American Heritage Apartments, Inc. v. The Hamilton County Water and Wastewater Treatment Authority, Hamilton County, Tennessee

We granted permission to appeal to determine whether a customer who seeks to challenge monthly rates charged by its sewer service provider must exhaust administrative remedies before filing suit. The plaintiff apartment complex filed this action individually and as a class representative, arguing that the monthly charge assessed by the defendant water and wastewater treatment authority is unlawful. In response, the defendant asserted that a customer who seeks to dispute the rates charged must first follow the administrative procedures provided in the Utility District Law of 1937, Tennessee Code Annotated sections 7-82-101 to –804 (2015). On this basis, the water and wastewater treatment authority sought dismissal of the lawsuit for failure to exhaust administrative remedies. The trial court dismissed the lawsuit for failure to exhaust administrative remedies, and the Court of Appeals reversed. We hold that the administrative procedures in Part 4 of the Utility District Law of 1937 do not apply to a rate challenge filed by an individual customer against a water and wastewater treatment authority, so we agree with the Court of Appeals that the trial court erred in dismissing the lawsuit for failure to exhaust administrative remedies. We affirm the remainder of the Court of Appeals’ decision, except that we vacate the trial court’s alternative ruling on class certification and remand that issue to the trial court for reconsideration.