I N THE COURT OF APPEALS OF TENNESSEE EASTERN SECTI ON FILED October 1, 1997 Cecil Crowson, Jr. Appellate C ourt Clerk CHEROKEE HI LLS UTI LI TY DI STRI CT ) POLK COUNTY ) 03A01- 9704- CV- 00128 Pl a i nt i f f - Appe l l e e ) ) ) v. ) HON. J OHN B. HAGLER, ) J UDGE ) J EFF STANLEY, I ndi vi dua l l y, ) a n d J e f f St a nl e y, d/ b/ a ) W hoo' s a ) ) REVERSED AND DI SM SSED I De f e nda nt - Appe l l a nt ) I N PART, a nd REMANDED H. FRANKLI N CHANCEY OF CLEVELAND FOR APPELLANT B. PRI NCE M LLER, J R. , OF CLEVELAND FOR APPELLEE I O P I N I O N Godda r d, P. J . J e f f St a nl e y, I ndi vi dua l l y, a nd d/ b/ a W hoo' s , a ppe a l s a a j u d g me nt of t he Ci r c ui t Cour t f or Pol k Count y whi c h ma nda t or i l y e n j o i n e d hi m t o r e move a c a bi n he wa s c ons t r uc t i ng a nd a c onc r e t e p a d f r o m a n e a s e me nt f or a wa t e r l i ne whi c h t he Tr i a l J udge f ou n d wa s o wn e d b y Che r oke e Hi l l s Ut i l i t y Di s t r i c t a nd wa s a n e n c u mb r a nc e on pr ope r t y c onve ye d t o M . St a nl e y. r The De f e nda nt a ppe a l s , r a i s i ng t he f ol l owi ng t wo i s s ue s : I. W THE TRI AL COURT CORRECT I N HOLDI NG THAT THE AS CHEROKEE HI LLS UTI LI TY DI STRI CT POSSESSES AN EASEMENT EXTENDI NG OVER THE DEFENDANT' S PROPERTY. II. I F THERE I S AN EASEMENT, M AY BUI LDI NG A STRUCTURE OVER THE EASEM ENT BE M ANDATORI LY ENJ OI NED W THOUT A I FI NDI NG THAT THERE I S NO ADEQUATE REM EDY OF LAW . By i ns t r ume nt da t e d De c e mbe r 21, 1966, Te nne s s e e Co r p o r a t i on, a pr i va t e c or por a t i on, c onve ye d t o Che r oke e Hi l l s Ut i l i t y Di s t r i c t , o r ga ni z e d pur s ua nt t o Ti t l e 57, Cha pt e r 82, T. C. A. , a 1 6- a c r e t r a c t l yi ng i n t he 3r d Ci vi l Di s t r i c t of Pol k Co u n t y . Thi s de e d a l s o c ont a i ne d t he f ol l owi ng l a ngua ge : t oge t he r wi t h a l l s t r uc t ur e s , p umps , wa t e r s t or a ge t a nks , pi pe s , va l ve s , ga t e s a nd ot he r me c ha ni c a l pa r t s a n d e qui pme nt pe r t i ne nt t o s a i d ma i ns a nd a l l r i ght s - o f - wa y a nd e a s e me nt s ne c e s s a r y or i nc i de nt a l t o t he o p e r a t i on, ma i nt e na nc e , r e pa i r or r e pl a c e me nt of s a i d wa t e r ma i ns a nd a ppur t e na nt e qui pme nt , a s s hown on a ma p de s i gna t e d a s N555, on f i l e i n t he Ge ne r a l Of f i c e o f t he Pa r t y o f t he Fi r s t Pa r t . By i ns t r ume nt da t e d M r c h 3, 1986, J e f f St a nl e y a a c qu i r e d a 2. 5- a c r e t r a c t l oc a t e d ne a r t he t r a c t a c qui r e d by Ch e r o k e e Hi l l s . Thi s de e d doe s not c ont a i n a ny r e s e r va t i on f o r r i g h t o f wa ys c l a i me d by Che r oke e Hi l l s . I t doe s , howe ve r , c o n t a i n t he f ol l owi ng r e f e r e nc e s : BEI NG AND I NTENDED TO BE THE SAM PROPERTY CONVEYED TO E Bi l l y D. Ba l i l e s , a nd wi f e , Vi c ky P. Ba l i l e s by W r r a nt y De e d f r om J . Gl e n Ha r bi s on, J r . a nd wi f e , a 2 Ka r e n M Ha r bi s on, r e c or de d J a nua r y 29, 1985, i n Book . 1 1 9, Pa ge 88 i n t he Re gi s t e r of De e ds Of f i c e , Pol k Co unt y, Te nne s s e e . BEI NG AND I NTENDED TO BE THE SAM PROPERTY CONVEYED TO E Ge ne Ne l s on, a nd wi f e , De ni s e Ne l s on by W r r a nt y De e d a f r om Vi c ky P. Ba l i l e s , a nd hus ba nd Bi l l y D. Ba l i l e s , r e c or de d on Fe br ua r y 6, 1985 i n Book 119, Pa ge 150, i n t h e Re gi s t e r of De e ds Of f i c e , Pol k Count y, Te nne s s e e . No a ddi t i ona l r e f e r e nc e s t o pr i or c onve ya nc e s a s t o t h e St a n l e y pr ope r t y a r e f ound i n hi s de e d, nor i n t he r e c or d. Our