State of Tennessee, et al. v. 1998 Deliquent Taxpayers

This appeal stems from an action filed by the State of Tennessee, in its own behalf and for the use and benefit of Hamilton County and certain municipalities ("the state"), against property owners (collectively "the defendants") who had not paid their 1998 real estate taxes. Following the entry of a default judgment as to certain property, a delinquent tax sale was conducted at which Carlton Ditto and Positive Impact, Inc. ("the purchasers") bought a parcel of land. The purchase, however, was subsequently voided because the Hamilton County Property Assessor ("the Property Assessor") inadvertently reflected someone other than the true owner on its property rolls. As a consequence of this mistake, the true owner of the property was never made a party to the delinquent tax suit. The purchasers sought compensation for interest on the bid amount and the cost of recording the decree of sale. The purchasers also sought damages for the state's negligence. The trial court awarded interest on the bid amount and the cost of recording the decree, but refused to award damages for negligence. The state appeals. We affirm.