Chancellor Walter Evans set a hearing for 10 a.m. Tuesday (12.19.17) to hear arguments on a motion by Lakeland attorneys to dismiss a lawsuit filed by a Lakeland couple to block a bond issue for a high school wing to the existing middle school.
The lawsuit, filed Friday (12.8.17) by Cary and Lillian Melton, seeks to block the lease revenue bonds approved by the Lakeland Board of Commissioners (BOC) and its Industrial Development Board (IDB) and force a referendum on any bond issue. The suit also alleged violation(s) of the Tennessee Open Meetings Act.
Representing the City are attorneys A C Wharton, former Memphis mayor, and Van Turner, Shelby County Commissioner, along with Lakeland City Attorney Chris Patterson and lawyers from his firm, Wiseman Bray PLLC, and Al Bright, who represents the IDB.
Link to story about lawsuit: https://lakelandcurrents.com/lawsuit-filed-against-city-idb-by-lakeland-residents/
The resetting of the hearing was made following a hearing Wednesday morning, where Mr. Wharton asked the court to dismiss the lawsuit, saying the City’s action had not harmed the Meltons and would result in significant harm to Lakeland and its citizens.
He said if at some point in the future there was a tax increase because of the bond issue approved by the Lakeland’s Board of Commissioners and Industrial Development Board, the Meltons could come back and refile their lawsuit.
Mr. Wharton said Lakeland has a deadline to issue the bonds prior to Jan. 1 because of recent federal tax legislation and not being able to proceed before then would cost the City and its residents an additional $1.3 million.
Robert L. J. Spence Jr., representing the Meltons, said he was not prepared Wednesday to argue against the motion filed by Lakeland. “I am in favor of an expedited schedule but I need more than 16 hours to prepare for a motion to dismiss.” He said he would work with opposing counsel to set up a plan, including expedited response from Lakeland on his discovery requests.
Chancellor Evans said he had not had time to read the multiple-page lawsuit or the motion to dismiss and could not make a determination on the motion to dismiss without having done so.
“This is a court of equity,” Mr. Wharton said. “There is no immediate harm to the plaintiff.”
Mr. Wharton referenced two statutes in his memorandum that would clarify the issue and resolve the case. “Bond issuance is in play here. There are no surprises in our motion. There are two statutes in play here. I’m sure he (Mr. Spence) read them and I’m sure he tested them.”
He added that Mr. Spence started this (the lawsuit). “There is no allegation of harm to the plaintiffs.”
Mr. Wharton said the matter is not as complex as it might look on the surface. He said the only determination required would be to look at the two state laws governing the issuance of bonds by municipalities and rule on whether Lakeland followed the law.
Mr. Spence argued that ruling on the issue raised in the motion to dismiss before he and his client have had a chance to respond would deny them due process.
Chancellor Evans asked how a delay on considering the motion to dismiss would harm Lakeland or prevent them from proceeding with the bond issue. Mr. Wharton explained that bond counsel could not proceed with the bond issue until he could certify there was no longer pending litigation that might affect the bonds and that the delay would cost Lakeland $1.3 million or about $200,000 per year in additional debt service.
In addition to the $1.3 million in costs the City could incur if the bond process is delayed, Mr. Wharton said the Lakeland children would not be able to get their school. “This is not a simple car accident.”
He said the lawsuit doesn’t specify what is happening (to the plaintiffs) or what will happen with the bond issue. “It’s clear as a matter of law (based on the two statutes), this does not require a referendum.”
The chancellor asked the lawyers on each side to confer outside the courtroom to come up with a schedule on how to proceed. Within 30 minutes, Lakeland lawyers said they had met and the chancellor had agreed to reset the matter for 9 a.m. Thursday (12.14.17). Mr. Spence later said that would conflict with his schedule and the chancellor agreed to set the matter on his docket for next week.
The Meltons were in the courtroom for the Wednesday hearing, sitting with Valerie Speakman, the attorney for the Arlington Community Schools, and Bryan Meredith, a lawyer with the Spence law firm. A number of Lakeland residents were in attendance along with Jim Atkinson, city manager; Jessica Millspaugh, city finance director; and Dr. Ted Horrell, Lakeland School System superintendent.
… Photos by Jim Willis, Lakeland Currents
