Ernest F. Phillips vs. County of Anderson, et al

The defendants, Anderson County and the City of Clinton, entered into an agreement to jointly finance the development of an industrial park to be owned and operated by the City. The plaintiff, Ernest F. Phillips, brought this action for declaratory and injunctive relief, alleging that the County's financing of a portion of the industrial park is illegal and unconstitutional and that the defendants violated various statutory requirements for the development of industrial parks. The trial court granted the defendants summary judgment. The plaintiff appeals, arguing: (1) that the County's use of bond proceeds to finance its portion of the industrial park's infrastructure costs constitutes a lending or giving of credit to or in aid of a corporation within the meaning of Article II, Section 29 of the Tennessee Constitution; (2) that the agreement between the County and the City is not legally sufficient under the Industrial Park Act; (3) that the County obtained a statutorily-required certificate of public purpose and necessity by fraud and misrepresentation; and (4) that the County's bond resolutions are fatally defective and call for prohibited expenditures. The City argues (a) that the plaintiff lacks standing to challenge the City's actions and (b) that the plaintiff's appeal is frivolous. We affirm the grant of summary judgment to the defendants but do not find the plaintiff's appeal to be frivolous.