Judge sides with Hurley

Chancellor Frank V. Williams dismissed Dec. 21 a civil case brought by the 9th District Attorney General’s office against Loudon County Commissioner Julia Hurley.

Hurley, who represents Seat A in Lenoir City’s District 2, was accused of violating a state regulation that requires her to live in the district she represents.

Elected to commission in 2018, Hurley moved from her home at 406 W. 5th Ave., in District 2 to a home at 600 Yellowstone Drive in District 5 in 2019.

The state’s case was predicated from information provided by Commission Chairman Henry Cullen who, along with other commissioners, asserted Hurley vacated her seat when she moved out of her district.

Hurley’s attorney T. Scott Jones successfully argued the move was temporary for the purpose of a real estate investment and that it was always Hurley’s intention to return to her home in District 2.

Hearing the case in a temporary courtroom set up in Loudon City Hall, Williams made the decision following several hours of testimony.

A preemptive motion was made by Jones to dismiss the case before testimony. Nothing in the law prevents a commissioner from owning two pieces of property, Jones said, adding that it is impossible to look into the mind of the defendant to determine whether or not she intended to make her move permanent.

“It’s up to the voters to decide,” Jones said.

The motion to dismiss was rejected by Williams as premature. He ruled the case should proceed.

Assistant District Attorney Jason Collver argued that Hurley’s move from her 5th Avenue home was intended to be permanent and that she officially moved by June 2019.

By removing herself from the district Hurley effectively removed herself from office, Collver said.

The state agreed Hurley had subsequently returned to her house in District 2. The issue before the court was whether or not, during the period in question, she intended to sell the home on 5th Avenue and continue to live outside her district.

Video wasn’t enough

The centerpiece of the prosecution’s case was a video posted by Hurley to Facebook around the time she moved. In the video, Hurley can be heard saying several times that she had moved to a new home.

The state called Brooke Holmes, a former co-worker of Hurley, who signed a one-year lease to rent the home in District 2. Holmes said she understood that Hurley wanted to sell the home on 5th Avenue. Holmes said she even discussed purchasing the home from Hurley after a deal to sell the property for use as a “halfway house” fell through.

During cross-examination, Jones questioned whether Holmes, a licensed real estate agent, had seen written documents related to the sale of the property. Holmes said she had not. She also acknowledged she is the defendant in a lawsuit brought by Hurley over damage to the home on 5th Avenue.

Loudon County Trustee George “Chip” Miller was called to the stand to testify on whether he had advised Hurley that she could claim she was only temporarily residing outside her district.

He said he and several others he spoke with initially thought the home on Yellowstone Drive was within District 2. He also said he thought Hurley at first believed the home was in her district.

Miller said he discussed the implications of the out-of-district move with several people, including Hurley, during 2019. He said he knew of previous cases in which elected officials or judges had lived outside their districts temporarily.

Under cross-examination, Miller said he had been questioned by Tennessee Bureau of Investigation Special Agent Luke Webb but Miller said he did not know he was being recorded. He said he thought Webb had been “extremely misleading.”

Called to the stand, Webb said he had been tasked by the 9th Judicial District Attorney General’s office with investigating if Hurley was living outside her district. Webb said Miller informed him that Miller told Hurley it was OK to live outside her district as long as she was moving back.

Webb said he couldn’t remember whether or not he told Miller that he was being recorded.

When the recording of Webb’s interview was played for the court, there was no mention by Webb that he was recording the interview. During the interview, Webb and Miller discussed a number of subjects, including communication with Hurley.

Jones questioned Webb about how he determined residency. Webb replied that he had not investigated the definition of residency. He said he viewed the Facebook video, interviewed Hurley’s neighbors and pulled her utility bills. He said he also attempted to interview Hurley.

Jones followed up with questions about whether Webb had checked Hurley’s driver’s license, voting registration and credit reports. Webb said he had not checked those records.

Jones again asked Williams to dismiss the case. Williams again declined.

Flipping the house?

The defense then called witnesses to establish Hurley’s residency and her motivation for purchasing the property on Yellowstone Drive.

Loudon County Chamber of Commerce President Rodney Grugin testified that he knew Hurley from her involvement in the chamber. He also said he had delivered Christmas trees to her house on 5th Avenue in 2020 and earlier this year. He said he understood the house is her place of residence.

General Contractor Blane Chrisman told the court he visited Hurley’s new home on Yellowstone Drive shortly after she moved in to discuss painting and upgrades that would make the home more appealing to buyers. He said he thought Hurley intended to “flip” the home. He said he knows Hurley now lives at the home on 5th Avenue because he delivers contracts to her at the address.

Hurley took the stand to testify that she purchased the home on Yellowstone Drive, representing the seller and herself as buyer, for $330,000 with the intention of selling the property for a profit.

On cross-examination, Collver asked Hurley why she would sign a contract that indicated the home would be her primary residence.

Hurley said she intended to live in the house for at least a year so that she could get better terms on the bank loan. She insisted it was always her intention to sell the home.

“As a real estate agent what I do is buy and sell real estate,” she said.

Collver played a recording of a commission workshop where Hurley can be heard saying the residence was temporary. Williams ordered the recording entered into the record, possibly to be heard by another judge in case of future appeal.

Upon conclusion of the defense case, Williams rendered a verdict that the case was moot and dismissed. He said the move to Yellowstone Drive was not intended to be permanent.

“It seems clear and convincing that it was intended to be a temporary move,” he said.

Williams also said he thought the Facebook video was more an advertising vehicle for Hurley’s business than an admission of her long-term residency intentions.

Following the verdict, Hurley said she never had doubts she would be able to prove her case. She thanked voters in her district and said she looked forward to the 2022 election.

Jones said he thought the judge applied common sense, legal reasoning to the verdict.

Attorney General Johnson said he was glad the case had been concluded and hopes the state legislature can in the future provide more clarity to the issue of residency.

Commission Chairman Cullen had few words following the verdict.

“It is what it is,” he said.