Johnson v. Hopkins

• Decision Date: 19 December 2013
• Docket Number: No. M2012–02468–SC–S09–CV.,M2012–02468–SC–S09–CV.
• Citation: 432 S.W.3d 840
• Parties: Edith JOHNSON et al. v. Mark C. HOPKINS et al.
• Court: Tennessee Supreme Court

432 S.W.3d 840

Edith JOHNSON et al.

v.Mark C. HOPKINS et al.

No. M2012–02468–SC–S09–CV.

Supreme Court of Tennessee,

at Nashville.

Oct. 2, 2013 Session.

Dec. 19, 2013.

Martin Thomas Walsh, Jr., Nader Baydoun, and Stephen C. Knight, Nashville, Tennessee, for the appellants, Edith Johnson and Lisa Miller.

James G. King, Nashville, Tennessee, for the appellees, Mark C. Hopkins and Milton Williams.

OPINION

CORNELIA A. CLARK, delivered the opinion of the Court, in which GARY R. WADE, C.J., JANICE M. HOLDER, WILLIAM C. KOCH, JR., and SHARON G. LEE, JJ., joined.

CORNELIA A. CLARK, J.

We granted permission to appeal to determine whether a provision of the unlawful detainer statute, which requires that a tenant appealing to the circuit court from a general sessions court's judgment in favor of a landlord must post a bond equal to one year's rent of the premises, applies regardless of whether the tenant has surrendered possession of the property prior to the appeal. We hold that the plain language of Tennessee Code Annotated section 29–18–130(b)(2) (2012) does not require that a tenant appealing to the circuit court from an adverse general sessions court judgment in an unlawful detainer action post a bond corresponding to one year's rent of the premises if the tenant has surrendered possession of the premises prior to the appeal. Accordingly, the cost bond that the tenants have already posted pursuant to Tennessee Code Annotated section 27–5–103(a) (2000) is sufficient to perfect their appeal and confer subject matter jurisdiction on the Circuit Court. We affirm the Circuit Court's judgment denying the landlords' motion to dismiss and remand the case to the Circuit Court for further proceedings consistent with this decision.

I. Factual and Procedural History

This interlocutory appeal began as an unlawful detainer action brought by Edith Johnson and Lisa Miller (“Landlords”) against Mark C. Hopkins and Milton Williams (“Tenants”) in the General Sessions Court for Davidson County. The record on appeal is extremely sparse and includes neither the lease nor a description of the property at issue.¹ The following factual and procedural summary is gleaned from the technical record and two sections of Landlords' brief, the latter of which Tenants stipulated as accurate in their own brief.

On June 5, 2012, Landlords filed a detainer warrant—an action to regain possession of the premises and recoup damages—against Tenants. Landlords alleged that Tenants had breached the lease as a result of their failure to pay rent on the premises located at 1520 Hampton Street in Nashville, Tennessee. Landlords sought possession of the property as well as all damages resulting from the breach of the lease, including unpaid rent and attorneys' fees. According to the warrant, Mr. Williams was served on June 7, 2012, and Mr. Hopkins was served on June 11, 2012. The hearing, originally scheduled for June 28, 2012, was postponed by agreement of Tenants and counsel for Landlords three times during the months of June and July, and ultimately was rescheduled for August 9, 2012.

On August 8, 2012, Tenants surrendered possession of the Hampton Street property. Landlords changed the locks on the premises the same day. On August 9, 2012, the date set for the hearing, Tenants did not appear at the hearing. The General Sessions Court for Davidson County entered a default judgment, granting Landlords possession of the property as well as a $42,500 judgment for past due rent and attorneys' fees.²

On August 17, 2012, Tenants filed a notice of appeal to the Circuit Court for Davidson County and posted an appeal bond for costs, pursuant to Tennessee Code Annotated section 27–5–103(a) (2000), by depositing $250.00 cash with the Clerk of the General Sessions Court. On August 30, 2012, Landlords moved to dismiss the appeal on the grounds that Tenants failed to comply with the provisions of Tennessee Code Annotated section 29–18–130(b)(2) (2012), requiring the posting of a bond equal to one year's rent, and thus failed to perfect their appeal of the General Sessions Court's judgment. Because Tenants failed to comply with the unlawful detainer statute's bond requirement, Landlords argued, the Circuit Court lacked subject matter jurisdiction over the matter. On September 27, 2012, Tenants filed a response to the motion to dismiss, arguing that a bond of one year's rent is only required when a tenant remains in possession of the premises pending appeal. Tenants argued that because they had surrendered possession, they should not be required to post such a bond.

On September 28, 2012, the Circuit Court heard Landlords' motion to dismiss. On October 4, 2012, the Circuit Court entered an order denying Landlords' motion to dismiss, reasoning that a bond for one year's rent was unnecessary because Landlords had already obtained rightful possession of the Hampton Street property when Tenants vacated the premises.

