MELTON, Justice.
This case requires a determination of whether conventional actions for quiet title, see OCGA § 23-3-40 et seq., where the State of Georgia asserts an interest in the property at issue, are barred by the doctrine of sovereign immunity. For the reasons set forth below, we find that they are barred and affirm the ruling of the trial court. We further find, however, that in rem actions for quiet title, see OCGA § 23-3-60 et seq., are not barred by sovereign immunity.
The underlying facts of this case are not in dispute. TDGA, LLC acquired a certain piece of property from another entity that had purchased the property at a tax sale. Afterwards, TDGA followed the non-judicial process of foreclosing any right of redemption to the property in accordance with OCGA § 48-4-45 and OCGA § 48-4-46. TDGA provided notice of the foreclosure of redemption rights to all interested parties in
First, some settled law must be set forth. The Georgia Constitution states:
Ga. Const. Art. I, Sec. II, Par. IX (e). Sovereign immunity is immunity "from suit," involving "actions or claims against the state and its departments, agencies, officers, and employees." Ga. Const. Art. I, Sec. II, Par. IX (a). "`In construing a constitutional provision, the ordinary signification shall be applied to words.'" (Citation omitted.) Blum v. Schrader, 281 Ga. 238, 239(1), 637 S.E.2d 396 (2006). Furthermore,
(Citations and punctuation omitted). Id. at 239-40(2), 637 S.E.2d 396. Therefore, in the greatest general sense, the State and its agencies are immune from suit unless the legislature specifically states otherwise. Neither the statutory provisions regarding foreclosure of the right of redemption nor conventional quiet title actions contain an explicit waiver of sovereign immunity. For this reason, the State and its agencies are immune from suit under OCGA § 23-3-40
This does not mean, however, that there is no mechanism for quieting title against all potential claimants, including the State. OCGA § 23-3-60 provides such a mechanism. A quiet title action under this statute is in rem. It is not, in fact or effect, an action against the State or any other person or entity. It is an action against the underlying property, itself, and its purpose is to remove any and all clouds on the title of that property.
Although we do not base our conclusion in this case on Eleventh Amendment principles, precedent in that area of law supplies a persuasive theoretical underpinning for this result. In Tanner v. Brasher, 254 Ga. 41, 42(1), 326 S.E.2d 218 (1985), we considered the Eleventh Amendment
Id. at 43-44(1), 326 S.E.2d 218.
This, of course, makes fundamental sense. For purposes of clearing title to any piece of property, it is necessary to include a full consideration of the State's rights, if any, because "title to all lands originates from ... the state," OCGA § 44-5-1, and "[a]ll realty in this state is held under the state as the original owner thereof." OCGA § 44-5-2. But the State cannot assert title to otherwise privately-held land simply by issuing an edict or imposing a lien that cannot be effectively challenged and impairs the marketability of the property. In rem quiet title actions, in which the property is the only defendant and sovereign immunity is not applicable, prevent this problem.
Therefore, for all of the reasons set forth above, we find that sovereign immunity does bar a conventional quiet title action against the State, OCGA § 23-3-40, but sovereign immunity is not applicable to an in rem quiet title action against all the world. See OCGA § 23-3-60.
Judgment affirmed.
All the Justices concur.
NAHMIAS, Justice, concurring.
I join the Court's opinion in full, but I think it is important to note that there is a second type of proceeding in rem to quiet title where the State or its agencies may have claims, as well as another argument that supports the Court's conclusions.
The little-known and now little-used Land Registration Law of 1917, OCGA §§ 44-2-40 to 44-2-253, is found in the Property Code rather than in the Equity Code with other quiet title proceedings. See generally 3 Daniel F. Hinkel, Pindar's Georgia Real Estate Law and Procedure §§ 24:1 to 24:66 (7th ed. updated 2015) ("Ga. Real Estate Law"). The Land Registration Law — Georgia's version of
As the Court's opinion correctly explains, such an in rem proceeding against land does not implicate sovereign immunity, because it is not an "action or claim against the state" (or against any department, agency, officer, or employee of the State). Ga. Const. of 1983, Art. I, Sec. II, Par. IX (a). But it is also apparent from the text of the Land Registration Law that the General Assembly intended that any claims the State may have to the land at issue would be subject to adjudication by the court.
The same cannot be said of conventional quiet title actions, see OCGA §§ 23-3-40 to 23-3-44, which pre-date the Land Registration Law, are not brought in rem, and operate on particular instruments allegedly casting a cloud on title. But the same can be said of actions under the Quiet Title Act of 1966, OCGA § 23-3-60 to § 23-3-73, which was "designed to adapt the `title-laundry' function of the land registration proceeding to a simpler, speedier form of action." 3 Ga. Real Estate Law § 25:11 (footnote omitted). See also id. § 24:1 ("Land registration proceedings in Georgia have been largely discontinued since the enactment of the Quiet Title Act of 1966, which serves the same purpose.").
The General Assembly clearly stated that the proceedings established by the Quiet Title Act are meant to determine all claims to the land at issue, so that there would be no uncertainty as to title that would render land in this State unmarketable:
OCGA § 23-3-60 (emphasis added). The proceeding is expressly in rem, and its scope is expressed in exceptionally broad terms, operating "against all the world to establish [the petitioner's] title to the land and to determine all adverse claims thereto ..., which proceeding may be against all persons known and unknown who claim or might claim adversely to him, whether or not the petition discloses any known or possible claimants." OCGA § 23-3-61 (emphasis added).
As the Court's opinion notes, all title to land in Georgia originates from the State, see OCGA §§ 44-5-1 and 44-5-2, so the State has a possible adverse claim of title that will be determined in virtually every action to quiet title against the world, and innumerable such actions also will involve tax claims of the State and its agencies and subdivisions of the sort at issue in this case. While the Quiet Title Act (unlike the Land Registration Law) does not include an express reference to binding "the state," interpreting the Quiet Title Act to exclude claims that the State raises or could raise would contradict the statute's against-all-the-world scope and purpose. Thus, as with the Land Registration Law, even if sovereign immunity had some import for this sort of in rem proceeding, it is clear that the General Assembly meant for
In my view, these additional considerations leave no doubt that the Court's opinion reaches the correct conclusions.
I am authorized to state that Justice Blackwell joins in this concurrence.
(Emphasis supplied.)