Rachel Anderson v. Metropolitan Government Of Nashville & Davidson County, TN

CourtCourt of Appeals of Tennessee
DecidedJanuary 23, 2018
DocketM2017-00190-COA-R3-CV
StatusPublished

This text of Rachel Anderson v. Metropolitan Government Of Nashville & Davidson County, TN (Rachel Anderson v. Metropolitan Government Of Nashville & Davidson County, TN) 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
Rachel Anderson v. Metropolitan Government Of Nashville & Davidson County, TN, (Tenn. Ct. App. 2018).

Opinion

01/23/2018 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE August 15, 2017 Session

RACHEL ANDERSON, ET AL. v. METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY, TN

Appeal from the Circuit Court for Davidson County No. 15C3212 Kelvin D. Jones, Judge ___________________________________

No. M2017-00190-COA-R3-CV ___________________________________

This case involves various issues related to an ordinance the Metropolitan Government of Nashville and Davidson County enacted to address short-term rental properties. Among other things, the enacted ordinance provided that no more than 3% of non-owner- occupied single-family or two-family residential units would be granted short-term rental permits in each census tract. The plaintiffs, who previously listed their home on Airbnb.com, filed suit against the Metropolitan Government challenging the enforceability of the ordinance on several fronts. In addition to asserting that the enacted ordinance was unconstitutionally vague, the plaintiffs contended that the 3% cap on certain short-term rentals was an unlawful monopoly. After competing motions for summary judgment were filed, the trial court held that the definition of a “short-term rental property” was unconstitutionally vague as-applied to the plaintiffs, but it also held that the 3% cap did not constitute a monopoly. Given the plaintiffs’ success on their constitutional “vagueness” claim, the trial court found them to be prevailing parties under 42 U.S.C. § 1988 and awarded them certain attorney’s fees. On appeal, both sides raise issues asserting error. Because several definitions contained within the governmental ordinance have been amended since the filing of this appeal, we conclude that the plaintiffs’ constitutional “vagueness” claim is now moot. Concerning the propriety of the 3% cap on non-owner-occupied short-term rentals, we have determined that the cap is constitutionally permissible even assuming that it constitutes a monopoly. For reasons discussed herein, we vacate the award of attorney’s fees and remand the issue for reconsideration. Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed in Part, Vacated in Part and Remanded

ARNOLD B. GOLDIN, J., delivered the opinion of the Court, in which BRANDON O. GIBSON and KENNY ARMSTRONG, JJ., joined. Lora Barkenbus Fox and Catherine J. Pham, Nashville, Tennessee, for the appellant, Metropolitan Government of Nashville & Davidson Co.

Braden H. Boucek, Nashville, Tennessee, for the appellees, Rachel Anderson, and P. J. Anderson.

OPINION

BACKGROUND AND PROCEDURAL HISTORY

Rachel and P.J. Anderson (“the Andersons”) moved from Chicago to Nashville in August 2013 due to Mr. Anderson’s career as an aspiring musician. The couple bought a home in the Germantown neighborhood of Nashville and began listing their home on Airbnb.com in the fall of that year.

In 2014, the Metropolitan Council, the legislative body for the Metropolitan Government of Nashville and Davidson County (“Metro”), began debating laws to address short-term rental properties. This process resulted in the passage of two ordinances in February 2015, Substitute Ordinance No. BL2014-909 and Ordinance No. BL2014-951. Under the ordinances, a “Short Term Rental Property,” or “STRP,” was defined to mean “a residential dwelling unit containing not more than four sleeping rooms that is used and/or advertised for rent for transient occupancy by guests as those terms are defined in Section 5.12.010 of the metropolitan code.” Substitute Ordinance No. BL2014-909; Ordinance No. BL2014-951. The ordinances also specifically stated that “[r]esidential dwelling units rented to the same occupant for more than 30 continuous days, Bed and Breakfast establishments, boarding houses, hotels, and motels shall not be considered Short Term Rental Property.” Substitute Ordinance No. BL2014-909; Ordinance No. BL2014-951. The primary ordinance implicated in this appeal, Ordinance No. BL2014-951, imposed a number of requirements and restrictions on homeowners seeking to operate a STRP. Among other things, it required operators of a STRP to obtain a permit, to obtain proof of liability insurance coverage, and to obey certain fire safety requirements. Ordinance No. BL2014-951. Advertising restrictions were also implemented. First, homeowners were prohibited from advertising their property for use as a STRP without having first obtained a permit. Id. However, even with a permit, homeowners were not allowed to display signs or other advertising on the property indicating that the dwelling unit was being utilized as a STRP. Id.

