Mississippi Supreme Court dismisses Merit Health’s appeal

Published 1:01 am Friday, March 23, 2018

NATCHEZ — Mississippi’s highest court on Thursday dismissed an appeal by Merit Health Natchez that sought a reduction of approximately $230,000 in real and personal property assessed to the hospital.

The Mississippi Supreme Court affirmed a ruling by a lower court from June 2016 that dismissed the case because the hospital had not posted an appeal bond necessary to proceed with the complaint.

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An appeal bond should amount to twice the dollar amount of what is in dispute, according to Supreme Court documents. Given the amount of tax money disputed between the hospital and the county, Merit Health would need to post a bond totaling approximately $460,000.

The original lawsuit stemmed from a dispute over the hospital’s tax assessment, with the hospital arguing it owed less money than what the county required.

After the hospital appealed the assessment, the court said the hospital must pay the appeal bond to proceed.

The hospital had already paid the $230,000 of taxes, but it never posted the bond.

The Sixth District Circuit Court in Adams County ruled in June 2016 that because the hospital had not paid the bond, the court did not have jurisdiction to hear the appeal and dismissed the case.

Merit Health Natchez CEO Eric Robinson’s only response to the ruling came in a statement that reads, “We respect the court’s decision and will comply with the ruling.”

The hospital had previously argued, according to the Supreme Court’s Thursday ruling, that a state law specified that no requirement exists for “a party to post a bond in addition to its taxes already paid,” while a separate statute under the state’s code required the bond to give a court jurisdiction to hear the case.

Thursday’s decision said the circuit court justly dismissed the case and affirmed that the hospital must pay the appeal bond to proceed.

Adams County Board of Supervisors Attorney Scott Slover said the ruling essentially marked a victory for the county, though the hospital could still file a motion for rehearing.

Adams County Chief Real Property Appraiser Michael Pace said the decision vindicated the county’s appraisal of the hospital.

“They had contested our assessment of the hospital, and we were just sticking firm to it trying to protect the taxpayers on it,” Pace said.