Rebuild Am., Inc. v. Colomb
| Decision Date | 09 August 2022 |
| Docket Number | 2021-CA-00213-COA |
| Citation | 344 So.3d 864 |
| Parties | REBUILD AMERICA, INC., Appellant v. Mark A. COLOMB and My Brother's Keeper, Appellees |
| Court | Mississippi Court of Appeals |
ATTORNEY FOR APPELLANT: LEWIE G. "SKIP" NEGROTTO IV
ATTORNEYS FOR APPELLEE EDWARD BLACKMON, Canton
EN BANC.
GREENLEE, J., FOR THE COURT:
¶1. This appeal arises from the Hinds County Circuit Court's judgment affirming the county court's dismissal of Rebuild America Inc.’s ("Rebuild") complaint for unlawful entry and detainer and the county court's denial of Rebuild's motion for findings of fact and conclusions of law. We find that the county court erred under Rule 52 of the Mississippi Rules of Civil Procedure by not providing findings of fact and conclusions of law after being requested to do so by Rebuild. We therefore reverse the circuit court's judgment affirming the county court's orders and remand this case to the circuit court with instructions for it to effectively remand the case to the county court to conduct a hearing on the record and provide specific findings of fact and conclusions of law.
¶2. On August 29, 2005, Wachovia Bank, as custodian for Sass Muni V. Dir. ("Wachovia"), purchased property located at 500 E. Woodrow Wilson, Lot M, Jackson, Mississippi, 39216 ("property") for $93.05 at a Hinds County tax sale. Wachovia received a tax deed from the clerk of the First Judicial District of the Hinds County Chancery Court on September 10, 2007; however, the tax deed was not recorded until October 1, 2007. On October 31, 2007, U.S. Bank National, as successor in interest to Wachovia, transferred its interest in the property to Rebuild by a quitclaim deed and assignment. On November 7, 2007, Rebuild received and recorded the quitclaim deed with the clerk of the Hinds County Chancery Court.
¶3. On September 26, 2007, before Wachovia's tax deed was recorded, Mark A. Colomb purchased the same property at an IRS lien sale. The property previously had been owned by Marcus K. Jackson, M.D., who had failed to pay his federal taxes. The IRS recorded eight tax liens on the property between 2001 and 2004 and enforced those liens to collect the unpaid taxes by selling it to Colomb for $85,000. After the requisite period for Jackson's redemption had expired, on May 14, 2008, Colomb received a quitclaim deed to the property, which he recorded in the Hinds County Chancery Court Clerk's office on August 21, 2008. The Hinds County land records show that Colomb paid the annual property taxes from 2009 forward. At the time the complaint was filed in this case, a business named My Brother's Keeper was the tenant occupying the property.
¶4. On May 17, 2016, Rebuild sent a letter to Colomb demanding possession of the property. After Colomb failed to tender possession, on May 1, 2017, Rebuild filed a complaint for unlawful entry and detainer against Colomb and "the current tenant" in the Hinds County County Court. In its complaint, Rebuild alleged that it owned the property and that Colomb refused to tender possession of the premises, thereby unlawfully withholding possession of the property.
¶5. While litigation was pending, Colomb died, and the county court ordered that his Estate be served.2 Even though it had not yet been properly served, on November 22, 2017, the Estate filed a "Brief in Opposition" to Rebuild's complaint for unlawful entry and detainer.3 In its brief, the Estate contended that Rebuild did not have standing to file suit because Rebuild failed to file its complaint within three years, as required by Mississippi Code Annotated section 11-25-103 (Rev. 2019).4 The Estate argued that Rebuild had only three years to seek possession and that its 2017 lawsuit was untimely. The Estate also contended that Rebuild did not have valid title to the property and that the lawsuit was not about possession but about title. The Estate informed the court that Rebuild had previously filed a similar suit in the Hinds County Chancery Court in 2007 (Cause No. G-2007-2198) against the previous owners, including Marcus Jackson.5 In the chancery court proceedings, Rebuild sought possession of the property and claimed that the IRS tax sale was void. But after the chancery court denied Rebuild's motion for summary judgment in January 2010 because there was a genuine issue of material fact as to whom had valid title, Rebuild abandoned that lawsuit and it was dismissed without prejudice in 2011.
