City attorney outlines next steps after chancellor orders special master in TMG tax-sale matter

John Cleveland, identified to the board to provide a legal update, said a chancery court judge granted in part the city’s motion for judgment in the tax-sale litigation involving a taxpayer identified as Swanfried and ordered a tax sale process to proceed.

Cleveland told commissioners the chancellor appointed Teresa Schoate, the clerk and master, as a special master to conduct a hearing to determine the amount of delinquent taxes. He said he had proposed a stipulation on the tax amounts to avoid that stage but received word from the taxpayer’s attorney within the last half hour that the taxpayer would not agree. Cleveland said that will require a clerk-and-master proceeding, a report to the chancellor, and then a hearing before the chancellor on whether to accept that report; the taxpayer will likely seek a full hearing and could file an interlocutory appeal at any stage.

Cleveland estimated timelines are uncertain and said he could not confidently predict when a sale would occur. He offered a ballpark of “five or six months” but cautioned the process could take longer if the taxpayer files appeals or demands further hearings. He also reported the city is owed roughly $850,000 in total (including interest, penalties and attorneys’ fees) and that the City’s portion is “just a little under $300,000.”

Commissioners asked procedural questions about appeals and whether the chancellor retains authority; Cleveland explained the statutory process allows the judge to consider each step and noted there is not a guaranteed appeal right short of final judgment but that a lawyer could file interlocutory appeals that delay the sale. No formal action was taken; the matter remains in active litigation.