WPC5 # VUNa % 0(bw.4 ' 6 0J> 0T 0^ 0h: 0r 0| 0 0 1u 0d U> B) DC AM)U*vv~ B-vJ D3 0@P AO 0D D/ BHP LaserJet 4Si/4SiMX PS 600dpiPSCRIPT0nLH(9 Z 6Times New Roman RegularX($- -PUEӀD x93|x2 0Indent123  2" 0Indent20 23  2, 0Indent30 0 23  26 0Indent40 0 0 23  2@ 0Indent50 0 0 0 23  2J 0Indent60 0 0 0 0 23  2T 0Indent70 0 0 0 0 0 23  2^ 0Indent80 0 0 0 0 0 0 23   ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P 8Mac DefaultMac Default ` X<  9p`(&Times New Roman% Line 7 d7Border 1dd- C << G<  9p`(Arial  !  #d#  ""   YYY FILED"XAugust29,1997CecilW.CrowsonAppellateCourtClerk  PtPtHH(FG(HH(d'h dStyl{WP}01  HH  2$HH  Geneva  <Px443!#4$*$$*$ KK  Geneva  Geneva .,6 Geneva   h HD: Geneva  h HD: Geneva %%%%'dxd("$    -C<< CLevel 1Level 2Level 3Level 4Level 5($$   1  ' dxdP Pd ! .          \RA'\\RA'\7bXXdd7    CHARTERLAKESIDEBEHAVIORAL )HEALTHSYSTEM,   ) DavidsonChancery      ) No.953903III Plaintiff/Appellant,   )      ) VS.      )      ) TENNESSEEHEALTHFACILITIES )COMMISSION,    ) AppealNo.      ) 01A019611CH00530̜R!# A1-j|+`  `@Rߛ Defendant/Appellee,   )and      )      )COMPASSINTERVENTIONCENTER, )      ) InterveningDefendant/Appellee. )@ INTHECOURTOFAPPEALSOFTENNESSEE@ MIDDLESECTIONATNASHVILLE@ APPEALFROMCHANCERYCOURTOFDAVIDSONCOUNTY@ ATNASHVILLE,TENNESSEE@ HONORABLEROBERTS.BRANDT,CHANCELLOR JohnKnoxWalkupAttorneyGeneral&ReporterMichelleK.Hohnke#16736AssistantAttorneyGeneral1510ParkwayTowers404JamesRobertsonParkwayNashville,TN372430499ATTORNEYSFORDEFENDANT/APPELLEEANDTENNESSEEHEALTHFACILITIESCOMMISSIONHaroldW.Fonville,II,#16685FARRIS,MATHEWS,GILMAN,BRANAN&HELLENOneCommerceSquare,Suite2000Memphis,TN38103ATTORNEYFORCOMPASSINTERVENTIONCENTER,INTERVENINGDEFENDANT/APPELLEEWilliamH.West#005543STOKES&BARTHOLOMEW424ChurchStreet,Suite2800Nashville,TN37219ATTORNEYFORPLAINTIFF/APPELLANT   REMANDED. X       HENRYF.TODD     PRESIDINGJUDGE,MIDDLESECTIONCONCUR:̜SAMUELL.LEWIS,JUDGEBENH.CANTRELL,JUDGE CHARTERLAKESIDEBEHAVIORAL )HEALTHSYSTEM,   ) DavidsonChancery      ) No.953903III Plaintiff/Appellant,   )      ) VS.      )      ) TENNESSEEHEALTHFACILITIES )COMMISSION,    ) AppealNo.      ) 01A019611CH00530 Defendant/Appellee,   )      )and      )      )COMPASSINTERVENTIONCENTER, )      ) InterveningDefendant/Appellee. ) @  OPINIONX    ThecaptionedplaintiffhasappealedfromanonjuryjudgmentoftheTrialCourtdismissingsaidplaintiffssuitforadeclaratoryjudgment.   THEPARTIES    Theplaintiffdescribesitselfasa providerofmentalhealth,psychiatric,andalcoholanddrugabuseservices. TennesseeHealthCareFacilitiesCommission(theCommission)isanadministrativeagencycreatedbyT.C.A.6811104whosepowersanddutiesaredefinedinT.C.A.6811105,including:   `   `  (1)Receiveandconsiderapplicationsforcertificatesofneed,toreviewrecommendationsthereon,andtograntordenycertificatesofneedonthebasisofthemeritsofsuchapplicationswithinthecontextofthelocal,regionalandstatehealthneedsandplans,including,butnotlimitedto,thestatehealthplandevelopedpursuantto6811125,inaccordancewiththeprovisionsofthispart: (2)Promulgaterulesforthefollowingpurposes:  (A)Establishingspecific,uniformguidelines  andprocedurestobeusedbyallagenciesand  contractorsinreviewingapplicationsfora  certificateofneed;          (D)Establishingprocedurestopermita  reviewbycompetinghealthcarefacilitiesofan  applicationforacertificateofneed,including  noticeofintentandapplicationforms;   `        (Emphasissupplied) T.C.A.6811106providesinpertinentpartasfollows:   `   `  6811106.Certificatesofneed .