On October 19, 2012, Landlords sought and obtained the Circuit Court's permission to file a Tennessee Rule of Appellate Procedure 9 application for interlocutory appeal as to whether posting a bond equal to one year's rent under Tennessee Code Annotated section 29–18–130(b)(2) is necessary where, prior to seeking appeal, the tenant surrenders the property that is the subject of the underlying unlawful detainer action. On December 19, 2012, the Court of Appeals denied the Landlords' Rule 9 application. Landlords then filed a Tennessee Rule of Appellate Procedure 11 application for permission to appeal, which we granted.

II. Standard of Review

Subject matter jurisdiction involves the court's lawful authority to adjudicate a controversy brought before it. Chapman v. DaVita, Inc., 380 S.W.3d 710, 712 (Tenn.2012); Meighan v. U.S. Sprint Commc'ns Co., 924 S.W.2d 632, 639 (Tenn.1996). Subject matter jurisdiction is conferred by statute or the Tennessee Constitution; the parties cannot confer it by appearance, plea, consent, silence, or waiver. In re Estate of Trigg, 368 S.W.3d 483, 489 (Tenn.2012). Any order entered by a court lacking jurisdiction over the subject matter is void. Id. Therefore, subject matter jurisdiction is a threshold inquiry, which may be raised at any time in any court. Id.

Where subject matter jurisdiction is challenged, the party asserting that subject matter jurisdiction exists, in this case Tenants, has the burden of proof. Chapman, 380 S.W.3d at 712; Redwing v. Catholic Bishop for the Diocese of Memphis, 363 S.W.3d 436, 445 (Tenn.2012). A determination of subject matter jurisdiction involves questions of law; therefore, rulings on such questions are reviewed de novo on appeal, without any presumption of correctness. In re Estate of Trigg, 368 S.W.3d at 489; see also Lovlace v. Copley, 418 S.W.3d 1, 17 (Tenn.2013); Chapman, 380 S.W.3d at 712–13.

In this appeal, the existence of subject matter jurisdiction depends upon the construction of a statute. Statutory construction is also a question of law to which de novo review applies on appeal. Mills v. Fulmarque, Inc., 360 S.W.3d 362, 366 (Tenn.2012); Lind v. Beaman Dodge, Inc., 356 S.W.3d 889, 895 (Tenn.2011).

III. Analysis

A. History of the Unlawful Detainer Statute's Bond Provision

This is an unlawful detainer action. Tenn.Code Ann. § 29–18–104 (2012). Unlawful detainer is a statutory action unknown at common law. Newport Hous. Auth. v. Ballard, 839 S.W.2d 86, 89 (Tenn.1992); Robert Larry Brown, Note, Right to a Jury Trial in Forcible Entry and Detainer Actions in General Sessions Courts in Tennessee, 6 Mem. St. U.L.Rev. 59, 60 (1975) [hereinafter Brown, 6 Mem. St. U.L.Rev.]. The first statute making unlawful detainer actions a part of Tennessee law was enacted in 1821. Act of Oct. 19, 1821, ch. 14, 1821 Tenn. Pub. Acts 16. The 1821 statute also codified the common law actions of forcible entry and forcible detainer. Id.; Brown, 6 Mem. St. U.L.Rev. at 62. This statute was designed to “streamline the cumbersome and more formal common law action[s], such as ejectment, used to determine rightful possession of real property.” Newport Hous. Auth., 839 S.W.2d at 89. “The statute was intended to prevent bloodshed, violence, and breaches of the peace, too likely to arise from wrongful intrusion into the possession of another....” Cain P'ship, Ltd. v. Pioneer Inv. Servs. Co., 914 S.W.2d 452, 457 (Tenn.1996) (quoting Childress v. Black, 17 Tenn. (9 Yer.) 317, 320 (1836)).

Unlawful detainer occurs when the tenant enters by contract, either as “tenant or as assignee of a tenant, or as personal representative of a tenant, or as subtenant, or by collusion with a tenant, and, in either case, willfully and without force, holds over possession from the landlord, or the assignee of the remainder or reversion.” Tenn.Code Ann. § 29–18–104. Under the current statute, Tennessee Code Annotated sections 29–18–101 to –134 (2012 & Supp.2013),³ an unlawful detainer action may begin, as here, in the general sessions court, id. § 29–18–107.⁴ The party initiating the unlawful detainer action, here Landlords, must “give bond, with good security, to pay all costs and damages which shall accrue to the defendant for the wrongful prosecution of the suit.” Id. § 29–18–111. The action is then tried by the general sessions judge without a jury “and in all respects like other civil suits before the court of general sessions.” Id. § 29–18–119(a). An unlawful detainer action resolves possessory interests only; the merits of title “shall not be inquired into.” Id. § 29–18–119(c). If the general sessions judge decides the action in favor of the landlord, then the judgment must order the landlord “restored to possession” of the property, direct “that a writ of possession or restitution issue therefor[,]” and award “the costs of suit.” Id. § 29–18–124. If the general sessions judge decides that the landlord should recover possession, then the judge “shall be authorized and it shall be the judge's duty to ascertain the arrearage of...