Clark v. Stephen D. Lee Foundation


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Docket Number: 2002-CA-00197-SCT
Linked Case(s): 2002-CA-00197-SCT

Supreme Court: Opinion Link
Opinion Date: 12-02-2004
Opinion Author: Cobb, P.J.
Holding: Reversed and Remanded

Additional Case Information: Topic: Real property - Lease of sixteenth section land - Section 37-7-455 - Section 37-7-471 - Adequacy of consideration
Judge(s) Concurring: Smith, C.J., Waller, P.J., Easley, Carlson, Dickinson and Randolph, JJ.
Non Participating Judge(s): Diaz and Graves, JJ.
Procedural History: Summary Judgment
Nature of the Case: CIVIL - REAL PROPERTY

Trial Court: Date of Trial Judgment: 01-16-2002
Appealed from: Lowndes County Chancery Court
Judge: Jason H. Floyd, Jr.
Disposition: Entered summary judgment in favor of the Appellee ratifying a lease to sixteenth section land.
Case Number: 99-0592

Note: The motion for rehearing filed by Stephen D. Lee Foundation is granted. The original opinion is withdrawn, and this opinion is substituted therefor. Reversed and Remanded.

  Party Name: Attorney Name:  
Appellant: Eric Clark, Secretary of State, State of Mississippi




ALAN M. PURDIE JAN F. GADOW DION JEFFERY SHANLEY



 

Appellee: Stephen D. Lee Foundation, a Non-Profit Corporation KATHERINE S. KERBY  

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Topic: Real property - Lease of sixteenth section land - Section 37-7-455 - Section 37-7-471 - Adequacy of consideration

Summary of the Facts: The motion for rehearing is granted, and this opinion is substituted for the original opinion. The Stephen D. Lee Foundation, a non-profit corporation, filed a complaint to confirm leasehold title of certain sixteenth section land against Secretary of State Eric Clark, requesting that a lease contract entered into between the Foundation and the Board of the Columbus Municipal Separate School District be confirmed and ratified. The court entered summary judgment in favor of the Foundation. The Secretary of State appeals.

Summary of Opinion Analysis: The Secretary of State argues that the court erred in granting the Foundation's motion for summary judgment on the premise that the lease was based on adequate consideration and was valid. The Board of Trustees of the Columbus Municipal Separate School District leased the Lee land pursuant to section 37-7-471. Section 37-7-455 provides that land or buildings owned by a School District may be sold via sealed bids with the property going to the highest bidder for cash. Under section 37-7-471, school boards may dispose of land or buildings if doing so will serve certain stated objectives. The Board's minutes authorizing the lease tracks the language of section 37-7-471. However, the Secretary of State argues that Chapter 7 of Title 37 does not apply to sixteenth section lands. The only reasonable interpretation of these statutes is that they apply to property to which the school district actually holds title. School districts do not hold title to sixteenth section lands; rather, title to trust lands was granted by the federal government to, and resides in, the State. Leases have been consistently invalidated on constitutional grounds based on inadequacy of consideration. In this case, there are insufficient facts for a determination of the adequacy of the consideration expressed in the lease. The question of ownership of the home and value of the land must be determined by the trial court before any decision on adequacy of consideration for the lease of the land is made. Therefore, the summary judgment is reversed and remanded.


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