Pelley v. City of Athens, Tennessee

CourtDistrict Court, M.D. Tennessee
DecidedAugust 11, 2025
Docket3:24-cv-01306
StatusUnknown

This text of Pelley v. City of Athens, Tennessee (Pelley v. City of Athens, Tennessee) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pelley v. City of Athens, Tennessee, (M.D. Tenn. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

DR. ADOLPHUS PELLEY, ) ) Plaintiff, ) NO. 3:24-CV-01306 ) v. ) JUDGE RICHARDSON ) CITY OF ATHENS, TENNESSEE, and ) PUBLIC ENTITY PARTNERS, ) ) Defendants. ) )

MEMORANDUM OPINION AND ORDER Pending before the Court is “Defendant City of Athens’ Motion to Dismiss First Amended Complaint” (Doc. No. 21, “Motion”), whereby Defendant City of Athens (“Athens”) seeks dismissal of this action under Federal Rule of Civil Procedure 12(b)(1) for lack of subject-matter jurisdiction1 or, alternatively, under Rule 12(b)(6) for failure to state a claim upon which relief can be granted. Athens supports the Motion with a memorandum of law (Doc. No. 22, “Memorandum”). Plaintiff Dr. Adolphus Pelley (“Plaintiff”) responded in opposition, reasserting that he has implicated Athens in plausible claims that confer subject-matter jurisdiction. (Doc. No. 26, “Response”). Thereafter, Athens filed “Defendant City of Athens’ Reply to Plaintiff’s Response to its Motion to Dismiss” (Doc. No. 28, “Reply”), restating arguments from its Memorandum as well as replying to some of Plaintiff’s reasserted allegations from his Response. For the reasons stated herein, Athens’s Motion is GRANTED.

1 Athens’s co-Defendant, Public Entity Partners, filed its own motion to dismiss for lack of subject-matter jurisdiction (or alternatively to compel arbitration), (Doc. No. 31), but the Court need not reach that motion, given the disposition of the instant Motion. RELEVANT BACKGROUND2 Plaintiff has served as a self-titled “City Commissioner”3 of Athens, Tennessee for approximately twenty years. (Doc. No. 20 at ¶ 5). Athens, a municipality in McMinn County, operates under a council-manager form of government, with policy-making authority vested in the city council. (Id. at ¶ 6). Its co-Defendant, Public Entity Partners, headquartered in Franklin, Tennessee, is a non-profit municipal liability insurance carrier that provides coverage and defense

to Athens and its officials for litigation arising from their official duties. (Id. at ¶ 10, 18). This dispute arises from an ouster action4 filed against Plaintiff, at the behest of Athens, in McMinn County Circuit Court under Tennessee Code Annotated § 8-47-101 (“State Action”). (Id. at ¶¶ 11, 15). Citing State ex rel. Complainant v. Ward, 43 S.W.2d 217 (Tenn. 1931), Plaintiff alleges that the allegations in the complaint in State Action did not meet the legal standard for malfeasance or neglect of duty within the meaning of Article VII, Section 1 of the Tennessee Constitution, as required (according to Plaintiff) to remove a county officer from office. (Id.).

2 The facts contained herein come from the Plaintiff’s “Complaint for Declaratory Judgment” (Doc. No. 20, “Amended Complaint”), which was an amended complaint that superseded the initial complaint (Doc. No. 1). For purposes of the instant Motion and pursuant to the typical mechanisms of assessing motions under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6), the Court accepts the facts in the Amended Complaint as true, except to the extent that this Order qualifies them (as, for example, by “Plaintiff alleges”) to denote that they are not being taken as true (because, for example, they are not really facts at all but rather legal conclusions) but rather are set forth to indicate what Plaintiff claims to be true. Throughout this Order, the Court forgoes any such qualifiers for any fact that it is accepting as true, stating those facts without qualification even with the awareness that any such alleged fact may ultimately prove false.

3 The Court will refer to Plaintiff’s position as he describes it, though it acknowledges that Athens’s website lists Plaintiff and his colleagues as “Councilmember[s].” City Council, https://athenstn.gov/team_athens/city_council/index.php (last visited August 6, 2025).

4 Under Tennessee Law, ouster actions serve as a mechanism to remove public officers who act unfaithfully during their terms in office. State ex rel. Agee v. Hassler, 264 S.W.2d 799, 800 (Tenn. 1954). “Unfaithful actions” include those of knowing or willful misconduct during their term, knowing or willful neglect of obligatory duties of the individual’s respective office, public intoxication, illegal gambling, or other acts that violate penal codes and implicate general “moral turpitude.” Tenn. Code Ann. § 8-47-101. Plaintiff, who alleges that he is insured in his official capacity under a liability insurance policy (Doc. No. 20-1, “Liability Policy”) issued to Athens by Public Entity Partners, submitted a claim for defense coverage in the State Action. (Id. at ¶¶ 11, 16, 19). Public Entity Partners denied this claim without issuing a reservation of rights letter or investigating the incident, which according

to Plaintiff constitutes a breach of the policy agreement. (Id. at ¶¶ 19, 24). Allegedly as a consequence of Public Entity Partners’s denial, Plaintiff had to defend himself pro se until he recently retained counsel and was then forced to pay a $5,000 retainer fee out of pocket for that counsel. (Id. at ¶¶ 18, 20). The trial of the State Action was scheduled for October 31, 2024, before the McMinn County Circuit Court. (Id. at ¶ 22). On the day that the trial was scheduled to commence, Plaintiff filed this suit against Athens and Public Entity Partners. Throughout the complaint, Plaintiff makes numerous underdeveloped assertions (some or all of which may be more in the realm of legal conclusions that factual allegations), including that the Liability Policy is against public policy and (apparently)5 that Public Entity Partners’s non-profit status is illegitimate. (Id. at ¶¶ 14, 30). Plaintiff further alleges

a “quasi-property right” that allegedly “implicat[es] the due process clause” and seemingly implies that the pursuit of (and denial of insurance coverage with respect to) the State Action violates that right. (Id. at ¶ 25). Plaintiff then prays for the following relief: (1) a stay of the State Action in McMinn County Circuit Court; (2) a declaration that the Liability Policy “provides a defense” for Plaintiff’s defense in the State Action; (3) a declaration that the Liability Policy and Public Entity Partners’s claim-denial practices violate public policy; and (4) costs and attorney’s fees. (Id. at 8). Originally

5 The Court says “apparently” because the meaning of the cited paragraph is not entirely clear, since its sole sentence is an incomplete sentence. representing himself pro se, Plaintiff has since obtained counsel, who filed the Amended Complaint. (Id.).6 Athens then filed the instant Motion. (Doc. No. 21). LEGAL STANDARD I. Standard for Motions to Dismiss Under Fed. R. Civ. P. 12(b)(1)

“Without jurisdiction the court cannot proceed at all in any cause. Jurisdiction is power to declare the law, and when it ceases to exist, the only function remaining to the court is that of announcing the fact and dismissing the cause.” Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 94 (1998) (quoting Ex parte McCardle, 74 U.S. 506, 514 (1869)). Federal Rule of Civil Procedure 12(b)(1) provides for the dismissal of an action for lack of subject-matter jurisdiction, which is “always a threshold determination.” Cartwright v. Garner, 751 F.3d 752, 759 (6th Cir.

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Bluebook (online)
Pelley v. City of Athens, Tennessee, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pelley-v-city-of-athens-tennessee-tnmd-2025.