Steppach v. Thomas

• Decision Date: 28 February 2011
• Docket Number: No. W2010–00606–COA–R3–CV.,W2010–00606–COA–R3–CV.
• Citation: 346 S.W.3d 488
• Parties: Nathan E. STEPPACH, Jr.v.William H. THOMAS, Jr., et al.
• Court: Tennessee Court of Appeals

346 S.W.3d 488

Nathan E. STEPPACH, Jr.

v.William H. THOMAS, Jr., et al.

No. W2010–00606–COA–R3–CV.

Court of Appeals of Tennessee, Western Section, at Jackson.

Nov. 16, 2010 Session.Feb. 28, 2011.Application for Permission to Appeal

Denied by Supreme Court

July 15, 2011.

David Wade and J. Lewis Wardlaw, Memphis, Tennessee, for the appellant, Nathan E. Steppach, Jr.Allan J. Wade and Brandy S. Parrish, Memphis, Tennessee, for the appellees, City of Memphis and Memphis City Council.

OPINION

J. STEVEN STAFFORD, J., delivered the opinion of the Court, in which ALAN E. HIGHERS, P.J., W. S., and HOLLY M. KIRBY, J., joined.J. STEVEN STAFFORD, J.

This is the second appeal of this case, which arises from the grant of a writ of certiorari by the Shelby County Chancery Court. Upon review of the Memphis City Council's record, the trial court found that the Appellee City had not acted arbitrarily, capriciously, or illegally in either approving a planned development, or in approving the companion street closure. The trial court granted partial summary judgment in favor of the City, thereby affirming the City Council's action in approving the planned development. The issue of the companion street closure proceeded to hearing, with the trial court ultimately affirming the City Council's decision. Appellant appeals, arguing that the City Council's decision was made in violation of the Memphis City Charter and ordinances, and that the decision was the product of corruption within the City Council. Discerning no error, we affirm the action of the trial court and remand for further proceedings.

The relevant facts are set out in this Court's previous opinion, Steppach v. Thomas, No. W2008–02549–COA–R3–CV, 2009 WL 3832724 (Tenn.Ct.App. Nov. 17, 2009). In the interest of continuity, we review those facts here. On February 21, 2006, the Memphis City Council (together with the City of Memphis, “City Defendants,” or “Appellees”) considered companion Agenda Items 37 and 38 concerning a planned development located on the northwest corner of Poplar Avenue and Reddoch Street (the “Planned Development”), and a companion street closure at the northern Reddoch Street–Poplar Avenue intersection (the “Street Closure”). Steppach, 2009 WL 3832724, at *1.¹ The proposed Planned Development would be located on the northwest corner of the intersection of Poplar Avenue and Reddoch Street. Reddoch Street is a north-south road, which intersects Poplar Avenue at a four-way intersection. The continuation of Reddoch Street, to the south of Poplar, is a cul-de-sac street named Reddoch Cove. Across Reddoch Street from the proposed Planned Development, i.e., on the northeast corner of the intersection of Poplar Avenue and Reddoch Street, are the Colonial Apartments, which are owned by the Harry Dermon Trust. There was evidence presented to the City Council that the property where the proposed Planned Development is located is the only single-family-residential zoned property with frontage on Poplar Avenue within more than five-hundred feet, and it is located directly between a multistory office building and a multi-family residential apartment complex. At the time of the application, the property at 878 Reddoch Street (the “Subject Property”) was owned by William H. Thomas, Jr., who made the initial applications for the Planned Development and Street Closure. Steppach, 2009 WL 3832724, at *1. The companion Street Closure would close Reddoch Street to through traffic at Poplar Avenue. Id.

The interested residents of the Arlington Park neighborhood, where the proposed Planned Development would be located, hired an attorney to appear on their behalf at the February 21, 2006 City Council hearing. According to the City Council's record, the majority of neighborhood residents supported the proposed Planned Development, but only if the companion Street Closure was approved. Specifically, the majority of the Reddoch Street residents had concerns about the volume of existing traffic on Reddoch Street and the risk of injury to children and residents of the street from the heavy traffic. Concerning the residents of the Colonial Apartments, which are located on the northeast corner of Reddoch Street and Poplar Avenue, its attorney presented evidence to the City Council that the Colonial Apartment residents used Reddoch Street as a through-street in order to avoid making left turns onto Poplar Avenue. The residents of the Colonial Apartments have ingress and egress directly onto Poplar Avenue, but do not have direct access to Reddoch Street. Evidence was presented that, at that time, and in order to proceed east onto Poplar Avenue, the Colonial Apartment residents turned right out of their driveway onto Poplar Avenue, then turned right onto Reddoch Street, then right onto Aladdin Avenue, then right onto Yates Road, which they followed back to Poplar Avenue in order to proceed east onto Poplar Avenue by turning left at the traffic light. There was also evidence presented to the City Council that the Reddoch Street Closure is generally in conformance with the City of Memphis and Shelby County Subdivision Regulations (“Subdivision Regulations”), which permit one-thousand-foot cul-de-sacs to accommodate a maximum of thirteen to twenty-five lots on the cul-de-sac. The minority opposition to the Street Closure came from nonresidents of Reddoch Street, who presently use Reddoch Street as a through-street.

