Greenback and its fire departmen

According to quitclaim deeds notarized by Southeastern Title & Abstract Co. Inc., Peeler, acting as mayor, deeded two pieces of property to the fire department, of which he and his son-in-law were both board members.

The city began questioning the property transfer and voted to pursue legal action in February at its first meeting of the Board of Mayor and Aldermen since October 2018, following several meeting cancellations during the transition to new Mayor Dewayne Birchfield.

Not only did the city question the date of the donation, but minutes from past meetings showed that the property donation was only brought up once and never voted on as an ordinance, which would require two votes under Tennessee law.

Additionally, the city feared that land-use restrictions on the property might cause financial damages. “Talking to representatives of the state, by giving this property away, the city will lose all rights to grants, because it’s not in compliance,” Birchfield said, noting that the land was under a use restriction limiting it to recreation, but instead was given to the fire department. “We need to get it back, and that’s where we’re going to stand on that.”

Birchfield said he had tried to discuss the property with Fire Chief Ronnie Lett, but was told he could not discuss the issue.

Peeler could not be reached for comment; a call resulted in a message that his voicemail box had not yet been set up.

In March, the city filed a lawsuit requesting that the quitclaim deeds be nullified, the defendants pay further relief that the city can prove itself entitled to at trial, and that an order be filed with the Loudon County register of deeds to clarify the city’s ownership of the property.

The suit also calls for the court to deem that Peeler acted ultra vires (acting beyond one’s legal power or authority) and slandered the city’s title by filing the deeds, and that he be required to pay the city the total cost of its legal fees accrued in the lawsuit.

The response and counter-suit, filed on behalf of the fire department by former Greenback City Attorney James Scott, deny the accusations made in the original lawsuit and call for up to $250,000 in retributions from the city.

In the suit, the fire department seeks to “recover all damages expended based upon its reliance that the City would be a good municipal citizen and honor the contractual promise and word of its governing body.” It asks for aggravation, inconvenience and reputational damages, as well as monies lost, in an amount not to exceed $250,000.

In a statement late Saturday, Birchfield wrote: “I would like to reiterate to our citizens that I am doing everything in my power to bring our city back into compliance with the State of Tennessee to prevent an enormous loss of funding for our town.

“I can certainly think of a thousand things that our city could use $250,000 for. And not one of them is placating a frivolous and unjustified counter suit to cover the costs of a land transfer that was not handled according to State law in the first place,” the mayor said.