Charter Lakeside Behavioral Health vs. Tennessee Health Facilities Comm., et al

This appeal involves a dispute arising out of the construction of a mental health treatment facility in Shelby County. As the facility neared completion, a corporation operating a competing facility filed a petition with the Tennessee Health Facilities Commission seeking a declaratory order that the new facility could not begin operating until it obtained a certificate of need. After the Commission declined to render a declaratory order, the competing corporation petitioned the Chancery Court for Davidson County for a declaratory judgment that the new facility could not begin operating without a certificate of need. The trial court initially dismissed the petition because of the competitor's delay in challenging the construction of the facility. After this court reversed and remanded the case for further consideration, the trial court remanded the case to the Commission to determine whether the new facility had been constructed before the certificate of need laws had been expanded to cover such facilities. On this appeal both the competing corporation and the Commission assert that the trial court erred by not rendering a declaratory judgment based on the existing administrative record. While this appeal was pending, the competing corporation sold its Shelby County facility to another corporation but retained its interest in this litigation. We have determined that this appeal no longer involves a justiciable issue because the competing corporation no longer operates a facility in Shelby County and, therefore, is not entitled to judicial relief. Accordingly, we vacate the judgment and remand the case to the trial court with directions to dismiss the petition for declaratory judgment.