(a)OnorafterApril12,1993,nopersonmayperformthefollowingactionsinthestateexceptafterapplyingforandreceivingacertificateofneedforthesame:(1)Theconstruction,development,orotherestablishmentofanytypeofhealthcareinstitution;  ӄ  (3)Inthecaseofahealthcareinstitution,anychangeinthebedcomplement,regardlessofcost,which:            `  (A)Increasesbyone(1)ormorethetotalnumberof licensedbeds; (B)Redistributesbedsfromacutetolongtermcare categories; (C)Redistributesbedsfromanycategoryto  rehabilitation,childandadolescentpsychiatric,oradult psychiatric;or  ӄ  (4)Initiationofanyofthefollowinghealthcareservices:hospice,outpatientsurgery,psychiatric,rehabilitationorhospitalbasedalcoholanddrugtreatmentforadolescentsprovidedunderasystematicprogramofcarelongerthantwentyeight(28)daysmethadonetreatmentprovidedthroughafacilitylicensedasanonresidentialmethadonetreatmentfacility.(Emphasissupplied)       T.C.A.6811108providesinpertinentpartasfollows:      (c)Acertificateofneedisvalidforaperiodnottoexceedthree(3)years(forhospitalprojects)andtwo(2)years(forallotherprojects)fromthedateofitsissuanceandaftersuchtimeshallexpire;provided,thatthecommissionmay,ingrantingthecertificateofneed,allowlongerperiodsofvalidityforcertificatesofneedforgoodcauseshown.               OnNovember14,1995,theCommissiondismissedChartersapplicationforadeclaratoryorderthatintervenormustapplyforandobtainacertificateofneed. OnDecember14,1995,Charterfiledthepresent ComplaintforDeclaratoryJudgment. OnFebruary15,1996,Compassintervenedandanswereddenyingthatthecomplaintstatedacauseforrelief,denyingviolationoflawandassertingthatCompassanditspredecessorshad madesubstantialeffortstowardopeningsuchafacilitiesforanumberofyears,andthatplaintiffhadneglectfullyandunreasonablydelayedinseekingrelief,andclaimingwaiverandestoppel. OnFebruary29,1996,theCommissionfileda MotiontoDismissand/orMotionforSummaryJudgmentonthefollowinggrounds: 1. LackofStanding 2. Failuretofollowrequisiteprocedure. 3. Failuretostateaclaimforrelief TheTrialJudgefiledamemorandumstatinginpart:   `   `  TheGeneralAssemblyin1993changedthedefinitiontoincludea mentalhealthresidentialtreatmentfacility.AnentityknownasT.C.Companyobtainedadeterminationin1993thatthenewrequirementdidnotapplytotheShelbyCountyfacility.AccordingtotheinformationsuppliedtotheCommission,asubstantialinvestmenthadbeenmadeby1993,buttheprojecthadbeendelayedbylanduseconsiderationsoutofthecontroloftheentitiesintendingtobuildthefacility.CompassnowoperatesthefacilityunderalicensegrantedoǹFebruary16,1996by(sic)fromtheTennesseeDepartmentofMentalHealthandMentalRetardation. PursuanttotheUAPA,Tenn.CodeAnn.45223,Lakeside,theplaintiff,onSeptember19,1995,petitionedtheCommissionforadeclaratoryrulingthataCONshouldhavebeenrequiredforthefacility.TheCommissiondeclinedtoissuethedeclaratoryrulingandorderedthattheissue