Cobb v. Shelby County Board of Commissioners

771 S.W.2d 124, 1989 Tenn. LEXIS 146
CourtTennessee Supreme Court
DecidedMay 8, 1989
StatusPublished
Cited by12 cases

This text of 771 S.W.2d 124 (Cobb v. Shelby County Board of Commissioners) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cobb v. Shelby County Board of Commissioners, 771 S.W.2d 124, 1989 Tenn. LEXIS 146 (Tenn. 1989).

Opinion

OPINION

DROWOTA, Chief Justice.

As taxpayers and citizens of Shelby County, Plaintiffs brought this action to declare invalid an ordinance authorizing new salaries for the members of the Shelby County Board of Commissioners. They sought to enjoin payment under the ordinance and to recoup for the County treasury any sums paid out. The complaint alleged the disputed amounts were an illegal increase in the Commissioners’ remuneration specifically prohibited by article II, section 2.04 of the Shelby County Home Rule Charter, and generally prohibited by T.C.A. § 5-5-107 and public policy as reflected in various provisions of the Tennessee Constitution. Named as defendants were the Commissioners, the Mayor, and two financial officers of Shelby County.

The Chancellor granted summary judgment for Plaintiffs on finding that they had standing to litigate the issue and that the *125 ordinance was invalid. The Court of Appeals reversed and dismissed the cause, holding that plaintiffs lacked standing to litigate the matter because the charter and other authority asserted did not prohibit the disputed salaries. We granted an appeal to consider these conflicting rulings.

The dispute arose when the first Board of Commissioners of Shelby County elected under the new government adopted an ordinance authorizing for themselves an annual salary of $16,500. The salary under the previous government had been fixed by private act at $6,000. The facts were stipulated on cross motions for summary judgment.

By referendum of August 1, 1984, the voters of Shelby County adopted a Mayor-County Commission form of government. Except for provisions for the election of officials, the Charter became effective September 1, 1986. The first Board of Commissioners was elected in August 1986, and met at its first opportunity, September 8. Ordinance No. 3, at issue here, was submitted then and at the two succeeding meetings; and on September 22, 1986, it was adopted upon its third and final reading. By its terms, the $16,500 salary went into effect immediately upon the effective date of the ordinance, which was October 8, 1986. 1 From September 1 until this date the County fiscal officer had issued checks to the Commissioners reflecting an annual salary of $6,000.

By letter of October 10, Plaintiffs requested that the Mayor prevent disbursement of funds for the salaries authorized by Ordinance No. 3, asserting that it constituted an unlawful increase. Immediately the County Attorney advised the Mayor that the new salaries had been duly adopted and that absent an injunction he could not lawfully comply with the citizens’ demand. ,

I

The initial question is whether our courts will entertain a taxpayer suit contesting the legality of payments made to county officials from public funds; that is, whether a taxpayer/citizen has standing to litigate the issue presented in the complaint.

It is not at this point appropriate to examine the merits of the ultimate question. The Court should determine whether a party may litigate the legality of a public officer’s payments to himself, without first deciding whether those payments are, in fact and law, illegal. Because citizen suits do burden the conduct of public affairs, a defendant entity or officer should not be obliged to defend on the merits if he is entitled to a dismissal for lack of standing. Nor should the court critique the conduct of public officials if the cause is not justiciable. 2

The elements of taxpayer standing with respect to disbursement of local government funds were summarized in Badgett v. Rogers, 222 Tenn. 374, 436 S.W.2d 292 (1968), and noted in the subsequent case of Metropolitan Government of Nashville ex rel. Anderson v. Fulton, *126 701 S.W.2d 597 (Tenn.1985). Taxpayers have a sufficient interest in the disposition of public funds to present the issue in an adversary fashion, but due consideration for the conduct of public affairs requires that plaintiffs first have notified appropriate officials of the illegality and given them an opportunity to take corrective action short of litigation. The complaint must allege a specific legal prohibition on the disputed use of funds or demonstrate that it is outside the grant of authority to the local government. It has always been recognized that a taxpayer/citizen has standing to challenge' “illegal” uses of public funds but not “improvident” ones — “the wisdom, policy, injurious tendency, or mischievous consequences of a statute or ordinance are not open to inquiry.” Soukup v. Sell, 171 Tenn. 437, 441, 104 S.W.2d 830, 831 (1937). Finally, the action must be brought against the delinquent public officials. The courts will not entertain a citizen action to recoup public funds from private individuals. See Metro v. Fulton, 701 S.W.2d at 600; Trigg v. Mansfield, 648 S.W.2d 946 (Tenn.App.1982) (distinguishing State ex rel. Vaughn v. King, 653 S.W.2d 727 (Tenn.App.1982)).

The Badgett case has been given different interpretations by the parties here, as well as by the lower courts, but it is particularly apposite.

In Badgett taxpayer/citizens sued to recoup monies paid and to enjoin further payments to the Mayor of Knoxville from public funds. Named as defendants were the Mayor and finance director of the City of Knoxville. The complaint alleged that payments made through an expense account, authorized by the city council, caused the Mayor’s compensation to exceed a $15,000 limitation placed on his salary by the City Charter. This Court held that plaintiffs did have standing to seek relief for the alleged misappropriation of public funds. On the merits, the court sustained the defendants’ demurrer, citing Burns v. City of Nashville, 142 Tenn. 541, 221 S.W. 828 (1920), which held there was no general legal prohibition on a city council’s authorization of expense accounts.

Subsequent decisions have not overruled Badgett. Most deal with matters other than the expenditure of public funds and follow from the leading case of Patton v. Chattanooga, 108 Tenn. 197, 65 S.W. 414 (1901), in which it was held that taxpayer/citizens did not have standing to litigate the city’s grant of a franchise. See, e.g., Bennett v. Stutts, 521 S.W.2d 575 (Tenn.1975) (violation of statute requiring open meetings); Sachs v. Shelby County Election Commission, 525 S.W.2d 672

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Bluebook (online)
771 S.W.2d 124, 1989 Tenn. LEXIS 146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cobb-v-shelby-county-board-of-commissioners-tenn-1989.