Sample Case Wins by Yost Robertson Nowak PLLC:

In re Brentwood Outpatient Ltd., 1991, 134 B.R. 267, affirmed 152 B.R. 727, affirmed in part, reversed in part 43 F.3d 256, certiorari denied 115 S.Ct. 1824, 514 U.S. 1096, 131 L.Ed.2d 745. Established that under Tennessee law, the county’s lien for property taxes also secures its right to pre-Bankruptcy petition penalties, interest and costs. However, under the Federal law in effect at the time of the decision, penalties and costs accruing after the filing of the Bankruptcy petition were not allowed on an oversecured property tax claim. Decision led to a change in the Federal statute (11 U.S.C. § 505(b)), so that all statutory penalties, interest, and costs are now allowed in an oversecured Bankruptcy claim for property taxes.

State ex rel. Davis, et al. v. ABC Brentwood Locksmith Service, et al., Not reported in S.W.3d, 2005 WL 2667042 (Tenn. Ct. App. Oct. 20, 2005) The Tennessee Court of Appeals held that a delinquent taxpayer cannot challenge the validity of an underlying personal property tax assessment through an Answer filed in the Delinquent Tax Suit. Taxpayer must raise legal issues relating to the underlying assessment by following the “payment under protest” procedure, and must raise factual issues relating to the underlying assessment by exhausting his administrative remedies through the county and state boards of equalization.

State ex rel. Davis, et al. v. A & F Construction, et al., Slip Copy 2009 WL 499421, No. M2008-COA-R3-CV (Tenn. Ct. App. Feb. 26, 2009), perm. app. denied, September 28, 2009. The Tennessee Court of Appeals held that the county’s statutory “first lien” for personal property taxes has priority over all claims, including even prior perfected purchase money security interests in the taxed property. Therefore, a secured creditor holding a prior perfected purchase money security interest must withhold and pay outstanding personal property taxes on its collateral before satisfying its own claim from the proceeds of an article 9 repossession sale of its collateral.

State ex rel. Davis, et al. v. Jesus Christ’s Church at Liberty Church Road, et al., Slip Copy 2011 WL 251212, No. M2009-02439-COA-R3-CV (Tenn. Ct. App. Jan. 13, 2011) Tennessee Court of Appeals applied the ABC Brentwood Locksmith Service decision to hold that a delinquent taxpayer could not raise legal and constitutional challenges to the underlying tax assessment in an Answer filed in the Delinquent Tax Suit, and also recognized that the Chancery Court has no statutory authority to waive interest, penalties, or costs.