Baron Foreman v. DHP1, LLC

CourtMississippi Supreme Court
DecidedMarch 27, 2025
Docket2023-CA-01293-SCT
StatusPublished

This text of Baron Foreman v. DHP1, LLC (Baron Foreman v. DHP1, LLC) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baron Foreman v. DHP1, LLC, (Mich. 2025).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2023-CA-01293-SCT

BARON FOREMAN

v.

DHP1, LLC

DATE OF JUDGMENT: 11/06/2023 TRIAL JUDGE: HON. MARGARET ALFONSO TRIAL COURT ATTORNEYS: DEREK R. CUSICK RUSSELL SCOTT MANNING LEWIE G. “SKIP” NEGROTTO, IV COURT FROM WHICH APPEALED: HANCOCK COUNTY CHANCERY COURT ATTORNEY FOR APPELLANT: LEWIE G. “SKIP” NEGROTTO, IV ATTORNEY FOR APPELLEE: RUSSELL SCOTT MANNING NATURE OF THE CASE: CIVIL - REAL PROPERTY DISPOSITION: AFFIRMED - 03/27/2025 MOTION FOR REHEARING FILED:

BEFORE COLEMAN, P.J., MAXWELL AND CHAMBERLIN, JJ.

CHAMBERLIN, JUSTICE, FOR THE COURT:

¶1. We have repeatedly said that taking people’s property for failure to pay taxes is

difficult. We say so once again. The issues in this case center on whether the statutory

procedures for providing notice of the expiration of the redemption period for a tax sale were

satisfied by the Hancock County Chancery Clerk. Ownership of the land at issue changed

during the statutorily mandated time for notice of expiration of the redemption period for a

tax sale. The chancellor determined that the chancery clerk failed to satisfy the statutory

notice requirements and declared the tax sale void. This Court finds that the tax sale is void. Accordingly, the chancellor’s grant of summary judgment in favor of DHP1, LLC, is

affirmed.

FACTS AND PROCEDURAL HISTORY

¶2. The material facts are undisputed. In 2006, Emmett Hotard acquired “Lots 16 and 17,

Replat of Leisure Time Park Subdivision” in Hancock County. In 2007, The Peoples Bank,

Biloxi, Mississippi, entered into a loan agreement with Emmett, who used the two Leisure

Time lots as security for the agreement. Emmett eventually defaulted on the promissory note

with The Peoples Bank, incurred multiple federal tax liens and failed to pay his state ad

valorem property taxes on Lot 17. On August 27, 2012, at the Hancock County tax sale, Ken

Foreman purchased Lot 17.

¶3. On June 25, 2013, The Peoples Bank assigned its interest in the promissory note and

deed of trust to Eric Hotard, Emmett’s brother.1 Eric then initiated judicial foreclosure

proceedings. An Order of Judicial Foreclosure was filed in the chancery court on February

12, 2014, and recorded in the land records on February 24, 2014. The order found that

Emmett owed Eric the amount due under the promissory note, Eric was declared the first

lienholder on the property, and Nicholas Van Wiser was appointed special commissioner

with authority to advertise and sell the property. DHP1 purchased Lots 16 and 17 at a

foreclosure sale on April 16, 2014. The sole member of DHP1 is Eric Hotard.

1 A Corrected Assignment of Promissory Note and Deed of Trust was signed on October 4, 2013, due to a scrivener’s error in the June 25, 2013 assignment.

2 ¶4. On May 7, 2014, the chancery clerk sent a notice via certified mail to “HOTARD

EMMETT P” at “LEISURE TIME DR DIAMONDHEAD, MS 39525” to notify him that Lot

17 was sold for 2011 taxes to Ken Foreman and that “title to said land will become absolute

in [Ken Foreman] unless redemption from said tax sale is made on or before the 27th day of

August 2014.” This letter was returned to the clerk’s office on May 12, 2014, marked

“Return to Sender Insufficient Address Unable to Forward.”

