Earl Thacker v. Shapiro & Kirsch, LLP., Paul Abraham and the Knoxville News Sentinel

354 S.W.3d 733, 39 Media L. Rep. (BNA) 1974, 2011 Tenn. App. LEXIS 326
Court of Appeals of Tennessee·Decided June 20, 2011·No. E2010-01158-COA-R9-CV·Published

Opinion

OPINION

HERSCHEL PICKENS FRANKS, P.J.,

delivered the opinion of the Court,

in which CHARLES D. SUSANO, JR., J., and D. MICHAEL SWINEY, J., joined.

In this action the plaintiffs sued the substitute trustee who conducted a foreclosure sale, alleging that notice of foreclosure, as required by the Statute, had to be published in a newspaper located in the county where the land was located. The Knoxville News Sentinel intervened in the case since it had published the foreclosure notice, but the Trial Judge, responding to a motion for summary judgment, held that the Knoxville News Sentinel did not have a nexus to Roane County and that a proper notice would have been required to be placed in the Roane County newspaper. The Knoxville News Sentinel appealed, and on appeal we reverse the Judgment of the Trial Court and hold that the statutorily required notice was properly placed in the Knoxville News Sentinel.

Background

This suit arises from a foreclosure sale that occurred in Roane County, Tennessee on March 8, 2007. The sale was held by defendant Shapiro & Borsch, LLP (S & K), as substitute trustee. Prior to the sale, S & K, in its capacity of substitute trustee, had placed a notice of the pendency of the sale in the Knoxville News Sentinel, which was published in that newspaper on February 15, 2007, February 22, 2007 and March 1, 2007.

Plaintiffs/appellees, Earl and Irinia Thacker were the owners of the property, located in Roane County, that was foreclosed. Plaintiffs in this suit claim their property was bought at the foreclosure sale for $100,608.01 and that the purchaser resold the property eight months later for $164,067.00. Plaintiffs based their claims on various theories of liability. 1

Plaintiffs’ claim against S & K was based on the fact that S & K had placed the foreclosure notice in the Knoxville News Sentinel rather than the Roane County News. The complaint avers the Roane County News is the only newspaper published in Roane County. Plaintiffs contend that, pursuant to Tenn.Code Ann. § 35-5-101 (a), S & K was required to advertise the foreclosure sale in that paper, and not in a newspaper published in another county, such as Knox County. Plain *735 tiffs aver they are entitled to damages based on Tenn.Code Ann. § 35-5-107. 2

After the suit was filed, the Knoxville News Sentinel, through its Vice President, Business Manager, Paul Abramson, moved for Leave to Intervene pursuant to Tenn. R. Civ. P. 24.02 with an Intervening Petition. The basis for the News Sentinel’s motion, as set forth in its pleadings, states that plaintiffs’ contention was an erroneous interpretation of the statute which could lead to significant damage to the mortgage industry and the “legality of a number of foreclosure sales could be adversely impacted thereby.” In response to the motion, the Trial Court entered an order permitting the intervention of Paul Abraham and the Knoxville News Sentinel in the case.

The intervenors then filed a Motion for Summary Judgment and argued that the plain meaning of the statute, as a matter of law, was clear and unambiguous and that the word “publish” as used in the statute meant “to make known to people in general or to bring before the public or making something known to the public for a particular purpose.” Further, the intervenors contended that “the word ‘publish’ in the statute does not mean ‘print’ ”. The petition asked that the Trial Court find as a matter of law that the foreclosure notice at issue was legal within the provisions of the statute.

The Trial Judge, upon hearing the motion, held that “the legislature intended that ‘published in the county’ means more than circulate, and further that the legislature intended that a ‘newspaper published in the County where the sale is to be made’ means a newspaper whose nexus or main office is located in the County where the sale is to be made, otherwise commonly known as a local newspaper.” The Trial Court explained that the Knoxville News Sentinel has its nexus or main presence in Knox County, but further found that the Knoxville News Sentinel is a paper of general circulation in Roane County where the property at issue is located. However, the Trial Court concluded that TenmCode Ann. § 35-5-101 (a) required that notice of a foreclosure sale be published in a Roane County newspaper, and the publication in the Knoxville News Sentinel was not in accordance with the statutory requirement.

The only issue before this Court on this interlocutory appeal is the interpretation of Tenn.Code Ann. § 35-5-101(a), which is a question of law, which this Court reviews de novo without any presumption of correctness given to the conclusions of the trial court. As our Supreme Court observed in City of Harriman, Tennessee v. Roane County Election Commission, et al., 354 S.W.3d 685 (Tenn.2011).

“The construction of a statute and its application to the facts of a case are questions of law, which we review de novo.” Larsen-Ball v. Ball, 301 S.W.3d 228, 232 (Tenn.2010). When construing a statute, our aim is to give the statute the effect intended by the legislature without unduly restricting or expanding the statute’s intended scope. Id. (quoting Owens v. State, 908 S.W.2d 923, 926 (Tenn.1995)). “We find the General Assembly’s intent in the plain and ordinary meaning of the statute’s language if the language is unambiguous.” State v. Marshall, 319 S.W.3d 558, 561 (Tenn.2010).

The statute under consideration, Tenn. Code Ann. § 35-5-101(a) provides:

*736 (a) In any sale of land to foreclose a deed of trust, mortgage or other lien securing the payment of money or other thing of value or under judicial orders or process, advertisement of the sale shall be made at least three (3) different times in some newspaper published in the county where the sale is to be made.

The intent of the statute is clear, it serves to provide reasonable notice to anyone who may be or become interested in the sale of the property.

The genesis of the present statute was first enacted in 1855-1856 Acts, Chapter 83, section 1 as follows:

Section 1. Be it enacted, by the General Assembly of the State of Tennessee,

Free access — add to your briefcase to read the full text and ask questions with AI

Earl Thacker v. Shapiro & Kirsch, LLP., Paul Abraham and the Knoxville News Sentinel, 354 S.W.3d 733, 39 Media L. Rep. (BNA) 1974, 2011 Tenn. App. LEXIS 326 (Tenn. Ct. App. 2011).

354 S.W.3d 733 (Earl Thacker v. Shapiro & Kirsch, LLP., Paul Abraham and the Knoxville News Sentinel) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

City of Harriman, Tennessee v. Roane County Election Commission
354 S.W.3d 685 (Tennessee Supreme Court, 2011)
State v. Marshall
319 S.W.3d 558 (Tennessee Supreme Court, 2010)
Larsen-Ball v. Ball
301 S.W.3d 228 (Tennessee Supreme Court, 2010)
Owens v. State
908 S.W.2d 923 (Tennessee Supreme Court, 1995)