r e vi e w of t he r e c or d pe r s ua de s us t ha t t he p r i nc i pa l f a l l a c y o f t he Ut i l i t y Di s t r i c t , a s we l l a s t he Tr i a l J u d g e , i s a f i ndi ng t ha t t he e a s e me nt c onve ye d t o t he Ut i l i t y Di s t r i c t wa s a va l i d e nc umbr a nc e on M . St a nl e y' s pr ope r t y. r W f i nd s uc h a d e t e r mi na t i on i na ppr opr i a t e f or a t l e a s t e t wo r e a s ons . Fi r s t , t h e de e d whe r e i n t he Ut i l i t y Di s t r i c t a c q u i r e d t he wa t e r s ys t e m a nd r i ght of wa ys a t t e mpt s t o i n c o r p o r a t e by r e f e r e nc e a ma p f ound i n t he of f i c e of t he Te n n e s s e e Cor por a t i on, whi c h i s not a publ i c e nt i t y a nd whos e 1 r e c o r d s a r e not s ubj e c t t o i ns pe c t i on by t he ge ne r a l publ i c . Th u s , we c a nnot e qua t e a r e f e r e nc e t o t he ma p i n t he of f i c e of a p r i v a t e c or por a t i on t o a r e f e r e nc e t o a pl a t r e c or de d i n t he Re g i s t e r of De e ds Of f i c e , whi c h, of c our s e woul d s uppl y r e qui s i t e n o t i c e t o s ubs e que nt pur c ha s e s . 1 I t i s t r u e t h e p r o o f s h o ws t h e ma p c o u l d a l s o b e f o u n d i n t h e o f f i c e o f t h e Ut i l i t y Di s t r i c t . W p r e s u me t h i s o c c u r r e d wh e n t h e d e e d t o t h e e Ut i l i t y Di s t r i c t wa s d e l i v e r e d . Ho we v e r , t h e r e i s n o s h o wi n g t h a t t h i s f a c t wa s k n o wn t o t h e g r a n t e e o f t h e 2 . 5 a c r e - t r a c t o wn e d b y M . S t a n l e y a t t h e r t i me i t wa s a c q u i r e d f r o m Te n n e s s e e Co r p o r a t i o n o r b y M . S t a n l e y . r 3 Se c ondl y, t he r e i s no s howi ng t ha t t he de e d t o t he Ut i l i t y Di s t r i c t wa s e xe c u t e d, d e l i ve r e d a nd r e c or de d pr i or t o t h e de e d t o M . St a nl e y' s pr e de c e s s or i n t i t l e , whi c h we a s s ume r wa s a l s o f r om Te nne s s e e Cor por a t i on. W l e t hi s ma y ve r y we l l b e hi t he c a s e , we b e l i e ve t ha t t he Ut i l i t y Di s t r i c t ha d t he a f f i r ma t i ve dut y t o s how s uc h a nd ha s f a i l e d t o do s o. W a c c or di ngl y c onc l ude t ha t t he Cha nc e l l or wa s i n e e r r o r i n f i ndi ng t ha t t he r e c or d s uppor t s Che r oke e Hi l l s ' a s s e r t i on t ha t i t owns t he e a s e me nt i n di s put e . I n l i ght of our di s pos i t i on of t he f i r s t i s s ue r a i s e d b y t h e De f e nda nt , i t i s un ne c e s s a r y t ha t we a ddr e s s t he s e c ond . By c ount e r - c ompl a i nt M . St a nl e y ha s s ought da ma ge s r f r o m Ch e r oke e Hi l l s s houl d t he y be f or c e d t o r e move t he i r i mp r o v e me nt s , whi c h, a l t hough not s pe c i f i c a l l y a ddr e s s e d by t he Ch a n c e l l or ' s f i na l or de r , wa s i mpl i c i t l y di s mi s s e d t he r e by. Be c a us e n o i s s ue i s r a i s e d a s t o di s mi s s a l of t he c ou n t e r - c l a i m, we c hoos e not t o a ddr e s s t hi s f e a t ur e of t he c a s e . For t he f or e goi ng r e a s ons t he j udgme nt of t he Tr i a l Co u r t a s t o t he ma nda t or y i nj unc t i on i s r e ve r s e d a nd t he Ut i l i t y Di s t r i c t ' s o r i gi na l s ui t di s mi s s e d. The c a s e i s r e ma nde d f or 4 c ol l e c t i on o f c os t s b e l ow whi c h a r e , a s a r e c os t s of a ppe a l , a d j ud g e d a ga i ns t t he Ut i l i t y Di s t r i c t . _______________________________ Hous t on M Godda r d, P. J . . CONCUR: _ _ _ _ _ _ _ _________________________ Do n T. M M r a y, J . c ur _ _ _ _ _ _ _ _________________________ Ch a r l e s D. Sus a no, J r . , J . 5