Memphis Bonding Company, Inc. v. Criminal Court of Tennessee 30th District

490 S.W.3d 458, 2015 WL 7575093, 2015 Tenn. App. LEXIS 930
CourtCourt of Appeals of Tennessee
DecidedNovember 25, 2015
DocketW2015-00562-COA-R10-CV
StatusPublished
Cited by11 cases

This text of 490 S.W.3d 458 (Memphis Bonding Company, Inc. v. Criminal Court of Tennessee 30th District) 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
Memphis Bonding Company, Inc. v. Criminal Court of Tennessee 30th District, 490 S.W.3d 458, 2015 WL 7575093, 2015 Tenn. App. LEXIS 930 (Tenn. Ct. App. 2015).

Opinion

*460 OPINION

BRANDON 0. GIBSON, J.,

delivered the opinion of the court,

in which J. STEVEN STAFFORD, P.J., W.S., and KENNY ARMSTRONG, J., joined.

This appeal involves a challenge to a local rule of the criminal court in Shelby County. The lawsuit was filed in the chancery court. After a hearing, the chancery court concluded that it had subject matter jurisdiction over the matter and entered a temporary injunction prohibiting the criminal court and its ten judges from enforcing-a section of the local rule. We granted an application for an extraordinary appeal filed by the criminal court and its judges. We reverse the chancery court’s exercise of subject matter jurisdiction, vacate the temporary injunction and remand for dismissal of the complaint.

I. Facts & PROCEDURAL History

Memphis Bonding Company, Inc. (“MBC”) is a bail bond company doing business in Shelby County, Tennessee. On February 23, 2015, MBC filed a sworn petition for injunctive relief and declaratory judgment in the chancery court of Shelby County, naming as defendants the Criminal Court of Tennessee for the Thirtieth Judicial District and each of its ten judges, who were named in their capacity as judges of the criminal court. According to the complaint, the criminal court and its judges (“Respondents”) were in the process of amending the existing Rules of Practice and Procedure for the Criminal Court of Tennessee for the Thirtieth Judicial District in order to enact “Local Rules of Practice and Procedure for Bail Bond Companies,” with an effective date of March 1, 2015. 1 MBC alleged that numerous sections of the proposed rules violated certain statutory and constitutional provisions and were also arbitrary, capricious, and without basis of right or legal authority. Accordingly, MBC asked the chancery court to declare the proposed Local Rules of Practice and Procedure for Bail Bond Companies “unenforceable, unconstitutional, and in violation of the law.” MBC also asked the chancery court to issue a temporary restraining order, a temporary injunction, and eventually a permanent injunction enjoining the criminal court and its ten judges from enforcing the proposed amended rule, which was set to take effect on March 1, 2015. The complaint asserted that the chancery court had jurisdiction over the matter pursuant to Tennessee Code Annotated sections 16-11-101, 16-11-102, 16-11-115, 29-14-101 et seq. and Tennessee Rule of Civil Procedure 57.

The Office of the Attorney General and Reporter filed a response on behalf of the Respondents. In the response, the Respondents claimed that MBC was asking the chancery court to “hinder a sister court in the conduct of its business as it relates to the regulation of persons who write bail bonds in that court.” They argued that “there is no legal basis for a litigant to obtain Chancery review of the actions of a circuit or criminal court or to use an equitable proceeding to hinder or disrupt those courts in the conduct of day to day business.” They also claimed that it would be inappropriate for the chancery court to “review an action of a sister court that has exclusive jurisdiction over criminal matters[.]”

On or about March 3, 2015, the chancery court entered a temporary restraining order as requested in the complaint. The order recited the chancery court’s conclu *461 sion that it “has jurisdiction in this matter.”

The parties submitted briefs prior to the next hearing, regarding the request for a temporary injunction, and they continued to dispute the existence of subject matter jurisdiction. MBC argued that the chancery court had jurisdiction because it is empowered with “all the powers, privileges, and jurisdiction properly and rightfully incident to a court of equity” pursuant to Tennessee Code Annotated section 16-11-101. It also claimed that relief was appropriate pursuant to the Declaratory Judgment Act, Tenn.Code Ann. § 29-14-101. In addition, MBC suggested that if a chancery court is empowered to review the constitutionality of a criminal statute, then by logical extension, it should have jurisdiction to “determine the constitutionality and lawfulness of administrative rules and regulations prescribed by a criminal court.” MBC also claimed that it had no other adequate remedy in any other court. It insisted that it would be inappropriate for the judges of the criminal court to consider the validity of rules they promulgated themselves.

In response to these arguments, Respondents claimed that none of the statutes cited by MBC conferred subject matter jurisdiction on the chancery court to review decisions of the criminal court or otherwise interfere with the conduct of its business. The Respondents argued that even if a chancery court is permitted to consider the validity of - a criminal statute, it is not permitted to enjoin its enforcement. By the same token, Respondents argued that a chancery court should not be permitted to enjoin a criminal court’s practices and procedures concerning bondsmen. They suggested that “all issues related to bail and the conduct of bondsmen are properly left exclusively in the hands of the court having criminal jurisdiction.” Respondents claimed that MBC had an adequate remedy aside from a chancery court proceeding because MBC could challenge the validity of the local rules in the event that it faced a criminal court action to suspend or revoke its authorization to write bail bonds.

After a hearing,' the chancery court entered an order granting in part and denying in part the request for a temporary injunction. The chancery court dissolved its previous temporary restraining order. It again concluded that it had subject matter jurisdiction over the matter, concluding that “Tennessee law is clear that Chancery Courts, pursuant to a declaratory judgment action, can make a ruling on whether a criminal matter is constitutional.” By extension, the chancery court reasoned that “this Chancery Court is authorized to rule upon the constitutionality of administrative rules and regulations, not criminal or penal in nature, even though the proposed enactment of the rules are by judges of a criminal court.” The chancery court also concluded that MBC had “no other remedy.” As a result, pending the final hearing, the chancery court temporarily enjoined the implementation of one particular subsection of proposed Rule 7, which would authorize random drug screening of bail bond company agents upon request of the criminal court. The chancery court concluded that such a requirement would be unconstitutional “on a state and federal constitutional basis.” The chancery court denied the request for a temporary injunction with regard to the remainder of the proposed rule.

Respondents filed an application for an extraordinary appeal pursuant to Rule 10 of the Tennessee Rules of Appellate Procedure. This Court granted the application to consider whether the chancery court has jurisdiction to enjoin the criminal court *462 from adopting, implementing, and enforcing local rules of the criminal court.

II. STANDARD OP REVIEW

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Cite This Page — Counsel Stack

Bluebook (online)
490 S.W.3d 458, 2015 WL 7575093, 2015 Tenn. App. LEXIS 930, Counsel Stack Legal Research, https://law.counselstack.com/opinion/memphis-bonding-company-inc-v-criminal-court-of-tennessee-30th-district-tennctapp-2015.