As is of particular relevance to this appeal, Ordinance No. BL2014-951 also placed a limit on the number of non-owner-occupied STRPs allowed. Specifically, it provided that no more than 3% of the single-family or two-family residential units within each census tract shall be permitted as non-owner-occupied STRPs. Id. No limitation was implemented regarding the overall number of owner-occupied STRPs.

-2- The Andersons obtained an owner-occupied permit in June 2015, and the following month, enforcement of the ordinances began. At the time they obtained their owner-occupied permit, the Andersons had no intention of moving from Nashville. However, things soon changed. After the Andersons obtained their permit, Mrs. Anderson’s employer proposed promoting her to an executive level position. The opportunity was appealing and offered several benefits, but in order to take the position, the Andersons would have to move back to Chicago.

For various reasons, the Andersons decided that they would like to move but still keep their home in Nashville. Because they also desired to continue offering short-term rentals of their Nashville home, they intended to convert their STRP permit from an owner-occupied permit to a non-owner-occupied permit. Although Mr. Anderson attempted to get a non-owner-occupied permit on August 19, 2015, his efforts proved unsuccessful. Because the 3% cap on non-owner-occupied permits had already been reached in the Andersons’ census tract, the request for a permit was denied.

The present litigation commenced shortly thereafter on August 26, 2015, when the Andersons filed suit against Metro in the Davidson County Circuit Court. The suit was brought in part under 42 U.S.C. § 1983 and asserted several claims, nearly all of which alleged constitutional infirmities with portions of the Metro Code. Most of the raised concerns related to alleged invalidity of Ordinance No. BL2014-951 (the “STRP ordinance”). First, the Andersons contended that there was an overlap between the definitions for hotels, bed and breakfast establishments, and boardinghouses, which were exempt from the STRP ordinance, and the definition for STRPs. Assuming they were not determined to be exempt from Metro’s new STRP ordinance, the Andersons alleged that the ordinance must be deemed unconstitutionally vague when measured against the due process clause of the Fourteenth Amendment to the federal Constitution and Article 1, Section 8 of the Tennessee Constitution. The Andersons also raised state and federal constitutional claims with respect to the advertising restrictions contained in the STRP ordinance. According to the Andersons, the advertising restrictions unlawfully abridged their free speech rights.

The Andersons’ attack on the new STRP ordinance was not limited to advertising and definitional concerns but also included challenges to the 3% cap.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Claudia Smalbein v City of Daytona Beach
353 F.3d 901 (Eleventh Circuit, 2003)
Common Cause/Georgia v. Billups
554 F.3d 1340 (Eleventh Circuit, 2009)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Lewis v. Continental Bank Corp.
494 U.S. 472 (Supreme Court, 1990)
Farrar v. Hobby
506 U.S. 103 (Supreme Court, 1992)
Sole v. Wyner
551 U.S. 74 (Supreme Court, 2007)
Diffenderfer v. Gomez-Colon
587 F.3d 445 (First Circuit, 2009)
Kansas Judicial Watch v. Stout
653 F.3d 1230 (Tenth Circuit, 2011)
Higher Taste, Inc. v. City of Tacoma
717 F.3d 712 (Ninth Circuit, 2013)
Lee Medical, Inc. v. Paula Beecher
312 S.W.3d 515 (Tennessee Supreme Court, 2010)
Tennie Martin, et.al. v. Southern Railway Company, et.al.
271 S.W.3d 76 (Tennessee Supreme Court, 2008)
Sunburst Bank v. Patterson
971 S.W.2d 1 (Court of Appeals of Tennessee, 1997)
City of Memphis, Tennessee v. Tre Hargett, Secretary of State
414 S.W.3d 88 (Tennessee Supreme Court, 2013)
Esquinance v. Polk County Education Ass'n
195 S.W.3d 35 (Court of Appeals of Tennessee, 2005)
State v. Smith
618 S.W.2d 474 (Tennessee Supreme Court, 1981)
Norma Faye Pyles Lynch Family Purpose LLC v. Putnam County
301 S.W.3d 196 (Tennessee Supreme Court, 2009)
Keith v. Howerton
165 S.W.3d 248 (Court of Appeals of Tennessee, 2004)
City of Norris v. Bradford
321 S.W.2d 543 (Tennessee Supreme Court, 1958)
McIntyre v. Traughber
884 S.W.2d 134 (Court of Appeals of Tennessee, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
Rachel Anderson v. Metropolitan Government Of Nashville & Davidson County, TN, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rachel-anderson-v-metropolitan-government-of-nashville-davidson-county-tennctapp-2018.