The City of Cleveland v. The Health Services and Development Agency, State of Tennessee, et al.

This appeal concerns opposition by the City of Cleveland, Tennessee (“the City”) to an application by Middle Tennessee Treatment Centers, LLC, d/b/a Cleveland Comprehensive Treatment Center (“CCTC”) to operate a nonresidential, substitution-based treatment center for opiate addiction within the City.  The City filed a petition for declaratory judgment in the Chancery Court for Davidson County (“the Trial Court”) against the Tennessee Health Services and Development Agency (“the Agency”) seeking to have the certificate of need granted for CCTC revoked on grounds that CCTC failed to provide proof of service upon the City by certified mail, return receipt requested, in contravention of Tenn. Code Ann. § 68-11-1607(c)(9)(A).  CCTC intervened in the case.  CCTC and the Agency (“Defendants,” collectively) filed motions to dismiss.  After a hearing, the Trial Court granted Defendants’ motions to dismiss for failure to state a claim.  The City appeals.  We hold, inter alia, that the purpose of the notice provision in Tenn. Code Ann. § 68-11-1607(c)(9)(A) is to afford the relevant officials an opportunity to participate in an Agency hearing on whether a certificate of need is granted; proof of receipt is required.  We, therefore, reverse the judgment of the Trial Court and remand for further proceedings consistent with this Opinion.