CITY OF PIGEON FORGE, TENNESSEE v. RLR INVESTMENTS, LLC

CourtCourt of Appeals of Tennessee
DecidedApril 30, 2025
DocketE2023-01802-COA-R3-CV
StatusPublished

This text of CITY OF PIGEON FORGE, TENNESSEE v. RLR INVESTMENTS, LLC (CITY OF PIGEON FORGE, TENNESSEE v. RLR INVESTMENTS, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CITY OF PIGEON FORGE, TENNESSEE v. RLR INVESTMENTS, LLC, (Tenn. Ct. App. 2025).

Opinion

04/30/2025 IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE January 16, 2025 Session

CITY OF PIGEON FORGE, TENNESSEE v. RLR INVESTMENTS, LLC

Appeal from the Circuit Court for Sevier County No. 15-CV-372-I Carter S. Moore, Judge

No. E2023-01802-COA-R3-CV

In this condemnation action, the trial court entered an order of possession granting to the petitioner city two greenway easements and two construction easements over two tracts of land owned by the respondent corporation. In the order of possession, the court found that the city’s taking was for the public purpose of the city’s greenway project. The corporation filed two successive motions for summary judgment, claiming that because the taking was partially for a private purpose, it violated the Fifth Amendment Takings Clause of the United States Constitution and Article I, Section 21 of the Tennessee Constitution. The corporation averred that the order of possession required the city to construct parking spaces on one of the corporation’s tracts to replace parking spaces taken from the other tract and that this would yield only a private benefit. The corporation also asserted that the city had abandoned its taking by failing to construct the replacement parking despite the completion of the greenway. The trial court denied both motions for summary judgment, determining that the order of possession had not required the city to build replacement parking and that no abandonment had occurred. Following a jury trial regarding compensation, the trial court entered a judgment approving the jury’s monetary award to the corporation with prejudgment interest. The corporation has appealed. Discerning no reversible error, we affirm. We deny the corporation’s request for an award of costs and attorney’s fees on appeal.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed; Case Remanded

THOMAS R. FRIERSON, II, J., delivered the opinion of the court, in which D. MICHAEL SWINEY, C.J., and KRISTI M. DAVIS, J., joined.

Gregory C. Logue, Knoxville, Tennessee, and Anthony C. White and Thomas M. Ritzert, Cleveland, Ohio, for the appellant, RLR Investments, LLC. Brian R. Bibb, Knoxville, Tennessee, and Nathan D. Rowell, Sevierville, Tennessee, for the appellee, City of Pigeon Forge, Tennessee.

OPINION

I. Factual and Procedural Background

The petitioner, the City of Pigeon Forge (“the City”), filed a petition for condemnation on June 4, 2015, naming RLR Investments, LLC (“RLR”), and The Provident Bank as respondents. Relying on Tennessee’s eminent domain statutory scheme, the City sought “to acquire certain property rights for greenway easement” along the Little Pigeon River and asserted that the property rights sought were for a public purpose. The petition involved two tracts of improved real property, both owned by RLR in fee simple. According to undisputed facts subsequently filed by RLR, the first tract is “a hotel property used as a private resort for RLR’s employees” (“the Hotel Property”), and the second tract “is adjacent to the Hotel Property and contains a duplex, parking area, and open green space” (“the Duplex Property”).1 The City requested a permanent greenway easement traversing each tract, comprised of 2,138 square feet over the Hotel Property and 1,870 square feet over the Duplex Property. The City also requested a temporary construction easement consisting of 1,786 square feet over the Hotel Property and a temporary construction easement consisting of 5,210 square feet over the Duplex Property. The City stated that it had determined the amount to which the respondents would be entitled as compensation to be $131,450.00 and had deposited this amount with the trial court clerk.

On July 2, 2015, RLR filed an “Objection to the Right to Take and Answer,” asserting that Tennessee’s eminent domain statutory scheme did not authorize the City to condemn the property sought for use as a greenway. RLR also maintained that the amount deposited by the City with the court clerk was inadequate to compensate for the property if the petition were granted. The City subsequently amended its condemnation petition to add further statutory citations concerning eminent domain.

Regarding the procedure involved in an eminent domain action, Tennessee Code Annotated § 29-17-104(a)(2)(B) (West July 9, 2012, to current) provides that if the right to take is challenged in a timely filed answer, “the court shall promptly determine, as a matter of law, whether the condemner has the right to take the property or property rights sought to be condemned.” The statute further provides: “If the court determines that the

1 In naming The Provident Bank as a respondent, the City averred that RLR’s interest in the Hotel Property was subject to an assignment of leases and rents held by The Provident Bank. However, the trial court subsequently entered an agreed order dismissing The Provident Bank from this action and noting that the lien the bank held had been released.

-2- condemner has the right to take, the condemner shall thereupon have the right to take possession thereof.” Id. The statute also provides for bifurcated proceedings, culminating in a trial addressing damages after the issue of possession has been determined. See Tenn. Code Ann. § 29-17-104(b) (West July 9, 2012, to current) (“When a condemner has the right to take possession of property or property rights, if necessary, the court shall issue a writ of possession to the sheriff of the county to put the condemner in possession. The writ may be issued prior to a trial on the damages.”).

Following an evidentiary hearing, the trial court entered an “Order of Possession” in favor of the City on May 31, 2016, granting the requested easements.2 Diagrams of the tracts with the respective easements noted were attached as collective “Exhibit A” to the Order of Possession. The court also incorporated a transcript of its findings made from the bench, wherein the court stated:

The Court is satisfied that the city has carried its burden of proof that the Greenway project is for public purpose and convenience to the public, that it[’s] [a] proper exercise of the eminent domain powers of the city; and the Court will grant the city possession.

The princip[al] arguments revolve around certifications. The city says it has all applicable certifications in place. Any project, this one in particular because there are regulations that must be complied with, must be completed and finished in accordance with all applicable state, Federal regulations and the city’s own ordinances. That’s the city’s burden. That’s the city’s responsibility as it would [be] if the city were simply building a sidewalk. The same principles apply, and it is the city’s responsibility to carry out all its activity in accordance with those regulations. That does not, in the Court’s opinion, have anything to do with the city’s right to take and proceed.

The Court has heard and I don’t know the specific numbers, but a large number of tracts have already been taken on either end, either side of Tracts 4 and 5 and the Greenway’s construction has been commenced on those properties. Th[ese are] the last remaining tracts within this project. In order to complete the project, which the Court finds is for a public purpose, the city needs these two tracts.

Much of the arguments raised, particularly with respect to the parking lots, have to do with issues perhaps of damages, the amount of compensation. 2 In the Order of Possession, the trial court noted that the City had withdrawn a request for a wastewater reuse easement that had been initially included in the City’s petition.

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Bluebook (online)
CITY OF PIGEON FORGE, TENNESSEE v. RLR INVESTMENTS, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-pigeon-forge-tennessee-v-rlr-investments-llc-tennctapp-2025.