A U.S. District Judge has signed an order of default judgment against property companies that a Cross Lanes couple is suing, following the companies' failure to respond to the lawsuit.
Judge Joseph R. Goodwin issued the order Friday after the companies, Paige-Hunter Properties, LLC and PD Enterprises, LLC, had nearly a month to respond to the suit, which was filed June 7.
The companies were accused in the lawsuit of purchasing the deed to the home owned by elderly Cross Lanes couple Jerry and Elizabeth Martin without their knowledge, then attempting to sell it back to them years later at an inflated price.
The default judgment deprives the companies of the ability to defend themselves in court, meaning the judge will rule in the couple's favor if their counsel files motions, affidavits or arranges hearings to facilitate the entry of default judgment by July 27.
If the Martins and their counsel do not respond, the lawsuit will be dismissed by the court.
The Martin's home was sold for delinquent taxes in Nov. 2012. They did not receive notice of their overdue property taxes for two years because of a change to their address by 911 and emergency services, according to the complaint.
The Martin's property was purchased in 2012 by PD Enterprises, which sold the deed to Paige-Hunter Properties in 2014.
The lawsuit against the companies states that both Hobert Aliff Jr., the owner of Paige-Hunter Properties, and the business itself "have a history of obtaining windfalls purchasing tax liens and, on information and belief, selling them back to the property owner or a third party for a substantial percentage of the actual value of the property."
The complaint lists 26 occasions where Paige-Hunter Properties purchased tax liens and attempted to sell them to property owners at a "significant percentage of its fair market value."
The Martins are seeking damages, attorney fees and for the court to void the deed for their home.
Also named in the suit was Kanawha County Clerk Vera McCormick. The suit claims McCormick knowingly granted Paige-Hunter Properties a void tax deed to the Martins' home.
McCormick filed a motion to dismiss the suit Wednesday, based on a legal technicality of improperly being served notice of the lawsuit.
Reach Kayla Asbury at kayla.asbury@wvgazettemail.com, 304-348-3051 or follow @kasbury on Twitter.