beforwardedontoChanceryCourt. Asnoted,thequestionofwhethertheShelbyCountyfacilitywasrequiredtoobtainaCONwasfirstdecidedin1987.Baseduponthatdetermination,andtheonein1993,thedevelopersproceededwiththeirplans.Lakesidetooknoactionin1993or1994.ItwaiteduntilSeptember,1995. Lakesidesimplywaitedtoolatetoits(sic)seekitsdeclaratoryruling.Itcouldhaverequestedtherulingbackin1993whenthelawwaschanged,butitdidnot.EveninthisCourt,Lakesidehasbeendilatory.ItfiledthissuitonDecember14,1995andhasdonenothingsincethentomovethecase.Inthemeantime,thefacilityhasobtaineditslicenseandopened. Moreover,Lakesidehasneitherallegednorprovenanyfactsthatshowthatithasstandingtomaintainthissuit.TheonlystandingassertedisthatLakesideisacompetitoroftheNonconnahfacility.Nootherfactsareallegedorproven.Thisisinsufficientasamatteroflaw,LeagueCentralCreditUnionv.Mottern,660S.W.2d787(Tenn.Ct.App.1983). Lakesidesdeclaratorysuitisaccordinglydismissed.   `     AppellantpresentsthefollowingissuesforreviewbythisCourt:   `   ` 1. TheChancellorerredbyfindingthattheappellanthasbeen dilatoryand waitedtoolatetoseekitsdeclaratoryruling(T.R.107108).2. TheChancellorerredbelowbyfindingatT.R.108thattheappellanthadnostandingtomaintainthisdeclaratoryjudgmentaction.3. TheChancellorerredbelowbyfailingtocorrecttheerroroftheHealthFacilitiesCommissioninwaivingtheGeneralAssemblysrequirementoftheissuanceofaCONfortheestablishmentofaparticulartypeofahealthcareinstitution.   `       SECONDISSUESTANDING    Acompetitorhasstandingtoresistanapplicationforacertificateofneed.T.C.A.6811106,HumanaofTennesseev.TennesseeHealthFacilitiesCommission,Tenn.1977,551S.W.2d664,661.Wehold,therefore,thatacompetitorhasstandingtoasktheHealthFacilitiesCommissionforadeclaratoryjudgmentthatanentitybuildingatreatmentcentermusthaveacertificateofneed.SeeMorristownEmergencyandRescueSquadv.VolunteerDevelopmentCo.,793S.W.2d262(Tenn.App.1990).   FIRSTISSUEDELAY    ThisCourtrespectfullydisagreeswiththeconclusionoftheChancellorthatthefactsevidencedbythisrecordjustifydismissalongroundsofdelayinseekingrelief.TheparticulartypeoffacilitywhichCompassanditspredecessorshadbeentryingtoinitiatewasnotrequiredbystatutetohaveacertificateofneeduntiltheenactmentofT.C.A.6811106,quotedaboveonApril12,1993.PlaintiffsapplicationtotheCommissionforadeclaratoryorderwasfiledonSeptember19,1995.TheanswerofCompassadmitstheallegationofthecomplaintthattheofficialopeningdateofitsfacilityis projectedtobeJanuary11,1996. Onthebasisoftherecordbeforeus,wecannotsayasamatteroflawthattheplaintiffsdelayinfilingsuitrequiresthedismissalofitscomplaint.WethinktheChancellorshouldhaveaddressedthemeritsoftheaction.    THIRDISSUE̜FAILURETOCORRECTERROROFCOMMISSION   Ӝ̛ BaseduponourdeterminationthattheChancellorshouldhaveaddressedthemeritsoftheactionbelow,wepretermitthisissue. ThecauseisremandedtotheTrialCourtforatrialonthemerits.TheTrialCourtmayseefittoreachitsconclusionsuponthepresentrecord,itmayrequirethepresentationoffurtherevidencetotheTrialCourt,oritmayremandtotheCommissionfortheproductionofaproperadministrativerecord.Costsofthisappealaretaxedagainsttheappellant.   ԜREMANDED. Xԛ      `  ___________________________________      HENRYF.TODD      PRESIDINGJUDGE,MIDDLESECTION̜ ̛CONCUR:____________________________SAMUELL.LEWIS,JUDGE____________________________BENH.CANTRELL,JUDGE