Couple files multi-million dollar
lawsuit against county
By Thomas Wilson
STAR STAFF
twilson@starhq.com
An Elizabethton couple alleges Carter County
government officials "weaved a web of destruction and despair"
in a multimillion-dollar lawsuit involving the couple's purchase
in December 2002 of the former Seiler office building immediately
adjacent to the county courthouse.
Filed in U.S. District Court in Greeneville,
the lawsuit names County Mayor Dale Fair, Chancery Court Clerk
and Master Charlotte McKeehan, the county government and all
24 county commissioners both individually and in their capacities
as elected officials.
Plaintiffs Janet and Ed Peters allege their civil
rights have been violated by county officials after they purchased
the building located at 100 Courthouse Square at a public
auction for $90,000 bid plus a buyer's fee of $4,500. The
plaintiffs allege the special master's deed given to Janet
Peters was an "unmarketable, improper deed", saying the Seiler
building had only 2.6 feet of road frontage rather than 50
feet indicated in the deed and auction advertisement.
The lawsuit also names Jim Woltz and Ken Farmer,
of Woltz and Associates, who conducted the auction. The lawsuit
states the Woltz advertisement for the auction used the 50-foot
street frontage stated in the deed of record and did not include
any mention of the 2.6 feet of street frontage of the property.
Janet Peters said she was unaware the property was landlocked
or that there were any questions regarding the property line
when the auction occurred.
The suit states that Janet Peters paid off and
closed the property on Feb. 18, 2003, "despite a concerted
effort by the defendants, especially Special Master Charlotte
McKeehan and Mayor Dale Fair to keep her from closing." The
lawsuit alleges, "Mayor Fair and Ms. McKeehan used the power
of their office and their agents to weave a web of destruction
and despair" against the plaintiffs.
According to an heirs and administrators deed
in the county Register of Deeds office, the late Dayton Seiler
sold the property to seven family members, each of whom took
1 one-seventh interest in the property. The deed, dated Dec.
30, 1994, describes the property as being a lot fronting 50
feet on the north side of Forge Street (East Elk Avenue).
According to the property tax identification card on file
at the Assessor of Property's office, the lot's dimension
is listed at 50 feet-by-70 feet. There is no mention of encroachment
on the courthouse property in the deed.
According to the complaint, McKeehan contacted
Janet Peters in January 2003 and told her the deed was ready.
On Jan. 29, 2003, she went to the Clerk and Master's office
and realized McKeehan was offering her an incorrect deed,
according to the lawsuit.
The lawsuit alleges McKeehan refused to issue
Janet Peters a property deed, violated the terms of the sale
and breached the contract she signed with the plaintiff and
Woltz and Associates. "Therefore when looking at all of Ms.
McKeehan's actions, it is obvious that she kept part of the
plaintiffs' property for the courthouse," the lawsuit alleges.
However, according to a copy of an opinion of
title of Dayton Seiler estate signed by attorney Richard Norris,
the southwest corner of the Seiler property encroaches on
the courthouse property. The opinion of title includes reference
to a survey done by Dennis B. Pierce and dated May 2, 2002
indicating the Seiler property encroaches on the courthouse
land. The complaint alleges Pierce erroneously or negligently
changed a 50-foot street frontage on East Elk Avenue to 2.6
feet.
Citing a deed filed in 1851 of the present county
courthouse building, the lawsuit states the existing building
or land has never encroached on the courthouse property.
The lawsuit also alleges the plaintiffs were
harassed by Fair during a closed-door meeting in the county
mayor's office regarding the ownership of the property. The
plaintiffs' complaint also reports another alleged incident
of harassment during a meeting with Fair and the county Building
and Grounds Committee.
The complaint alleges Committee Chairman Al Meehan
said during the meeting that (Peters) would have to put a
museum in front of the building and "that was the only way
he would agree for her to have it." Janet Peters later tried
to obtain a copy of the minutes of the meeting she attended
but was told no minutes existed, according to the lawsuit.
The complaint also states Ed Peters received
a telephone call from Fair on Dec. 23, 2003 regarding the
county's possible purchase of the property. When Ed Peters
said he did not buy the property to sell, the lawsuit alleges
Fair "threatened going through condemnation" to acquire the
property.
The plaintiffs faced a threat of condemnation
by the county government if they did not close on the contract
and lawsuit from the Seiler estate if Janet Peters defaulted
on the contract.
The plaintiffs allege the defendants have engaged
in breach of contract, misrepresentation, intentional infliction
of emotional distress and common law negligence. The suit
sets forth 18 separate allegations against the defendants
including violation of the 5th and 14th amendments by depriving
the plaintiff of her property without due process of law,
breach of contract, as well as common law acts of civil conspiracy,
negligence and retaliation.
The Peters' attorney, Sheryl C. Rollins, of Knoxville,
filed the suit on Wednesday. County attorney George Dugger
acknowledged Thursday morning that he had received a copy
of the complaint but declined to comment on the lawsuit.
Rollins also declined to comment on the case
when contacted by the Star on Thursday afternoon.
The lawsuit asks the court for actual compensatory
and punitive damages totaling $18.5 million.