State Supreme Court Permits Continued Development Of Franklin County Subdivision

Monday, November 19, 2012

The Tennessee Supreme Court on Monday upheld a decision of the Chancery Court for Franklin County to permit the continued development of Cooley’s Rift, a 1,400-acre residential development near Monteagle, despite objections from some original homeowners to changes in the development plan.

In 2005, after the president of the original developer of Cooley’s Rift died, New Life Development Corp. purchased the real property and the rights to develop Cooley’s Rift.  Several existing property owners objected to New Life Development’s revised plans for the property and filed suit in the Chancery Court for Franklin County.  The trial court dismissed property owners’ suit, but in 2009, the Court of Appeals instructed the trial court to decide whether the revised plans were contrary to implied restrictions in the subdivision plat or the development documents.

After the case was returned to the trial court, most of the homeowners in Cooley’s Rift approved changes in the restrictive covenants and the charter of the homeowners’ association that resolved the issues raised by the Court of Appeals.  However, the dissatisfied property owners filed a second suit challenging the validity of these changes.  The trial court again upheld the actions of New Life Development and the majority of the property owners.  The property owners who objected to New Life Development’s plans again appealed to the Court of Appeals. 

In 2011, the Court of Appeals decided that New Life Development and the homeowners’ association had followed the correct procedures to amend the restrictive covenants and the charter of the homeowners’ association.  However, the court also decided that the trial court should conduct another hearing to determine whether these amendments were reasonable.  In addition, the court ordered the trial court to determine whether any information on the development’s recorded plats provided a basis for imposing restrictions on the development.  New Life Development appealed this decision to the Supreme Court.

In a unanimous opinion, the court ruled that the homeowners’ association had validly adopted the amendments.  In addition, the court decided that Tennessee law did not require the courts to inquire into the reasonableness of the amendments to the restrictive covenants approved by a super-majority of the property owners.  Instead, the court held that the amendments should be evaluated under an arbitrary and capricious standard and that the Cooley’ s Rift amendments were neither arbitrary nor capricious.  Lastly, the court decided that the recorded plat did not provide a basis for implied restrictions on development. 

To read the R. Douglas Hughes v. New Life Development Corp. opinion, authored by Justice William C. Koch, Jr., visit TNCourts.gov.


Tennessee Housing Development Agency Awards Habitat For Humanity With State Funding

Habitat for Humanity of Tennessee, an organization supporting 50 Habitat affiliates serving 62 counties throughout Tennessee, received a $500,000 grant from the Tennessee Housing Development Agency’s Housing Trust Fund toward the construction of 30 homes statewide.   Locally, Habitat for Humanity of Greater Chattanooga Area was  given an allocation of $15,500 ... (click for more)

Chattanooga Collaborative Senior Housing Concept Presented Thursday

The Chattanooga Collaborative Senior Housing concept was presented outlining a model for a shared lifestyle in an urban setting to a group of senior citizens at the Mean Mug Coffeehouse on Thursday.  The group seeks additional seniors (55 and up) to join with them in establishing a model in Chattanooga that encourages community engagement and longer life by design.  “What ... (click for more)

Two North Shore Sold To Pennsylvania Real Estate Firm For Almost $24 Million

The Two North Shore commercial development on Manufacturers Road in North Chattanooga has been sold to a Pennsylvania real estate firm for  $23,983,363. Steve Arnsdorff, who developed the successful center from the ground up and has continued to manage it, said the deal closed last week. He said the sale for the property at 319 Manufacturers Road is to Stoltz Real Estate ... (click for more)

Cold, Wet Front To Make For Chilly And Damp Trick Or Treating; Snow Showers Possible Saturday

A surge of cold, moist air will make for less-than-ideal trick or treat conditions on Halloween night. Temperatures are expected to dip below freezing this weekend. There is a possibility of snow showers in Chattanooga on Saturday. Here is the latest forecast: Today Showers likely, mainly after 5pm. Mostly cloudy, with a high near 58. Calm wind becoming northwest ... (click for more)

Thanks For Publishing The Stokes Photo Book

I pre-ordered the Stokes Photo Book and picked it up Wednesday . The covers and content are very high quality and contain photos you will not see anywhere else.  This book of photos is worth much more than $35.  I have seen many historic photos of my hometown Chattanooga, but this collection is amazing. My favorites are National Cemetery, Confederate Cemetery near ... (click for more)

Roy Exum: Saban: ‘Ratings Don’t Matter’

When the first College Football Playoff rankings were released earlier this week, Alabama football coach Nick Saban got it right on the button when he shrugged, “I don't even care, to be honest with you." "To me, none of it matters, What does it matter?” he laughed at the Tide’s No. 6 ranking. “I mean, it only matters where you end up at the end. So what matters to us is how ... (click for more)