¶5. Additionally, on May 7, 2014, the clerk’s office sent by certified mail two lienholder

notices of the tax sale and redemption period. One was sent to Eric’s address in Virginia.

Eric’s lienholder notice was delivered on May 12, 2014. The other lienholder notice of the

tax sale and redemption period was delivered to The Peoples Bank. Further, a notice of the

tax sale and redemption period, postmarked May 7, 2014, was sent to Van Wiser.

¶6. On May 9, 2014, the chancellor signed an Order of Final Judgment Approving

Special Commissioner’s Report that approved the foreclosure sale and authorized Van Wiser

to “execute, deliver and to cause to be filed” a deed to DHP1 for the foreclosed property,

“Lots 16 and 17, Replat of Leisure Time Park Subdivision[.]”

¶7. The record contains a copy of the notice of the tax sale and redemption period to

Emmett that is dated the “7th day of February 2014” and bears a notation of “served.” Under

the word “served” is the signature “A. Longfellow 385” and the date of May 20, 2014.

Although Emmett’s name and Leisure Time Drive address are typed on the notice, Van

Wiser’s address is hand written on the notice. Timothy Kellar, the chancery clerk, stated in

3 a deposition that the notice was served on Van Wiser by Longfellow, a sheriff’s deputy.

¶8. On May 28, 2014, the Special Commissioner’s Deed transferring ownership of the

property to DHP1 was recorded. Notice to Emmett of the maturity of the tax sale redemption

period was published in The SeaCoast Echo on July 9, 2014.

¶9. On August 27, 2014, the tax sale redemption period matured. A document entitled

“First Affidavit - Tax Sale” was filed on November 17, 2014, stating that three employees

of the clerk’s office had “made a diligent effort” to locate Emmett Hotard by searching the

tax collector’s land roll, the tax assessor’s homestead records, the telephone book and the

internet. A clerk’s conveyance of Lot 17 to Ken Foreman was recorded on November 21,

2014. In November 2017, Ken Foreman conveyed Lot 17 to Baron Foreman via quitclaim

deed.

¶10. On January 27, 2020, DHP1 filed this complaint to confirm and quiet title against

Baron Foreman alleging that the tax sale is void for failure to satisfy the statutory

requirements. Baron answered and counterclaimed that all statutory notice requirements

were satisfied and that he should be vested with perfect title. The parties entered into

discovery and deposed Kellar. Kellar testified that Emmett Hotard was the owner of record

until the Special Commissioner’s Deed was signed and, although statutorily entitled to notice,

did not find evidence in the clerk’s records that Emmett was served by mail or personal

service.

¶11. The chancellor granted summary judgment in favor of DHP1 on October 30, 2023,

4 finding that the clerk’s office failed to make a diligent inquiry in the land records when an

alternative and correct address for Emmett was “easily discoverable” on the Deed of Trust

with The Peoples Bank that encumbered the property. The chancellor noted other errors with

the notices sent out by the clerk’s office and declared the tax sale void. The tax deed to Ken

Foreman and the quitclaim deed to Baron Foreman were declared void, and Baron retained

a lien on the property for reimbursement of “all taxes and fees paid by him plus any and all

accrued interest[.]” Baron appeals this final order.

ISSUES PRESENTED

¶12. On appeal, Baron argues the following two issues:

I Whether the chancery court erred by holding that failure to provide Emmett Hotard with notice of forfeiture at an alternative address after he no longer had any interest in the subject property voids the tax sale.

II. Whether the chancery court erred by failing to hold that notice of forfeiture received by DHP1’s sole member via publication and certified mail within the statutory redemption period was insufficient to impart notice to DHP1 and validate the tax sale.

Issue one is dispositive, so this Court will not address the second issue.

STANDARD OF REVIEW

¶13. “In reviewing a chancellor’s grant or denial of” a motion for summary judgment, this

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