the vendee, held an auction of the taxpayer's interest. Appellant purchased the interest and attempted to obtain a warranty deed from respondents, successors in interest to the vendor, by paying them the amount due on the contract for deed. When respondents refused, she brought this action. Respondents were granted summary judgment on the ground that appellant had no interest in the property. Because there are no material facts in dispute and we see no error of law, we affirm. FACTS In 1986, Bertha Blattner, mother and predecessor in interest of respondents Donald Blattner, Geraldine Kruger, and Lloyd Blattner, sold a piece of property on contract for deed to Louis Johnson. [1] The contract for deed was filed in Wabasha County. Louis Johnson was named as the defaulting taxpayer in 1993 when the IRS filed a notice of federal tax lien in the amount of $16,240.69 on the property. In June 1997, Bertha Blattner served on Louis Johnson a notice of cancellation of contract for deed that listed amounts due in excess of $16,560.86. Bertha Blattner died later that month, and the property was conveyed to respondents, her heirs, by a deed of distribution. The notice of cancellation, affidavit of failure to comply and affidavit of service on Louis Johnson were filed in October 1997; the deed of distribution was filed in November 1997. The IRS was not notified of the cancellation of the contract for deed.

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Lauren Bartels, Appellant, vs. Donald Blattner, et al., Respondents. C0-98-2317, Court of Appeals Published, June 22, 1999.

In 1998, the IRS held an auction pursuant to 26 U.S.C.

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