SMITH COUNTY PLANNING COMMISSION v. CARVER TRUCKING, INC. (Tenn. Ct. App. July 12, 2012)
This appeal involves a contempt finding against a closely-held corporation. The defendant closely-held corporation owned real property located on a highway.
The trial court held that the corporation had violated zoning ordinances by maintaining and operating a trucking terminal and salvage yard in an unauthorized area. The trial court enjoined the corporation from maintaining a trucking terminal at this location and directed the corporation to remove junk from the property. The corporation then leased the property to a business associate who continued to operate a trucking terminal on the property and failed to remove the junk. A contempt petition was filed against the defendant corporation.
The trial court determined that the defendant corporation had violated the injunction and was in contempt of court. The defendant corporation now appeals, arguing that the corporation cannot be held in contempt for the actions of the tenant on the property. We affirm.
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