George M. Greenwood, et al. v. City of Lebanon, Tennessee

The plaintiffs entered into a contract signed by the commissioner of finance for the City of Lebanon to act as the City’s insurance broker for health care benefits. The plaintiffs secured a group health care benefit contract for the City for the period from July 1, 2013 through July 1, 2014. In February 2014, the City informed the plaintiffs that it had appointed another broker and refused to pay the monthly service fees for the remaining months of the contract. The City asserted that the contract was ultra vires because it was not signed by the mayor or approved by ordinance enacted by the city council as required by the City’s charter. The trial court found the contract to be ultra vires, but determined that the City “should be equitably estopped from denying the validity of the agreement” and granted summary judgment in favor of the plaintiffs. We affirm the judgment of the trial court.