Opinion ID: 1918744
Heading Depth: 1
Heading Rank: 4

Heading: THE CHANCELLOR ERRED IN DISMISSING THE COMPLAINT PURSUANT TO M.R.C.P. 12(b)(1), 12(b)(6) AND 12(c).

Text: ¶ 25. The COPS issued in connection with each project were validated by the Chancery Court pursuant to Miss.Code Ann. § 31-13-5 (1990) which applies to ... every form of written obligation that may be now or hereafter legally issued by any ... municipality... Miss.Code Ann. § 31-13-3 (1990); See Cox v. Jackson Mun. Separate Sch. Dist., 503 So.2d 265, 268 (Miss.1987). Miss.Code Ann. § 13-13-5 requires that the issuer submit all papers involved in the financing to the State's Bond Attorney, who prepares an Opinion. The State's Bond Attorney is then to submit all legal papers along with his Opinion to the Chancery Court. The Clerk of the Chancery Court dockets the matter, and gives notice to the public. If on the day set for the validation hearing, there is no objection, the Chancellor is to enter a decree approving the validity of the bonds. If no written objection is filed to the validation of the bonds, certificates of indebtedness, or other written obligations which are being validated, by any taxpayer to the issuance of same, then the validation decree shall be final and forever conclusive from its date, and no appeal whatever shall lie therefrom. Miss.Code Ann. § 31-13-5 (1990). ¶ 26. No objection was filed by McBride or any other taxpayer to the validity of the COPS, and the Chancery Court entered Decrees of Validation. ¶ 27. Miss.Code Ann. § 31-13-7 (1990) provides that: [I]f the chancellor shall enter a decree confirming and validating said bonds and there shall be no appeal by either party from said decree, or if on appeal the supreme court enters its decree confirming and validating said bonds or other written obligations, the validity of said bonds or other written obligations so issued shall be forever conclusive against the county, municipality, or district issuing same; and the validity of said bonds or other written obligations shall never be called in question in any court in this state. Miss.Code Ann. § 31-13-7 (1990)(emphasis added). ¶ 28. This Court addressed the effect of validation proceedings In re Validation of $7,800,000 Combined Utility System Revenue Bond, Gautier Utility District, Jackson County, 465 So.2d 1003, 1011-13 (Miss.1985). There, this Court explained: First, we have a bond validation proceeding instituted in accordance with Miss. Code Ann. §§ 31-13-5 et seq. (1972). The purpose of such hearing is to consider all juridical questions of law or fact, or both, touching the legality and validity of the bonds. Legislative questions preceding the issuance of the bonds are beyond judicial review, either in the validation action or otherwise.       The purpose of the hearing is to lay at rest all questions regarding the legality of the bonds. All matters which, if litigated with results adverse to the issuing district, could upset the bonds must as a matter of common prudence be resolved before the bonds are validated ... ... A decree may not foreclose litigation of questions which as a matter of law were beyond the scope of the hearing. Therefore, the scope of the hearing must be sufficiently broad to consider all questions that need to be resolved before the bonds are sold ...       ... Collectively, [our cases] hold that, subsequent to the bond validation decree becoming final, taxpayers may not be heard to complain of the legality or constitutionality of any facet of the bond issue or the project to be funded. Section 31-13-7 coupled with common law notions of res judicata and collateral estoppel preclude such re-litigation. Id. ¶ 29. In her Opinion and Judgment, Chancellor Springer found that: All of the facts and circumstances alleged in McBride's complaint existed at the time of the Validation hearings and were therefore within the scope of the hearing. His due process rights have not been violated... Every issue raised in Mr. McBride's complaint could have been raised at the validation proceedings held in 1993 and 1994 on the cops for the Downtown Park Plaza and the Multi-Modal Transportation Center, respectively. He is raising questions about things which were in existence at the time of the validation proceedings, and to allow Mr. McBride at this late date to litigate issues which have been finally adjudicated in the validation proceedings flies in the face of the reason for the legislation concerning bond issues: to finally put to rest any questions on the legality of the bonds and the projects which they fund so that governmental entities can get on with the business at hand. Our case law is clear that Mr. McBride is equitably estopped from raising these issues two and three years after the validation hearing and the entry of the judgments validating the Certificates of Participation ... No public projects could ever be funded through bonds and certificates of participation if those who buy those governmental obligations have to worry about challenges years after validation proceedings. The validation proceedings constitute res judicata on every issue raised in Mr. McBride's complaint, and therefore his complaint should be and is hereby dismissed pursuant to M.R.C.P. Rule 12(b)(1) (lack of subject matter jurisdiction due to res judicata); Rule 12(b)(6) (failure to state a claim upon which relief can be granted), and Judgment on the Pleadings is granted to the Defendants pursuant to Rule 12(c). ¶ 30. Based on our case law, as well as statutory law, the Chancellor's Opinion was well reasoned and correct. The time to contest the validation of the COPS was at the validation hearings, not now. McBride could have raised every issue in his Complaint at that time. This assignment of error is meritless, and this case is affirmed.