TENNESSEE PROPERTIES, INC. v. Gillentine
66 So. 3d 695
| Miss. Ct. App. | 2011Background
- Tennessee Properties, Inc. (TPI) filed a 2008 suit to adjudicate title to Verona, Mississippi property foreclosed in 1998.
- Southern Pilot Insurance Co. conducted the 1998 foreclosure; Gillentine bought the property from Southern Pilot on August 31, 1998.
- Gillentine obtained financing from Renasant Bank, which held a secured interest in the property.
- TPI claimed Southern Pilot’s foreclosure was unauthorized because TPI had paid the underlying debt, or void because sale did not comply with the deed of trust’s public-outcry requirement.
- Gillentine moved to dismiss on Rule 12 grounds (no service on Southern Pilot, no Rule 19 joinder of Renasant, and limitations period) and sought Rule 11 sanctions.
- Chancery Court dismissed the complaint as time-barred but denied sanctions; the court of appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which statute of limitations applies? | TPI argues ten-year limit for defective instruments applies. | Gillentine argues three-year limit governs wrongful-foreclosure claims. | Three-year limit applies; claim time-barred. |
| Does tolling for concealed fraud apply? | TPI contends concealed fraud tolling extends limitations due to sale defects. | Gillentine argues public-record exception defeats concealed-fraud tolling. | Public-record exception applies; tolling not established due to lack of record evidence. |
| Should Rule 11 sanctions be awarded? | TPI's conduct justified sanctions for filing allegedly frivolous pleadings. | Gillentine seeks sanctions for asserted deficiencies in TPI’s record-keeping and joinder. | No sanctions; chancery court did not abuse discretion. |
Key Cases Cited
- S. Land & Res. Co. v. Dobbs, 467 So.2d 652 (Miss. 1985) (general three-year statute governs wrongful foreclosure actions)
- Oakwood Homes Corp. v. Randall, 824 So.2d 1292 (Miss. 2002) (record must support assignments of error on appeal)
- O'Neal Steel, Inc. v. Millette, 797 So.2d 869 (Miss. 2001) (public-record exception to concealed fraud tolling)
- Leaf River Forest Prods., Inc. v. Deakle, 661 So.2d 188 (Miss. 1995) (weak or 'light-headed' claims are not necessarily frivolous)
- City of Madison v. Bryan, 763 So.2d 162 (Miss. 2000) (frivolousness standard under Rule 11)
- Fletcher v. Lyles, 999 So.2d 1271 (Miss. 2009) (de novo review of questions of law on statute of limitations)