Court halts foreclosure auction of Elvis Presley's Graceland home: 'Irreparable harm'

The Graceland foreclosure case has taken another turn into the absurd.

Hours after a Memphis judge ruled that an auction of Elvis Presley’s iconic Graceland estate could not proceed, the company behind the sale said it is dropping the case.

On Wednesday morning, Chancellor JoeDae Jenkins issued a ruling in Shelby County Chancery Court to block the sale by Naussany Investments and Private Lending.

Riley Keough, Elvis' granddaughter, who sought to halt the auction, did not appear in court. Nor did representatives from Naussany show up to defend the company from her claims that the company's deed of trust and other documents are falsified.

In a subsequent email, Gregory Naussany, a representative of the firm, said the lawsuit has been dropped. However, the Shelby County Chancery Clerk's office confirmed it has not received any correspondence from Naussany.

Elvis' Graceland faces foreclosure: Granddaughter Riley Keough sues to block sale

In the statement sent to the (Memphis) Commercial Appeal, part of the USA TODAY Network, Naussany said in part: "There was no harm meant on Ms. Keough for her mothers LMP mis habits and mis managing of money. The company will be withdrawing all claims with prejudice." The statement alleges that Keough's mother, Elvis' daughter Lisa Marie Presley, had taken "multiple loans" with the firm since 2008.

Keough's lawyer could not be reached for comment on Naussany's statement about dropping the case.

In court, Jenkins said Graceland is considered unique real estate under Tennessee law and the potential loss of such real estate would cause "irreparable harm."

“Graceland is well loved by the community and around the world,” he said.

Jenkins said Gregory Naussany filed a request Wednesday morning to delay the injunction hearing. That was denied by the court.

Elvis Presley Enterprises, which operates the Graceland campus, expressed optimism regarding Wednesday's court ruling in a statement:

“As the court has now made clear, there was no validity to the claims. There will be no foreclosure. Graceland will continue to operate as it has for the past 42 years, ensuring that Elvis fans from around the world can continue to have a best in class experience when visiting his iconic home."

Public notice for the foreclosure sale of the property was posted earlier this month. The notice alleged that Promenade Trust, which controls the Graceland estate at 3734 Elvis Presley Blvd. in Memphis, owed $3.8 million to Naussany Investments and Private Lending after failing to repay a loan taken out by Lisa Marie Presley on May 16, 2018. Naussany says Graceland was used as collateral on the loan.

Is Graceland in foreclosure? What to know about Riley Keough's lawsuit to prevent Elvis' house sale

Keough, who inherited Promenade Trust after her mother's death in January 2023, filed suit to stop the sale.

In the lawsuit, Keough claims Naussany presented fraudulent documents regarding the loan and unpaid sum in September 2023. It also requests that a judge declare the deed of trust that Naussany Investments claims to have to be fraudulent.

"These documents are fraudulent," the lawsuit claims. "Lisa Marie Presley never borrowed money from Naussany Investments and never gave a deed of trust to Naussany Investments."

The lawsuit filed by Keough described Naussany Investments and Private Lending LLC as "not a real entity."

Memphis-based law firm Morton and Germany is representing Keough and the Promenade Trust. At Wednesday's hearing, Jeff Germany discussed the alleged falsified deed of trust attached to the lawsuit. The defense claims the notary stamp of Kimberly Philbrick on the deed of trust is forged. Germany said Philbrick has attested she did not notarize any such document, nor has she met ever Lisa Marie Presley.

Contributing: Kim Willis, USA TODAY

This article originally appeared on Memphis Commercial Appeal: Graceland foreclosure fight: Court stops sale of Elvis Presley's home