Dossett v. City of Kingsport

258 S.W.3d 139, 2007 Tenn. App. LEXIS 729, 2007 WL 4192020
CourtCourt of Appeals of Tennessee
DecidedNovember 28, 2007
DocketE2007-00010-COA-R3-CV
StatusPublished
Cited by12 cases

This text of 258 S.W.3d 139 (Dossett v. City of Kingsport) 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
Dossett v. City of Kingsport, 258 S.W.3d 139, 2007 Tenn. App. LEXIS 729, 2007 WL 4192020 (Tenn. Ct. App. 2007).

Opinion

OPINION

D. MICHAEL SWINEY, J.,

delivered the opinion of the court, in which

HERSCHEL P. FRANKS, P.J., and SHARON G. LEE, J., joined.

Thomas D. Dossett (“Plaintiff”) filed suit after the Kingsport Board of Mayor and Aldermen (the “Board”) showed an interest in selling city-owned real estate to private investors. Members of the Board met privately on two occasions with a potential buyer, after which the sale was considered at five public meetings and then approved by the Board. In his lawsuit, Plaintiff alleged that the ordinance by which the city disposes of surplus property is illegal; that the city violated the Open Meetings Act (the “Act”); and that a constructive trust should be imposed on the property for the use and benefit of the citizens of Kingsport. In a series of orders, the Trial Court dismissed the constructive trust issue, granted summary judgment to Defendant on the Open Meetings Act claim, and dismissed Plaintiffs challenge to the surplus property ordinance for Plaintiff’s lack of standing. Plaintiff appeals the Trial Court’s rulings on the standing issue and the Open Meetings Act claim. Plaintiff failed to request an in limine hearing or to make an offer of proof regarding his standing to challenge the ordinance, and we, therefore, find no reversible error as to this issue. We also hold that any alleged violations of the Open Meetings Act were cured by the Board’s full and substantial consideration of the sale at five public meetings after the private meetings took place. We affirm.

I. Background

This lawsuit stems from the decision of the Board to sell a parcel of land, the building on that land, and part of an adjacent parking lot in downtown Kingsport to a group of investors seeking to open a *142 bank there. In 2005, R. Lynn Shipley (“Shipley”) approached City officials regarding the possibility of purchasing a piece of improved property on Church Circle commonly known as the “AEP Building.” The City purchased the AEP Building in 2004 from the Kingsport Power Company. The AEP Building was constructed in 1932 with a classical Greek and Roman architectural design. The City used part of the AEP Building for a Customer Service Center where residents could pay their water and sewer bills. Shipley represented a group of investors who were in the process of obtaining a charter from the State of Tennessee to form a bank under the name of TriSummit Bank (“TriSummit”), and the investors were considering the AEP Building as a potential location for their new venture.

The Kingsport Regional Planning Commission (the “Planning Commission”) heard a presentation at its November 17, 2005, meeting regarding TriSummit’s interest in opening a bank in the AEP Building. The Planning Commission then voted unanimously to declare the AEP Building as surplus property, thus making it possible for the City to sell the property. The City’s procedure for disposing of surplus real property is codified in Ordinance No. 2-462 (the “Ordinance”), which requires' the Board to select one of its members to serve as the “Designated Alderman.” The Designated Alderman has “the authority to dispose of surplus real property subject to final approval by the board of mayor and aldermen,” including the right to sell the property privately rather than conducting a public sale or auction.

During a public work session on December 5, 2005, Hoyt Denton, who was the Board’s Designated Alderman at the time, recommended that a fair market price for the property would be $800,000. On December 20, 2005, during its regular public business meeting, the Board unanimously passed on first reading an ordinance authorizing the sale of the AEP Building to TriSummit for $800,000. The Board passed the ordinance on second and final reading during a special called public meeting on January 9, 2006.

Although the Board conducted several public meetings and work sessions during late 2005 to consider TriSummit’s purchase of the AEP Budding, some Board members also attended two private meetings about the sale of the AEP Budding. On September 14, 2005, Shipley met with City Mayor Dennis Phdlips, Vice Mayor Larry Munsey, City Manager A. Ray Griffin, and Jeff Fleming, the City’s assistant manager for development services, to discuss TriSummit’s proposed acquisition of the AEP Budding. This gathering took place without notice to the public. A second private meeting was held on November 29, 2005, at which time Shipley presented architectural plans for renovation of the AEP Building and the results of an appraisal performed for TriSummit as to the value of the AEP Budding. Those present, in addition to Shipley, were Mayor Phdlips, Griffin, and Denton.

On December 16, 2005, Plaintiff filed this suit against the City and Shipley, in his capacity as representative for TriSum-mit, and amended the complaint four days later. Plaintiffs Amended Complaint sought relief pursuant to the Declaratory Judgment Act to have the Trial Court declare the Ordinance void; find that the Board had violated the Open Meetings Act and declare the actions taken in the two private meetings with Shipley null and void; and impose a constructive trust on the AEP Building, asserting that such an action was appropriate because the City purchased the property with the understanding that it would be preserved and *143 held in trust for the benefit and use of the City’s residents.

The Trial Court dismissed Shipley as a defendant on March 17, 2006, finding that he was not a proper party to the lawsuit. The Trial Court also dismissed the first and third counts of Plaintiffs Amended Complaint, holding that Plaintiff did not have standing to maintain an action challenging the validity of the Ordinance and that dismissal of the Plaintiffs constructive trust claim also was appropriate.

Shortly thereafter, Plaintiff filed a motion to amend his Amended Complaint and attached a proposed Second Amended Complaint. The proposed Second Amended Complaint did not name Shipley as a party to the lawsuit, leaving the City as the only defendant, and omitted Count III, the constructive trust issue. The proposed complaint also identified Plaintiff as a relator for H. Greeley Wells, Jr., district attorney general for the Second Judicial District of Tennessee, in the nature of a quo warranto action pursuant to Tenn.Code Ann. § 29-35-101, et seq. In support of his motion, Plaintiff attached a letter from Wells in which the district attorney declined to participate in the lawsuit.

Before the Trial Court ruled on Plaintiffs motion to amend, the City filed a Motion for Summary Judgment on the Open Meetings Act claim, which was the only count remaining in Plaintiffs lawsuit at that time. Following a hearing on both motions, the Trial Court granted Plaintiffs request to amend his complaint. The City then filed a motion to dismiss Count I of Plaintiffs Second Amended Complaint, alleging that Plaintiff had not met the procedural requirements to maintain a quo war-ranto action.

The Trial Court entered an order granting summary judgment to the City on Count II of Plaintiffs Second Amended Complaint, the Open Meetings Act claim.

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Bluebook (online)
258 S.W.3d 139, 2007 Tenn. App. LEXIS 729, 2007 WL 4192020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dossett-v-city-of-kingsport-tennctapp-2007.