¶6. On November 23, 2017, and November 30, 2017, Rebuild filed memorandum briefs with the county court in support of its complaint. Rebuild argued that the Estate had waived any defense of lack of personal jurisdiction and that the chancery clerk's tax sale conveyance granted the right of immediate possession regardless of adverse claims to title under Mississippi Code Annotated section 27-45-23 (Rev. 2017).6 Further, Rebuild argued that the IRS did not have any interest in the property at the time of its deed to Colomb because it only could convey what it owned, which was merely a "Certificate of Sale of Seized Property" issued on October 15, 2007. Also, Wachovia's tax deed of October 1, 2007, pre-dated that certificate. Thus, Rebuild argued that the IRS had no interest in the property, which was now owned by Wachovia. Rebuild further argued that there was no three-year statute of limitations on the filing of an unlawful entry and detainer action in section 11-25-103, as the Estate suggested. Rebuild pointed to the use of the language "may" in the statute and argued that it merely gave Rebuild the option of filing within that time if it wanted to ensure that no challenge to its tax title could be made thereafter. Rebuild argued that it had one year from the date of the denial of possession to file suit under Mississippi Code Annotated section 11-25-101 (Rev. 2019).7 Because it sent Colomb a letter on May 17, 2016, seeking possession, Rebuild argued that it timely filed suit within one year of Colomb's refusal to comply.
¶7. On March 1, 2018, the county court heard arguments on the matter.8 According to Rebuild, "[a] hearing was held on [the] complaint ..., [a]nd the [county] court relied solely on argument and exhibits presented by the parties in their respective briefs." There is no record or transcript of the hearing. In a bench ruling, the county court dismissed Rebuild's complaint with prejudice.
¶8. On April 18, 2018, Rebuild filed a "Motion For Findings of Fact and Conclusions of Law," pointing out that no record of the proceedings had been made and that the proposed order on the bench ruling did not contain any findings of fact or conclusions of law. The Estate responded that although Rule 52 of the Mississippi Rules of Civil Procedure stated that if a matter is tried without a jury, the court shall issue findings of fact and conclusions of law, the court dismissed Rebuild's complaint as a matter of law. The court did not hear testimony and decided the case based on the arguments of counsel and the pleadings.
¶9. The county court held a hearing on Rebuild's motion and then denied the motion by a written order on May 20, 2019. There was no record of these oral arguments either. Thereafter, on May 23, 2019, the county court issued a written order dismissing Rebuild's complaint. The order did not include findings of fact or conclusions of law and did not provide guidance as to why the court dismissed the complaint.
¶10. On June 19, 2019, Rebuild filed a notice of appeal with the Hinds County Circuit Court.9 In a brief dated December 30, 2020, Rebuild did not request oral argument and made the same arguments to the circuit court that it had presented to the county court.
¶11. On December 31, 2020, the circuit court affirmed the county court's ruling, noting that the county court had heard the arguments of counsel and reviewed all documents received into evidence, including the tax assessor's and tax collector's documents and chancery court's orders in cause number G-2007-2198. The circuit court affirmed the orders without making any further findings of its own.
¶12. On January 11, 2021, Rebuild filed a motion for rehearing, pointing out that the circuit court had issued its ruling just one day after Rebuild had filed its brief and before the Estate filed any responsive brief. Rebuild argued that the only evidence in the record confirmed that Rebuild had good title and that the IRS had no interest in the property when it issued a quitclaim deed to Colomb. Rebuild also argued that the circuit court had no authority to consider any argument contrary to Rebuild's contentions because the Estate had not filed a responsive brief. Given that there were no findings of fact or conclusions of law that would show the basis for the county court's ruling, Rebuild pressed its argument that it had a valid tax deed and was entitled to possession, and Rebuild again requested the circuit court to reverse the county court's orders.
¶13. On January 28, 2021, the circuit court denied Rebuild's motion for rehearing, pointing out that Rebuild had only asked if briefs would be required, to which the court responded they would not but that Rebuild could bring any relevant law to the court's attention if it desired. Rebuild chose to do so, but the circuit court still denied its motion for rehearing.
¶14. In the appeal before this Court, Rebuild raises the following issues: (1) whether the circuit court erred by affirming the county court's order dismissing Rebuild's complaint with prejudice, and (2) whether the circuit court erred in affirming the county court's order denying Rebuild's motion for findings of fact and conclusions of law. After reviewing the record, we reverse the circuit court's orders and remand this case to the circuit court with instructions for it to remand the case to the county court to conduct a hearing on the record and provide specific findings of fact and conclusions of law.
¶15. When reviewing an appeal from a county court judgment, ...
To continue reading
Request your trial