DEAN SALEM v. NICK GALBRAITH

CourtCourt of Appeals of Tennessee
DecidedDecember 15, 2025
StatusPublished

This text of DEAN SALEM v. NICK GALBRAITH (DEAN SALEM v. NICK GALBRAITH) 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
DEAN SALEM v. NICK GALBRAITH, (Tenn. Ct. App. 2025).

Opinion

12/15/2025 IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE April 16, 2025 Session

DEAN SALEM, ET AL. v. NICK GALBRAITH, ET AL.

Appeal from the Chancery Court for Campbell County No. 7CH1-2021-CV-255 Elizabeth C. Asbury, Chancellor

No. E2024-00337-COA-R3-CV

This is a dispute over the use of real property in a subdivision. Certain property owners filed this lawsuit seeking to enjoin other property owners in the subdivision from using or allowing the use of their properties as short-term rentals. The defendants moved to dismiss the plaintiffs’ second amended complaint based on interpretation of the restrictive covenants applicable to their properties. The trial court dismissed all causes of action. We affirm in part, and reverse in part.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed in part, Reversed in part; Case Remanded

JOHN W. MCCLARTY, J., delivered the opinion of the Court, in which KRISTI M. DAVIS, J., joined. D. MICHAEL SWINEY, C.J., not participating.

Matthew A. Grossman, Knoxville, Tennessee, for the appellants, Dean Salem, Elizabeth Salem, Rosana Templin, and Jeffrey R. Roberts.

Erika R. Barnes, Nashville, Tennessee, for the appellees, Nick Galbraith, Megan Galbraith, and Edward Constantine Bayer.

W. Tyler Chastain and James Michael Clement, Knoxville, Tennessee, for the appellees, Andrew Lockwood Peterman, 976 Foxridge Ln., LLC, Debra Howard, Linda Roberts, and Cecilia Courtney. OPINION

I. BACKGROUND

On December 18, 2021, the appellants Dean Salem, Elizabeth Salem, Rosana Templin, and Jeffrey R. Roberts (collectively, “Plaintiffs”) commenced this action seeking to prohibit short-term rental operations in the Cove Norris Subdivision on Norris Lake. Plaintiffs’ complaint named the following defendants: Nick Galbraith, Megan Galbraith, Edward Bayer, Andrew Lockwood Peterman, 976 Foxridge Ln., LLC, Debra Howard, Linda Roberts, and Cecilia Courtney. Plaintiffs’ complaint sought to enjoin Defendants “from using or allowing the use of their respective properties as a commercial short-term rental operation in violation of [certain restrictive covenants of record].” Certain Defendants moved to dismiss the complaint. The trial court denied those motions in 2022.

By agreed order entered December 20, 2022, the action was stayed pending the Tennessee Supreme Court’s decision in Pratik Pandharipande, M.D. v. FSD Corporation, 679 S.W.3d 610 (Tenn. 2023). Pandharipande was a dispute about the short-term rental of a property subject to restrictive covenants similar to those at issue in the instant litigation. After the Court delivered the Pandharipande opinion, Plaintiffs were permitted to amend their complaint to add a common law nuisance claim. In the operative second amended complaint, Plaintiffs requested that Defendants be enjoined from allowing their respective properties to be used “as a commercial short-term rental operation, nuisance, or other violation of the [applicable restrictive covenants]” and also be enjoined from “using or allowing the use of their respective properties as a common law nuisance.”

The Cove Norris Subdivision was developed in phases, so there are three sets of restrictive covenants applicable to the properties of three groups of Defendants, as specified in the operative second amended complaint. These are the Cove Norris Restrictions, the Section 2A and 2B Restrictions, and the Tract III Land Use Restrictions. The three sets of restrictive covenants have nearly identical language.

The Cove Norris Restrictions are the restrictive covenants set forth in the “Cove Norris Subdivision Land Use Restrictions, Protective Covenants, and Building Standards” dated June 12, 1974, of record in Book W212, Page 646 in the Register’s Office for Campbell County, Tennessee. The Cove Norris Restrictions are applicable to the properties owned by Defendant Andrew Lockwood Peterman and Plaintiff Rosana Templin and provide, inter alia:

These lots . . . shall be used for residential purposes only.

No trade or commercial activity shall be carried on on any residential lot. -2- No obnoxious or offensive trade or activity shall be carried on upon any lot, nor shall anything be done thereon which may be or become any [sic] annoyance or nuisance to the neighborhood.

The Section 2A and 2B Restrictions are the “Cove Norris Subdivision Sections 2A and 2B[,] A Declaration of Land Use Restrictions, Protective Covenants and Building Standards” dated May 31, 1977, of record in Book M2, Page 386 in the Register’s Office for Campbell County, Tennessee, as amended by Amendment to Restrictions Cove Norris Subdivision Sections 2A and 2B, dated July 31, 1982, of record in Book M17, Page 735 in the Register’s Office for Campbell County, Tennessee. The Section 2A and 2B Restrictions are applicable to the properties owned by Defendants Debra Howard, Linda Roberts, and Cecilia Courtney, as well as Plaintiff Jeffrey R. Roberts. They provide, inter alia:

These lots . . . shall be used for residential purposes only.

No trade or commercial activity shall be carried on on any residential lot.

No obnoxious or offensive trade or activity shall be carried on upon any lot, nor shall anything be done thereon which may be or become an annoyance or nuisance to the neighborhood.

The Developer reserves Lots 3 and 4 of Section 2A Cove Norris Subdivision for commercial use by the Developer.[1]

The Tract III Land Use Restrictions are the “Cove Norris Tract III Land Use Restrictions – Protective Covenants – and Building Standards,” dated November 9, 1984, and of record in Book M11, Page 659 in the Register’s Office for Campbell County, Tennessee. The Tract III Land Use Restrictions are applicable to Defendants 976 Foxridge Ln., LLC, Nick Galbraith, Megan Galbraith, and Edward Bayer as well as to Plaintiffs Dean Salem and Elizabeth Salem. They provide, inter alia:

The tracts are to be used for residential purposes only.

No trade or commercial activity shall be carried on in any manner.

1 The Amendment to the Section 2A and 2B restrictive covenants states that “lots 3 and 4 are to be used for residential purposes only, not as commercial as previously designated.” Plaintiffs alleged that Defendants Debra Howard, Linda Roberts, and Cecilia Courtney own lot 3.

-3- No obnoxious or offensive trade activity so as to constitute a nuisance shall be conducted on any tract, nor shall anything be done thereon which may be or become an annoyance or nuisance to the neighborhood.

Citing the above restrictive covenants, Plaintiffs’ second amended complaint alleged:

Defendants are using or allowing the use of their properties in violation of the applicable restrictions by inter alia operating their properties as commercial, short-term rental operations to innumerable guests who routinely use the properties in a nonresidential manner for less than a week.

The guests who stay at Defendants’ properties short-term do not use such properties as a residence; instead, they use them as a vacationer would use a hotel or commercial vacation resort.

The guests who routinely stay at Defendants’ properties on a short-term basis often host late-night parties, blare loud music at unreasonably loud levels and at unreasonable hours, and/or engage in other unreasonable behaviors that constitute a nuisance to the residential neighborhood.

Cove Creek Development Corporation, Inc., a Tennessee corporation, was the developer and declarant of the applicable restrictive covenants and at all material times intended that the restrictive covenants would prohibit the above-described use of Defendants’ properties.

The use as alleged violates the terms of the applicable restrictions.

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Bluebook (online)
DEAN SALEM v. NICK GALBRAITH, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dean-salem-v-nick-galbraith-tennctapp-2025.