Green Hills Mall TRG, LLC v. BakerSouth, LLC

709 F. App'x 792
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 22, 2017
Docket16-5758
StatusUnpublished
Cited by1 cases

This text of 709 F. App'x 792 (Green Hills Mall TRG, LLC v. BakerSouth, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green Hills Mall TRG, LLC v. BakerSouth, LLC, 709 F. App'x 792 (6th Cir. 2017).

Opinion

OPINION

McKEAGUE, Circuit Judge.

Defendant BakerSouth, LLC purchased property near a Nashville-area shopping mall. It then sent a letter to the mall’s owner, plaintiff Green Hills Mall TRG, LCC, saying that the property came with an easement that let it use the mail’s parking lot. Green Hills disagreed and sued for a declaratory judgment challenging BakerSouth’s title to the easement. The district court granted Green Hills’s motion after tracing BakerSouth’s chain of title and finding that one link — the heirs to a deceased lawyer who had held the mall-adjacent property as a trustee — lacked authority to sell the easement.

As this appeal was pending, BakerSouth and the beneficiaries of that deceased lawyer’s trust tried to mend this broken link. First, they had a state probate court appoint a successor trustee. Then, they had that successor resell the property and easement to BakerSouth. Green Hills responded by moving to dismiss this appeal as moot. For the following reasons, we deny the motion to dismiss and affirm the district court’s judgment in favor of Green Hills.

I

This case involves two properties: the lots BakerSouth claims to own and the lots Green Hills owns. In. 2013, BakerSouth bought property on which the City of Nashville formerly operated a public library. BakerSouth maintains that its deed to this property granted it a parking easement over Green Hills’s nearby parking lot. Currently, Green Hills uses the allegedly encumbered property for valet parking at its high-end shopping center. Baker-South’s purported easement would disrupt those services.

The issue in this case is BakerSouth’s claim to the easement. To evaluate its claim to the property, and thus the easement, the court must trace its chain of title. In the beginning, a now-terminated Tennessee corporation called Green Hills Village, Inc. — not to be confused with plaintiff Green Hills Mall — owned all of the property at issue here. In March 1966, Green Hills Village transferred the lots claimed by BakerSouth to Harlan Dodson, “as Trustee.” The deed transferring this property also reserved the disputed parking easement over Green Hills’s lots.

A few months later, trustee Dodson conveyed the lots and easement to the Metropolitan Government of Nashville, or “Metro” as the parties call it. Metro took the property subject to the condition that it would only use it to operate a public library. If Metro ever closed the library, title to the property reverted back to Dodson or “his successors and assigns.”

This reversion complicated matters after Dodson died in 1986 without appointing a successor. Metro still operated a library on the land, so no one bothered to replace Dodson. When the library finally closed near 2010, the property interests reverted under the deed but Dodson’s trusteeship remained empty.

Although Dodson had no successor trustee, he did, however, have three children who were his legal heirs. These heirs— who everyone agrees did not become trustees — entered the picture. After the reversion, they transferred some of the library lots and the parking easement to Thomas White. In 2013, White transferred the lots and the easement to BakerSouth.

Armed with the deed from White, Bak-erSouth demanded that Green Hills recognize its right to the easement — that is, to recognize BakerSouth’s purported right to use the mall’s valet parking for its property’s parking. After some correspondence, Green Hills filed this suit asking for a declaratory judgment that BakerSouth lacked title to the easement. BakerSouth countered, asking the court to declare that it owned both the easement and the lots it purchased. Both parties moved for summary judgment.

The district court granted Green Hills’s motion. It reasoned that the Dodson heirs did take title to the easement after the reversion — albeit only “bare, naked title.” The court then held, however, that the heirs could not transfer the easement to White because Tennessee Code § 35-15-707(b) required them to present the trust’s property to a state court, which would have to appoint Dodson’s successor as trustee.

The court only addressed BakerSouth’s right to the easement. It declined to determine whether BakerSouth owned the underlying lots because it concluded that Green Hills never contested BakerSouth’s ownership. Thus, the court found no case or controversy to resolve. BakerSouth now appeals the grant of Green Hills’s motion for summary judgment and the denial of its own motion.

While this appeal was pending, the beneficiaries of the Dodson trust, with support from BakerSouth, petitioned the Tennessee probate court to appoint a successor. The probate court appointed White — the original intermediary in the BakerSouth sale. White then resold the property and easement to BakerSouth. Touting this new deed, BakerSouth again wrote Green Hills, demanding that it recognize the easement.

Green Hills continued the fight for its valet parking, however. It moved the probate court to let it intervene in those proceedings. It also asked that court to set aside its order appointing White as trustee and to declare the 2016 conveyance from White to BakerSouth void. The court denied the motion, holding that Green Hills lacked standing to intervene. The Tennessee Attorney General also appeared in the probate proceedings, and has indicated its plans to assert that the trust is charitable under Tennessee law. Additionally, after Green Hills refused to recognize the new deed, BakerSouth filed another lawsuit in state court on May 7, 2017, seeking to quiet title to the easement based on the new deed. Green Hills, of course, is contesting this action.

Citing these events in probate court, Green Hills has moved this court to dismiss this appeal as moot. It argues that BakerSouth has conceded that the district court correctly determined that it did not own the property because BakerSouth is now participating in a probate process that accepts the trust’s continued ownership over the property as a premise. Further, Green Hills notes, BakerSouth has repurchased the property it claims to own in this suit. Thus, it argues, a case or controversy no longer exists. BakerSouth responds that pursuing its desired easement through a new avenue does not equate to a concession which renders this appeal moot. We could, it notes, reverse the district court and enter a judgment saying that BakerSouth has owned the land free and clear since 2013. If we did that, it seems, Green Hills’s maneuvering in state court would end.

During argument on this case, the panel suggested the parties attempt to resolve their differences through mediation. The parties accepted this suggestion and have been in mediation for the past few months. Although both the parties and the Sixth Circuit’s mediator have worked diligently to reach a settlement, none has been forthcoming. The mediator therefore returned the case to the panel for decision. We affirm the district court.

II

We address Green Hills’s motion to dismiss first. Contrary to Green Hills’s arguments, this appeal is not moot. A case only becomes “moot when the issues presented are no longer ‘live’ or the parties lack a legally cognizable interest in the outcome.” Powell v.

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Bakersouth, LLC v. Green Hills Mall TRG, LLC
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Bluebook (online)
709 F. App'x 792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-hills-mall-trg-llc-v-bakersouth-llc-ca6-2017.