Owen J. Roberts

“ But we do not deem the name or label of the legislation important. The fact is, as the court below holds, that the purpose and effect of the statute was to render unavailing to the owner whose property had been sold for taxes, as grounds of attack on the title of the purchaser from the State, irregularities and informalities in the performance of acts by State officers in connection with the assessment, levy, and sale which the legislature could, in its discretion have omitted to prescribe as essentials to the passing of a valid title. ”

“ The Supreme Court of Arkansas held that 'the Act (of 1935) does not profess to cure tax sales, but only (provides) that tax sales shall not be set aside by the courts because of certain irregularities and informalities, naming them.' It said that the appellants acquired no greater vested interest or title than the State had and the repeal of the Act of 1935 'violated no constitutional right of theirs to a defense' thereunder. ”

“ The state, by quit claim deeds, without any express warranty whatever, conveyed the lands in question to appellants. It is appellants' claim that an 'obligation of the contract created by the grant of the State' has been impaired by the Arkansas statute. Stripped of surplus verbiage, appellants' naked contention is that Arkansas, by its quit claim sale and conveyance, obligated itself to refrain from thereafter passing a general legislative enactment if such enactment would affect in any manner any of the legal means provided to protect tax sale purchasers against loss. ”

“ For present purposes it is unnecessary to recite the statutory procedure for assessment, levy, and collection of real estate taxes in Arkansas. If the taxes levied become delinquent a sale by the Collector is authorized. If no person bids the amount of the delinquent taxes, penalty, and costs, the Collector is to bid in the property in the name of the State. [4] The State is not required to pay the amount bid in its name. [5] The Clerk of the County Court is required to make a record of the sale to the State and send a certificate thereof to the Auditor of State. ”

“ As already stated, Arkansas was not faced with a problem peculiar to that state alone. At the depth of the depression, over 20% of all real property in the United States was tax delinquent. [20] Nor was Arkansas alone in seeking to do something about the situation. 'Since 1928 nearly every state in the Union has enacted legislation dealing with the problem of delinquent taxes and a number of states have completely remodeled their systems of tax delinquency laws. ”

“ In Arkansas, as appellants argue here, 'these actions to cancel tax deeds are in their essential nature nothing more or less than suits to redeem the property * * *.' And it has long been recognized as the law in Arkansas that 'the right to redeem lands from a tax-sale depends upon the statute in force at the date of the sale.' Thompson v. ”

“ Tax sold properties are undoubtedly bought with the knowledge on the part of those who speculate [30] in them that states ordinarily adopt a liberal policy in order to protect property owners from tax forfeiture. And even granting that we could enter into questions of policy, I would be unable to reach the conclusion that Arkansas, by repealing its 1935 statute, acted 'without * * * reason or in a spirit of oppression.' W. B. Worthen Co. ”

“ In seven counties of the state the tax delinquency was over 50%. Because of these delinquencies many towns, school districts, villages and cities were practically bankrupt' * * * (and) serious breaches of the peace had occurred.' [24] The policy behind mortgage moratoria and the policy behind tax leniency to landowners are inextricably intertwined. [25] The basic philosophy of the two types of legislation is identical. For encouragement of home and farm ownership has always been treated as a major objective of our social and governmental policy. ”

“ Societies exercise a positive control as well over the inception, construction and fulfilment of contracts, as over the form and measure of the remedy to enforce them.' The accuracy of this statement cannot be questioned by one who reflects upon the extent to which contracts and agreements are a part of the daily activities of our society. ”

“ The federal and state courts have held, with practical unanimity, that any substanti l alteration by subsequent legislation of the rights of a purchaser at tax sale, accruing to him under laws in force at the time of his purchase, is void as impairing the obligation of contract. ”

“ As the Supreme Court has indicated in this case, Act 142 of 1935 was one of a series of statutes adopted to prevent the setting aside of tax sales and titles based upon them for informalities and irregularities in the assessment and levy of taxes and the sale of property for delinquent taxes which had seriously impeded the effective collection of taxes and diminished the State's revenue. ”

“ The Blaisdell decision represented a realistic appreciation of the fact that ours is an evolving society and that the general words of the contract clause were not intended to reduce the legislative branch of government to helpless impotency. ”

“ Chief Justice Marshall pointed out the distinction between obligation and remedy. Sturges v. Crowninshield, supra, 4 Wheat. (122) , (page) 200, 4 L.Ed. 529. Said he: 'The distinction between the obligation of a contract, and the remedy given by the legislature to enforce that obligation, has been taken at the bar, and exists in the nature of things. Without impairing the obligation of the contract, the remedy may certainly be modified as the wisdom of the nation shall direct." Home Building & Loan Association v. Blaisdell, supra, 290 U.S. at page 430, 54 S.Ct. ”

“ The states, and the federal government also, were faced with a 'financial crisis (which had) the same results as if it were caused by flood, earthquake, or disturbance in nature.' [23] The federal government greatly expanded facilities for farm loans; set up the Home Owners Loan Corporation ”