Andrea Scott et al v. Carlton J. Ditto et al.

This action involves a dispute between the holders of conflicting claims to the ownership of a residential lot in Chattanooga. The City sold the property at a delinquent tax sale. Unbeknownst to those involved in the tax sale, the property had earlier been sold at a foreclosure sale conducted by the holder of a deed of trust on the property. After a dispute arose between Andrea Scott, who had bought the property from a successor to the purchaser at the foreclosure sale, and Carlton J. Ditto, who bought the property at the tax sale, Scott filed this action against Ditto and others to quiet title to the property. Ditto filed a counterclaim. He also filed a cross-claim against several of the defendants. The trial court granted Scott summary judgment based on its determination that she was a bona fide purchaser without notice of the tax sale to Ditto and that she had recorded her deed first. The trial court dismissed Ditto’s cross-claim. We affirm the trial court’s dismissal of the cross-claim against the lender and others, because Ditto does not have standing to challenge the foreclosure sale. With respect to the trial court’s grant of summary judgment to Scott, we hold that the evidence presented by Ditto in opposition to summary judgment establishes a genuine issue of material fact as to whether Scott had notice of Ditto’s interest in the property prior to her purchase of that property. Accordingly, we vacate the trial court’s grant of summary judgment and remand for further proceedings.