Metropolitan Government of Nashville v. James E. Brown, et al.

The matters at issue arise from the demolition of a dilapidated residential structure by the Metropolitan Government of Nashville and Davidson County. Following the demolition of the property, the Metropolitan Government filed this action to recover the cost of demolition. The homeowners, who purchased the property at a delinquent property tax sale after the Metropolitan Government had filed Notice of Violation with the Register of Deeds Office, but prior to the structure’s demolition, responded by filing a counter-claim for inverse condemnation. The homeowners contended that the Metropolitan Government had no right to demolish their property and was not entitled to recover its costs for demolition, due to the intervening delinquent property tax sale. They also asserted in the counterclaim that the Metropolitan Government intentionally destroyed their property without the right to do so and, as a consequence, they are entitled to recover the value of the structure demolished. Both parties filed motions for summary judgment. The trial court ruled in favor of the homeowners on both motions by summarily dismissing the Metropolitan Government’s claim for reimbursement and granting summary judgment to the homeowners on their inverse condemnation claim. The trial court then awarded the homeowners damages for the value of the structure and attorney’s fees; however, the court denied their request for prejudgment interest. Both parties appeal. We affirm the summary dismissal of the Metropolitan Government’s claim and the grant of summary judgment to the homeowners on their inverse condemnation claim. We also affirm the award of damages for the value of the structure and the amount of attorney’s fees awarded to the homeowners. We reverse on the issue of prejudgment interest, finding that the award of prejudgment interest in inverse condemnation cases is mandatory under Tenn. Code Ann. § 29-17-813(a).