Sale of Nineteenth Century Club may have violated state law - Action News 5 - Memphis, Tennessee

Sale of Nineteenth Century Club may have violated state law

Posted: Updated:
MEMPHIS, TN -

(WMC-TV) - The state attorney general and a Shelby County judge may void the sale if the Nineteenth Century Club.

Attorney Steve Mulroy says the sale was not in compliance with club membership rules. He says the club may have violated its own bylaws when the board's decision to sell the historic mansion was not put up for a vote by the entire membership.

"And the state law makes absolutely clear that sale had to be approved by a vote of the full membership," said Mulroy.

If a judge agrees, the sale of 106-year-old Union Avenue mansion would be void and give members a chance to decide on a new buyer who might agree to preserve it rather than tear it down.

State Representative Joe Townes is among those who sent letters to the state attorney general's office. The AG agreed to get involved to reopen and review the case.

"You know there's just a loud cry that reached my office and my ears that we do something about it," said Rep. Joe Townes. "So we want to bring attention to it and see if we can stop it."

But in order for the plaintiffs to present the merits of the case to a judge, the court will require $50,000 in injunction bond money. So far, $40,000 have been pledged.

Mulroy feels confident a judge will rule in favor of saving the Nineteenth Century Club, but the clock is ticking.

"Please help out by Monday, we need to raise money for a bond," said Mulroy.

From the sale of the building, $500,000 was donated to the Children's Museum of Memphis. There is talk of freezing that money.

Memphis Heritage Foundation will be collecting pledges for the bond injunction. For more information about the effort, call (901) 272-2727 or click here: http://www.memphisheritage.org

Copyright 2013 WMC-TV. All rights reserved.

Powered by WorldNow