The Tennessee Supreme Court will hear oral arguments this week in Knoxville, Tennessee, on a case that will decide legal issues that could dramatically alter Tennessee law and practice regarding foreclosures and title to foreclosed real properties.
The arguments will take place on September 6, at 8 a.m. CT/9 a.m. ET, in the matter of Terry Case v. Wilmington Trust, N.A., et. al.
In the case at issue, Terry Case v. Wilmington Tr., N.A. as Tr. for MFRA 2014-2, No. E202100378COAR3CV, 2022 WL 2313548 (Tenn. Ct. App. June 28, 2022), the Court of Appeals ordered recission of a foreclosure sale based on a violation of the notice requirements in a deed of trust despite no harm resulting to the borrower. The associations argued in their brief that if the Court of Appeals’ decision stands, Tennessee would be only one of a few states allowing recission of foreclosure sales, which would create clouds on title for foreclosed properties for up to six years.
If this decision stands, one effect could be that sales of foreclosed properties could, possibly, be frozen for those six years immediately following a foreclosure, since the status and validity of the title to the property would be subject to challenge during that time.
David Anthony will represent the Tennessee Bankers Association and the Tennessee Mortgage Bankers Association. Both groups recognized the importance of the issues to be decided and the potential impact of the decisions on the banking and mortgage lending industries, and, in May 2023, these industry groups submitted an amicus brief to the Supreme Court, arguing that if the Court of Appeals ruling is upheld, Tennessee would be only one of a few states allowing recission of foreclosure sales, which would create clouds on title for foreclosed parties up to six years.
Amicus curiae, Latin for “friend of the court,” is a role that allows an individual with expertise and a deep understanding of the legal issues involved in a case to provide valuable insights to the court. In this significant legal matter, Exo Legal and these industry groups will offer their wealth of knowledge and experience to bear on behalf of the court to ensure a well-rounded and informed perspective.
The hearing will be at the U.S. Post Office & Courthouse, 505 Main Street, 2nd Floor, Knoxville, Tenn. The arguments will also be live streamed, which can be viewed by clicking here on the Case v. Wilmington webpage, or on the Tennessee Courts’ YouTube page at: www.youtube.com/@TNCourts/featured.