Knox County, Tennessee v. Delinquent Taxpayers
E2016-01750-COA-R3-CV
| Tenn. Ct. App. | Jun 13, 2017Background
- Omer G. Kennedy and Angela Helms (landowners) sought to redeem property sold for delinquent taxes; Jon Johnson purchased at tax sale on Jan 13, 2015.
- Landowners paid $37,892.81 within the one-year redemption period, seeking redemption as permitted by Tenn. Code Ann. § 67-5-2701.
- Tax sale purchaser sought additional funds for insurance, interest, and related costs under § 67-5-2701(d)(e); the court granted some additional sums.
- January 11, 2016, the court ordered landowners to pay an additional $5,869.81 within 30 days; the order indicated if not paid, redemption would be denied.
- Notice of the January 11 order was not sent to landowners’ last known address; landowners only received it after the 30-day window had expired.
- Landowners paid the additional funds on February 18, 2016; tax sale purchaser moved to deny redemption as untimely; trial court voided the January 11 order for defective service/entry and issued relief under Rule 60.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the January 11, 2016 order was effectively served and entered | Johnson contends proper service/entry; landowners received no timely notice. | Kennedy/Helms argue service complied or substantial compliance supported by practice and notice was provided. | Order not effectively served under Rule 5 and not effectively entered under Rule 58; void. |
| Whether relief under Rule 60.02 was appropriate to set aside the order | Relief warranted due to excusable neglect from lack of notice. | Relief not proper if notice defective; challenge to finality persisting. | Rule 60.02 relief affirmed; trial court did not abuse discretion; order set aside. |
Key Cases Cited
- Henry v. Goins, 104 S.W.3d 475 (Tenn. 2003) (great deference to trial court on Rule 60.02 relief; due process concerns when notice is lacking)
- Mortgage Elec. Reg. Sys., Inc. v. Ditto, 488 S.W.3d 265 (Tenn. 2015) (due process protections in tax-related property sales)
- Jerkins v. McKinney, 533 S.W.2d 275 (Tenn. 1976) (courts' authority to relieve from judgments before finalization; Rule 60 context)
- In re Taylor B.W., 397 S.W.3d 105 (Tenn. Ct. App. 2013) (judgment revision before finalization)
- Blackburn v. Blackburn, 270 S.W.3d 42 (Tenn. 2008) (Rule 58 finality standards for judgments)
- Masters ex rel Masters v. Rishton, 863 S.W.2d 702 (Tenn. Ct. App. 1992) (service or timing defects affect finality and appealability)