The Metropolitan Government of Nashville and Davidson County, v. Nashville Park Hospitality, Inc.

Appellant, Nashville Park Hospitality, Inc. ("Nashville Park"), is the owner of the Budget Lodge, a motel in Nashville consisting of three separate buildings identified as the 100, 200 and 300 Buildings. Ninety-six suites compose the 100 and 300 Buildings, with 92 available to the public and rented on a weekly basis. The 200 Building consists of standard motel rooms which are rented nightly. Appellee, the Metropolitan Government of Nashville and Davidson County ("Metropolitan Government"), filed suit seeking to enjoin Nashville Park from operating the Budget Lodge in violation of the Hotel, Food, Service Establishment and Public Swimming Pool Inspection Act of 1985, T.C.A. § 68-14-301 et. seq. ("Act").1 After a hearing, the trial court granted Metropolitan Government's application for a permanent injunction, enjoining Nashville Park from operating Budget Lodge in violation of the Act. The court, however, refused to entertain the issue of whether the Act applied to the suites rented weekly,2 citing Nashville Park's failure to first exhaust its administrative remedies. Nashville Park has appealed, challenging that determination by the chancellor. For reasons to be discussed, we reverse that portion of the judgment holding the trial court without jurisdiction to decide the issue prior to an exhaustion of the administrative process.