John Morgan, etc. vs. Cherokee Children & Family Services, Inc.

The State Comptroller sued Cherokee Children & Family Services, Inc. seeking access to Cherokee's records for an audit of the company's affairs. The Chancery Court of Davidson County held that the company's contract with the State, and Chapter 960 of the Public Acts of 2000, gave the State the right to conduct the audit. Based on our opinion in Memphis Publishing Company, et al. v. Cherokee Children & Family Services, et al., released simultaneously with this opinion, we hold that the company's contracts with the State do not make all their records public records. We also hold that to apply Chapter 960 retroactively would violate the constitutional prohibition against retrospective legislation. We therefore reverse the lower court's judgment.