Saturday, November 19, 2011

Josh Flory: Tennessee looks to boost startups

Groupon may be the hot Internet company du jour, but it didn't spring from a traditional startup bastion like Silicon Valley or Boston.

The group-discount firm that began offering shares to the public on Friday is headquartered in Chicago, and serves as proof that startup success can happen far from the coasts. On Thursday, Tennessee officials unveiled a plan that aims to smooth the path for entrepreneurs who are looking to cultivate a big idea in the Volunteer State.

Gov. Bill Haslam and Economic and Community Development Commissioner Bill Hagerty announced that nine "entrepreneurial accelerators" will be established throughout the state, including one that will be led by the University of Tennessee's Anderson Center for Entrepreneurship and Innovation.

Lynn Youngs, executive director of the Anderson Center, said the ultimate goal is business and job creation and that a big part of the accelerator's mission will be to make the region aware of resources that already exist.

He said any applicant who comes through the door will be evaluated and steered toward their best path for success. The accelerator's bread and butter, though, will be working with companies that have strong growth potential and are nearly ready to make a pitch to investors.

Youngs said accelerators are best matched to "fast-flip opportunities," and cited web-based applications as an example of the type of opportunity that can be accelerated into the marketplace. But he also cited the strong investment in scientific research that has been made in East Tennessee. "We're not going to ignore that by any stretch of the imagination," he said.

The nine regional accelerators will each receive a $250,000 grant comprised of state and federal dollars, with the expectation that a local match of at least that much will be provided. The Knoxville accelerator effort includes partners such as Oak Ridge National Laboratory, Tech 20/20, the Oak Ridge Economic Partnership and the Knoxville Chamber.

Read the full story at the Knoxville News-Sentinel:
http://www.knoxnews.com/news/2011/nov/04/tennessee-looks-to-boost-startups/

Wednesday, November 16, 2011

Court reviews a zoning board's denial of an application for a proposed shopping center

411 PARTNERSHIP, v. KNOX COUNTY, TENNESSEE, et al. (Tenn. Ct. App. November 16, 2011)

The Knox County Board of Zoning Appeals denied plaintiff's use on review application for a proposed shopping center. Plaintiff appealed the decision to the Circuit Court by way of a Writ of Certiorari. The Trial Court upheld the Board of Zoning Appeals' decision and plaintiff appealed to this Court. We reverse the decision of the Circuit Court on the grounds the record before the Board of Zoning Appeals does not contain substantial material evidence to uphold the Board's ruling. We reverse the Judgment of the Trial Court and remand.

Opinion available at:
http://www.tba2.org/tba_files/TCA/2011/411partnership_111611.pdf

Court reviews whether a distributor or a manufacturer bears the burden of paying the bottler's tax

DR. PEPPER PEPSI-COLA BOTTLING COMPANY OF DYERSBURG, LLC v. REAGAN FARR, COMMISSIONER OF TENNESSEE DEPARTMENT OF REVENUE (Tenn. Ct. App. November 16, 2011)

An in-state bottled soft drink manufacturer argues, pursuant to the bottler's tax statute, that the in-state distributor to which it sells may pay the bottler's tax on such sales and utilize its own franchise and excise tax credit. Absent this flexibility, the manufacturer contends, equal protection guarantees are offended. The trial court granted summary judgment to the Department of Revenue, finding that the manufacturer bore the tax burden and that it could not utilize the distributor's credit. We affirm.

Opinon available at:
http://www.tba2.org/tba_files/TCA/2011/drpepper_111611.pdf

Tuesday, November 1, 2011

Court reviews whether an ordinance regulating the parking of tractor-trailers is a zoning or property maintenance regulation

TOWN OF SMYRNA, TENNESSEE v. PERRY BELL (Tenn. Ct. App. November 1, 2011)

The Town of Smyrna annexed land in 1991 that included a retail furniture store. The owner of that business kept a number of tractor-trailers parked on his property to store some of his inventory. Several years after the annexation, the town cited the owner in an attempt to enforce a municipal ordinance regulating the parking of tractor-trailers on commercially zoned property. The municipal court ruled against the owner. He appealed to the Circuit Court, which held that the ordinance in question was a zoning regulation and that the owner's use of the tractor- trailers was protected by the grandfathering provisions of Tenn. Code Ann. section 13-7-208(b)(1).

The town contends on appeal to this court that the ordinance is a property maintenance regulation rather than a zoning regulation and that the owner's use of the tractor-trailers is therefore not entitled to the protection of the grandfather clause. We agree, and we reverse the Circuit Court because the proof does not indicate that compliance with the ordinance would substantially interfere with the store owner's use of the property as a retail furniture business. Thus, it cannot be considered a zoning ordinance as applied to him under the standard established by our Supreme Court in Cherokee Country Club v. City of Knoxville, 152 S.W.2d 466 (Tenn. 2004).

Opinion available at:
http://www.tba2.org/tba_files/TCA/2011/townofsmyrna_110111.pdf

Court reviews whether a quasi-contract existed between a website developer and an LLC

ICG LINK, INC. v. PHILIP STEEN ET AL. v. TN SPORTS, LLC v. ICG LINK, INC. (Tenn. Ct. App. November 1, 2011)

This is a dispute concerning payment for website development services. The plaintiff, a website development company, filed suit against the defendants, an LLC and its managing member in his individual capacity, alleging breach of contract and unjust enrichment.

The trial court found there was no express contract between the parties due to a lack of mutual assent. The court found there was a quasi-contract and that plaintiff was entitled to the reasonable value of its services, minus the costs incurred by defendants in attempting to repair the defects in the website. Last, the court held the individual defendant personally liable for the judgment.

We affirm the finding of a quasi-contract and the personal liability of the individual defendant; however, we modify the trial court's monetary award, finding the plaintiff is entitled to recover a judgment of $13,952.88. The court's holding is affirmed in all other respects.

Opinion available at:
http://www.tba2.org/tba_files/TCA/2011/icglink_110111.pdf