In a significant ruling, the Appellate Division of the Supreme Court of the State of New York affirmed the validity of a tax deed in the case of Jagnow v. Pekich, docket number 2022-02422. The court's decision, issued on September 23, 2026, affects property rights for individuals involved in tax lien purchases and clarifies the legal standards for notifying property owners about tax deeds.
The case centers around Ilona Jagnow, the plaintiff-appellant, and Peter Pekich, the respondent, along with defendants Hank Abma and Robert Schuler. The dispute arose after Pekich purchased a tax lien at a public auction in 2018. When the lien was not redeemed, the Nassau County Treasurer conveyed the property to Pekich through a tax deed. Jagnow challenged the validity of this deed, claiming that the notice to redeem was improperly served.
The legal battle began in 2020 when Jagnow filed a lawsuit against Pekich and others under the Real Property Actions and Proceedings Law (RPAPL) article 15, seeking to quiet title to the property and declare the tax deed null and void. Pekich countered by asserting that the notice to redeem was properly served, which led to cross-motions for summary judgment from both parties.
On March 11, 2022, the Supreme Court of Nassau County ruled against Jagnow, denying her motion to declare the tax deed null and void and granting Pekich's cross-motion to dismiss her complaint. The court found that Pekich had made a prima facie showing that the notice to redeem was valid. This decision was later followed by a judgment on October 31, 2022, which reinforced Pekich's position and dismissed Jagnow's claims.
The Appellate Division upheld the lower court's decision, stating, "service of the required notice to redeem is good and sufficient in support of the tax deed." The ruling emphasized that Jagnow failed to raise any triable issues of fact that would challenge Pekich's entitlement to judgment as a matter of law. Judges Cheryl E. Chambers, Deborah A. Dowling, Lillian Wan, and James P. McCormack all concurred with the decision.
This ruling has significant implications for property owners and buyers of tax liens. It reinforces the importance of proper notification in tax lien transactions and clarifies the legal standards that govern such processes. The court's decision may influence future cases involving tax deeds and property rights, as it underscores the necessity for compliance with statutory requirements.
Moving forward, the ruling sets a precedent for how courts will handle similar disputes regarding tax deeds and the validity of notices to redeem. It serves as a reminder for property owners to remain vigilant about tax liens and the associated notification processes.
As for what’s next, it is unclear if Jagnow plans to appeal the decision further. The court filing did not provide details on any related cases pending or any indication of an appeal. However, the ruling could prompt discussions about potential reforms in how tax lien notifications are handled in New York.