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Posted by: Tanja Trezise on Jun 18, 2012

Head Comment: CORRECTED OPINION: The corrections are on pages 10 and 11. In footnote 4, the date of July" 1, 2011" has been corrected to "July 1, 2012" on both pages. The second word on page 11, "determine", has been corrected to "determined".

Court: TN Court of Appeals

Attorneys 1:

William B. Hubbard and Marc R. Jenkins, Nashville, Tennessee, for the appellants, The City of Bolivar and the Bolivar Utility Department f/k/a Bolivar Gas System and Bolivar Water & Wastewater System.

Attorneys 2:

George E. Barrett, Nashville, Tennessee and Charles H. Farmer, Jackson, Tennessee, for the appellees, Hubert Morrison, Robin Baker, Jackie Cox, Kenneth Kowen, and Whiteville Auto Parts.

Judge(s): STAFFORD

We granted this Tennessee Rule of Appellate Procedure 9 interlocutory appeal to answer the question of whether the Tennessee Revenue Bond Law, Tennessee Code Annotated Section 7-34-101, et seq., permits a private right of action on behalf of Appellees, utility rate payers, against Appellants, the City of Bolivar and its utility. The trial court denied Appellants’ motion to dismiss for failure to state a claim on the ground that Appellees could maintain a private cause of action because Tennessee Code Annotated Section 7-34-115(f) did not provide the sole remedy for violation of the statutory scheme. We hold that the Revenue Bond Law does not expressly create an individual private right of action, and that Appellees have not carried their burden to establish that the legislature intended to imply such a right. Accordingly, we reverse the judgment of the trial court and remand for entry of judgment in favor of Appellants. Reversed and remanded.