Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Metropolitan Government of Nashville and Davidson County ex rel. State v. Delinquent Taxpayers

Court of Appeals of Tennessee, Nashville

July 24, 2019

METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY EX REL. STATE OF TENNESSEE
v.
DELINQUENT TAXPAYERS AS SHOWN ON THE 2011 REAL PROPERTY TAX RECORDS OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE

          Assigned on Briefs June 3, 2019

          Appeal from the Chancery Court for Davidson County No. 13-299-III Ellen H. Lyle, Chancellor.

         This case involves a dispute regarding a trial court's assessment of interest on a parcel of real property subject to a redemption action. The trial court required the redeeming party to pay interest to the tax sale purchasers for the time that elapsed during the redemption proceedings. The redeeming party appealed the trial court's application of interest to any period after the redeeming party had filed its notice of redemption. Following our thorough review of this issue, we agree that assessment of interest beyond the date of the filing of redemption notice was improper. We therefore reverse the trial court's assessment of interest and modify the trial court's judgment accordingly.

         Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed in Part as Modified, Reversed in Part; Case Remanded

          Charles Walker, Nashville, Tennessee, for the appellant, REO Holdings, LLC. [1]

          Thomas R. Frierson, II, J., delivered the opinion of the court, in which J. Steven Stafford, P.J., W.S., and W. Neal McBrayer, J., joined.

          OPINION

          THOMAS R. FRIERSON, II, JUDGE

         I. Factual and Procedural Background

         On March 8, 2013, the Metropolitan Government of Nashville and Davidson County, Tennessee ("Metro") filed a complaint in the Davidson County Chancery Court ("trial court") against delinquent taxpayers as shown on the 2011 real property tax records. As pertinent herein, Metro averred that the estate and heirs of Jessie Mills owed Metro outstanding taxes for a parcel of real property located at 1026 N. 7th Street in Nashville ("the Property"). On April 18, 2013, William Mills, a purported heir of Jessie Mills, filed an answer contesting Metro's allegation that 2011 real property taxes were overdue and asserting that a good faith effort had been made to work with Metro to pay the taxes on the Property.

         On October 25, 2013, Metro moved for judgment on the pleadings. In its motion, Metro alleged that no adequate defense to the delinquent tax action had been asserted in the answer and requested that the trial court award Metro the real property taxes owed, as well as interest, attorney's fees, and court costs. The trial court conducted a hearing concerning the motion on November 22, 2013, and subsequently entered an order on December 2, 2013, granting Metro's motion for judgment on the pleadings. The trial court awarded to Metro real property taxes due on the Property for the years 2008 through 2011 and granted Metro authority to collect those taxes through public auction of the Property if the judgment remained unpaid. Following the clerk and master's provision of notice of a delinquent tax sale, on January 22, 2014, the Property was sold at public auction to Emily Girvin and Michael Beyer for $29, 000.00. The trial court entered a "Final Decree Confirming Sale" on February 28, 2014.

         On February 24, 2015, Evans Realty Management LLC filed a "Notice of Redemption Process" in the trial court and tendered payment for the Property. Also on February 24, 2015, REO Holdings, LLC, ("REO") filed a "Notice of Redemption Process" in the trial court and tendered payment for the Property.[2] The tax sale purchasers subsequently filed a claim for the cost of lawn care and payment of the 2014 real property taxes on the Property. The trial court set a hearing for May 28, 2015, concerning the claims and objections filed, to determine whether Evans Realty Management LLC or REO should be allowed to redeem the Property.

         Following the filing of various pleadings by the parties, the trial court entered an order on December 11, 2015, transferring the matter from Chancellor Carol L. McCoy, who had recused herself, to Chancellor Ellen H. Lyle for further proceedings. Subsequently, on March 9, 2016, the trial court entered an order staying the matter due to the institution of bankruptcy proceedings by REO. Following a remand from the bankruptcy court, the trial court set the matter for hearing to determine whether the Property could properly be redeemed by either Evans Realty Management LLC or REO.

         The trial court conducted a hearing on February 6, 2018. On February 7, 2018, the trial court entered an order concluding that REO had rightly sought redemption as a creditor of William Mills. Thereafter, on February 16, 2018, the trial court entered a supplemental order wherein the court directed REO to pay Ms. Girvin and Mr. Beyer the additional amount of $8, 633.70, representing interest at a rate of ten percent per annum on the purchase price of the Property ($29, 000.00), for the time period of February 24, 2015, through February 15, 2018. On February 27, 2018, William Mills filed a notice of appeal from the trial court's February 7, 2018 order. REO filed a notice of appeal concerning the trial court's February 16, 2018 order on March 5, 2018. On March 12, 2018, the trial court entered an order directing that REO pay the $8, 633.70 interest amount contained in the February 16, 2018 supplemental order directly to Ms. Girvin and Mr. Beyer.

         On June 19, 2018, this Court entered an order determining that the appeals filed by both William Mills and REO were untimely because the trial court had yet to issue a ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.