RESOLUTION NO. RS2009-1042

A resolution authorizing the Metropolitan Department of Law to compromise and settle all Teen Challenge International, Nashville Headquarters’ claims against The Metropolitan Government of Nashville and Davidson County for the total amount of $750,000.00, and directing that this amount be paid from the Judgments and Losses Fund.

WHEREAS, on February 10, 2007, Ordinance No. BL2006-1260 of the Metropolitan Government, which amended the Metropolitan Zoning Code by deleting “Rehabilitation Services” as a permitted use in areas zoned AG and AR2a, became effective; and

WHEREAS, this ordinance effectively blocked Teen Challenge International, Nashville Headquarters’ (“Teen Challenge”) ability to use property it had purchased at 2165 Baker Road, in northern Davidson County (“Property”), to provide residential rehabilitative therapy for more than eight people because it was unable to obtain zoning approval for a residential drug and alcohol rehabilitation facility; and

WHEREAS, these actions violated Teen Challenge’s rights under the federal Fair Housing Act (“FHA”), 42 U.S.C. 3601 et seq., the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12132 et seq., and the Equal Protection Clause of the United States Constitution; and

WHEREAS, Teen Challenge filed a lawsuit in 2007 to recover damages it incurred as a result of these actions of the Metropolitan Government; and

WHEREAS, a jury in the United States District Court for the Middle District of Tennessee awarded Teen Challenge damages in the amount of $967,995.00 in September, 2008; and

WHEREAS, the District Court also awarded Teen Challenge attorneys’ fees and costs in the amount of $135,664.58 as well as a yet-undetermined amount of pre- and post-judgment interest on the damages award; and

WHEREAS, the Metropolitan Government appealed the amount of the judgment in favor of Teen Challenge to the United States Court of Appeals for the Sixth Circuit; and

WHEREAS, after investigation and negotiation, the Department of Law believes that the settlement listed in Section One is fair and reasonable and in the Metropolitan Government’s best interest, and the Department of Law recommends that this lawsuit be compromised and settled.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. The Metropolitan Department of Law is authorized to compromise and settle the lawsuit Teen Challenge International, Nashville Headquarters et al. v. Metropolitan Government, currently pending in the Sixth Circuit Court of Appeals, Docket No. 09-5941, for the sum of $750,000.00, and directs that this amount be paid from the Judgments and Losses Fund.

Section 2. That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Ronnie Steine

LEGISLATIVE HISTORY

Referred to: Budget & Finance Committee
Introduced: November 17, 2009
Adopted: November 17, 2009
Approved: November 19, 2009
By: