A lawsuit filed against the City of Lakeland five+ months ago was dismissed in Shelby County Chancery Court today (5.25.18) on mootness of the case.
The lawsuit, filed Dec. 8, 2017, sought to block tax-free lease revenue bonds approved by the Lakeland Board of Commissioners (BOC) and its Industrial Development Board (IDB) last year and force a referendum on any bond issue. The suit also alleged violation(s) of the Tennessee Open Meetings Act.
Chancellor Walter Evans heard testimony from both sides and granted the motion to dismiss.
Link to docket report: https://chancerydata.shelbycountytn.gov/chweb/ck_public_qry_doct.cp_dktrpt_frames?backto=P&case_id=CH-17-1772&begin_date=&end_date=
Language on the Court docket: “Motion granted. Joint motion to dismiss, or in the alternative joint motion for summary judgment, based on mootness set Friday May 25, 2018. Granted – Order expected.
Lillie and Cary Melton of Lakeland filed the lawsuit and were joined by James D. Abbott, William T. Mallard, Brian Tipler, Deborah Tipler, Christopher J. Smith, Melissa K. Smith, Heather Long and James L. Murray Jr. Representing the defense was Robert L. J. Spence, Jr. who spoke today, along with Bryan Meredith, both of the Spence Law Firm.
A C Wharton, with the A C Wharton Group, LLC, spoke for the plaintiff today, along with Chris Patterson, Lakeland City Attorney with Wiseman Bray PLLC, and Jeff Smith, Partner at Waller Lansden Dortch and Davis representing the IDB.
Following the proceedings, Lakeland Currents talked to lawyers from both sides.
From Robert R.J. Spence, Jr.
“Today, the Chancery Court made the decision to dismiss the pending case because the City of Lakeland conceded in open court that the 2017 illegal bond transaction was dead and would never be resurrected. The Plaintiffs are gratified by this extremely significant concession and give credit and much thanks to the citizens of Lakeland who supported this lawsuit. Along with today’s concession, the Court of Appeals victory and the prior trial court victory, the lawsuit brought by the citizens of Lakeland has been successful in every court in preventing elected officials from issuing $60,000,000.00 in bonds without the approval of the voters who would have been responsible for paying this debt – the largest in the history of Lakeland. This case has made clear that elected officials of Lakeland cannot violate state law with impunity. At the end of the day, citizens are the primary guardians of the rights and liberties which make our nation great. Cary and Lou Melton, and the rest of the citizen plaintiffs who opposed the elected officials’ attempt to thwart the will of the voters protected the rights of all Lakeland citizens and should be commended.”
From Chris Patterson
“We are obviously pleased with the Court’s ruling today. Litigation like this is regrettable for the City as it pits neighbor against neighbor. Significant resources have been spent by both sides, and while I don’t know what the future holds for Lakeland, I hope that today represents the end of litigation for the City.”
From Mayor Wyatt Bunker
“It was a great day for the City of Lakeland. The frivolous lawsuit filed by obstructionists was dismissed. Lakeland Prep is one step closer to being a reality. Moving Lakeland Forward.”
In initial comments, Mr. Wharton said at issue was the authority to issue bonds with proceeds to build a school. He referred to a high school which was to be built adjacent to Lakeland Middle Preparatory School which opened in August 2017 to grades 5-8. Lakeland Elementary School serves students in PK through fourth grade. Through an interlocal agreement, Lakeland students attend Arlington High School.
Mr. Wharton said part of the rush last year was the pending tax cut and jobs act bill which became law Jan. 1, 2018. The City wanted the IDB to issue bonds and re-structure financing on the middle school debt with tax exempt bonds. But with the passage of the new Act, that proposal became inoperable.
Additionally Mr. Wharton said some might question that the City might come back and do something similar in the future. But, he said, courts don’t issue advisory opinions. He said the presumption is that officials will follow the law.
Mr. Patterson said the deal from 2017 is done, it can’t happen. He noted that officials from both the City and IDB passed resolutions repealing the resolutions on the bond issue.
Mr. Spence cited a Tennessee Supreme Court case which attempted to terminate proceedings, similar to the Lakeland case. He said the voluntary cessation of illegal conduct does not implicate the mootness doctrine.
He said if Lakeland and the IDB would agree that state law was violated and they would never do it again, he (Mr. Spence) would agree. “But that’s not what they are doing. They have done a two-step and that’s not convincing.”
He cited the City’s filing to the Court of Appeals in Jackson, TN Jan. 5, 2017 as proof they didn’t believe the bonds purchase was illegal after the first of the year. He said the City is saying the tax act rendered the deal dead. “They know that’s not true.”
Mr. Spence said under the first analysis of mootness, the defendant’s motion clearly fails.
Mr. Smith said there is no pending deal to finance a high school and purchase bonds. To do that, he said, would require public meetings, votes and documents drafted. “Many things have to happen for a new bond issue.”
The Chancellor said it is possible a similar proposal may be resurrected in the future. But, he added, he can’t speculate on what might happen in the future. And with that, he granted the motion to dismiss.
Photo album from Court today by Jim Willis, Lakeland Currents: https://photos.app.goo.gl/HDzvwG7gxrLISxmH3
