Eric Clark, Secretary of State, State of Mississippi v. Stephen D. Lee Foundation, a Non-Profit Corporation

Summary

The Mississippi Supreme Court, on rehearing, reversed and remanded a summary judgment ratifying a lease of sixteenth section land to the Stephen D. Lee Foundation. The court held that the record was insufficient to determine the adequacy of consideration and directed the trial court to determine ownership of the Lee Home, the market value of the land, and the adequacy of consideration for the lease.

Holdings

1. Chapter 7 of Title 37 applies to property to which a school district actually holds title and does not authorize disposition of sixteenth section land, because title to sixteenth section trust land resides in the State rather than the school district.
2. The record was insufficient to determine whether the lease consideration was adequate, and the chancery court erred in resolving that issue on summary judgment.
3. Summary judgment for the Foundation was improper because material factual issues remained concerning ownership of the Lee Home, the market value of the land, and the adequacy of consideration.

Questions Presented

1. Whether the chancery court erred by granting summary judgment based on its conclusion that the 1999 lease of sixteenth section land was supported by adequate consideration.
2. Whether Mississippi Code sections 37-7-471 through 37-7-483 authorize a school district to dispose of sixteenth section trust land.
3. Whether the record was sufficient to determine ownership of the Stephen D. Lee Home, the market value of the leased land, and the adequacy of consideration.

Disposition

reversed_and_remanded