City of New Johnsonville v. Kevin E. Handley, et al. & Gene Plant, et al., v. Kevin E. Handley, et al.

This appeal involves protracted litigation over a parcel of land conveyed by the City of New Johnsonville, Tennessee, to a member of the New Johnsonville City Council. The mayor, on behalf of the city, subsequently filed suit against the councilman seeking to nullify the transaction. During the pendency of that litigation, several taxpayers filed their own suit against the councilman alleging the same causes of action set forth in the city’s complaint. The city and the councilman ultimately settled their lawsuit. The taxpayers’ lawsuit continued, ultimately naming the city as a defendant.  The trial court partially granted the defendants’ motions for summary judgment by ruling that the taxpayers did not have standing to contest the land transaction between the city and the councilman.  The court ruled that the taxpayers did have standing to continue with their other causes of action concerning allegations that the councilman engaged in illegal business transactions with the city.  The taxpayers subsequently took a voluntary nonsuit on their remaining claims and filed an appeal to this Court to contest the trial court’s grant of summary judgment on their claim regarding the land transaction. We vacate the trial court’s decision regarding the land transaction, and we remand for further proceedings not inconsistent with this opinion.