NASHVILLE, Tenn. — A lawsuit which would prevent the Tennessee Comptroller's Office from taking over the finances of Mason, Tennessee, was heard in the Davidson County Chancery Court in Nashville Wednesday by state Chancellor Anne Martin.
According to Van Davis Turner Jr., one of Mason's attorneys on the case and president of the NAACP Memphis chapter, the town is seeking a temporary injunction against the Comptroller's Office which would allow Mason to retain control over its finances.
"We need a more reasonable payback option for the town's debt," Turner said. "One that won't strain Mason's finances, and that is corrective instead of punitive."
Tennessee Treasury Comptroller Jason Mumpower announced March 17 that his office would be taking over the majority-Black town's financial oversight after "years of mismanagement."
One of the points of the lawsuit is a provision that the Chancery Court would declare the Comptroller's oversight of every expenditure over $100 in Mason to be a violation of Tennessee code 9-21-403(c), which was invoked by the Comptroller's Office when they announced the planned takeover.
This law governs the state's authority over budget approval.
The state argued that the Chancery Court does not have the jurisdiction or authority to make such a declaration, and should deny the request for an injunction.
Martin contended that the Chancery Court would have the authority to "create solutions" in the case, according to Turner, and the town is not conceding the point that this court would be able to declare violations of state law.
"[Martin] was well prepared to hear this case," Turner said. "She reviewed all of the documentation and provisions under her authority and did not buy the State's argument that she lacked the jurisdiction in this case."
Martin has asked the town to specify the provisions they are seeking under Tennessee Civil Procedure Rule 65, which outlines state procedures for civil injunctions.
Post-hearing briefs are scheduled for Monday, April 11 and Tuesday, April 12. According to Turner, Martin wants to make a ruling in the case before Good Friday, April 15.
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The state has also strongly contended that any claims of mistreatment towards Mason based on the town's demographics are "baseless."
“The Town’s baseless allegations that any act by the Comptroller has been motivated by the demographics of the Town’s government officials are inflammatory and merely distract from the Comptroller’s statutory purpose,” The Comptroller's Office said in a legal response.
The full legal response from the Comptroller's Office can be viewed here.
Mason wrote in their lawsuit that the Comptroller's Office's planned oversight of expenditures is "incongruous" given the fact they've taken steps to improve their financial situation on their own.
Van Buren County, Tennessee, and Jellico, Tennessee, two communities which have seen Comptroller oversight since 2013, have received much more leniency and latitude from the state, despite worse financial situations than Mason, the lawsuit alleges.
Van Buren County has a 96% white demographic while Jellico is 93% white.
Mason is close to the site of Ford's $5.6 billion Blue Oval City project, which would create thousands of jobs and provide a major boost to the town's economy.