After discussion, which included the Memphis and Shelby County Office of Planning and Development's (“O.P.D.”) recommendation that the applications be rejected because they allegedly failed to meet the Subdivision Regulation requirements, the Council voted 12–0 to approve the Planned Development, and voted 9–2 to approve the companion Street Closure. Steppach, 2009 WL 3832724, at *1. On April 10, 2006, Appellant Nathan E. Steppach, Jr. challenged the action of the City Council by filing a Petition for Writ of Certiorari and Injunctive Relief in the Shelby County Chancery Court. Id. According to his petition, Mr. Steppach is the owner of real property, which “is in close proximity to the site of the proposed planned development.” Id.

On April 13, 2006, Mr. Thomas transferred the Subject Property to First Capital Bank. Steppach, 2009 WL 3832724, at *1. Following the transfer, Mr. Steppach was allowed to amend his petition to include First Capital Bank as a defendant. Id. By his first amended petition for writ of certiorari, Mr. Steppach asked the court to: (1) issue a writ of certiorari, (2) find that the Council's approval of the Planned Development was fraudulent, corrupt, and/or illegal on grounds that the Council failed to follow its own procedures, (3) declare the Street Closure null and void, and (4) enjoin Mr. Thomas and First Capital from violating the subdivision's restrictive covenants. Id. ²

On July 16, 2006, the City Defendants moved for summary judgment on grounds that the actions of the City Council were neither arbitrary, nor capricious, but were allegedly within the broad discretionary authority vested in the Council by the Charter of the City of Memphis. Steppach, 2009 WL 3832724, at *1. On July 20, 2006, the court entered a Consent Pretrial Order, which stated that “all matters unrelated to the final decisions of the Memphis City Council appealed from in the petition [i.e., the issue of whether the Planned Development violates the restrictive covenants] shall be tried separately.” Id.

On August 1, 2006, Mr. Thomas filed a motion to dismiss for failure to state a claim upon which relief may be granted. Steppach, 2009 WL 3832724, at *1. Specifically, Mr. Thomas argued that, because he had sold the Subject Property to First Capital Bank, he was no longer a necessary party to the lawsuit. Mr. Steppach opposed both the City Defendant's motion for summary judgment and Mr. Thomas' motion to dismiss. Id.

The City Defendant's motion for summary judgment was heard on May 9, 2007. Steppach, 2009 WL 3832724, at *2. On May 30, 2007, the court entered an Order, granting the motion in part, and denying it in part. Id. Specifically, the court held that “the City's Motion ... regarding [the] Reddoch Street Planned Development ... is granted and the City's motion ... regarding the Reddoch Street Closure ... is ... denied and shall stand trial.” Id. Mr. Thomas' motion to dismiss was heard on June 29, 2007, and by Order of July 12, 2007, the trial court granted Mr. Thomas' motion, thereby dismissing him from the lawsuit. Id.

On September 23, 2008, the issues remaining in Mr. Steppach's petition for writ of certiorari were heard. Steppach, 2009 WL 3832724, at *2. At this point, the trial court had ruled on the City Council's action regarding the Planned Development and had granted summary judgment in favor of the City Defendants on that issue only. Id. The court had dismissed Mr. Thomas from the lawsuit and had specifically reserved the issue of the restrictive covenants for separate hearing. Id. Consequently, the sole issue for hearing on September 23, 2008 was the Street Closure. Id. Following the hearing, on October 9, 2008, the court entered its “Final Decree Denying Plaintiff's Petition for Writ of Certiorari.” ³ Id. Therein, the court found, inter alia, that Mr. Steppach failed to establish that the Council acted illegally or arbitrarily in reaching its decision to close Reddoch Street. Id. Based upon this finding, the trial court affirmed its May 30, 2007 order (granting the City's motion for summary judgment regarding the Reddoch Street Planned Development) and denied Mr. Steppach relief with respect to the Council's resolutions approving the Reddoch Street Planned Development and the Reddoch Street Closure. The court specifically directed the entry of a final decree “approving the Reddoch Street Planned Development ... and the Reddoch Street Closure.” Because the issue of the restrictive covenants was still pending, the trial court included Tenn. R....