CROSSVILLE — A chancery court hearing scheduled Thursday will determine if a temporary restraining order against the Laurel Hills Property Owners Association on Renegade Mountain will remain in place and prevent the POA from discontinuing water service to residents of the mountain as threatened in a letter earlier this year.

A temporary restraining order was issued June 29 after the Laurel Hills POA notified Renegade Mountain residents and the Tennessee Department of Environment and Conservation that, effective July 9, 2012, it would no longer provide water service to any party other than itself with its water system.
That action caused a hearing May 21 before the Tennessee Regulatory Authority (TRA) and the Laurel Hills POA failed to appear at the hearing.

At the July 12 hearing, the TRA will present its case against Laurel Hills POA as to why they should not discontinue water service to residents of Renegade Mountain.

The Laurel Hills POA only represents about eight units on the mountain, but also owns the water system and most of the land under an LLC known as Moy Toy.
The notice Laurel Hills sent to residents also stated the POA would withdraw its pending petition for a Certificate of Public Convenience and Necessity. The certificate is required to operate a public water system.
Renegade Mountain Home Owners Association President John Moore said he would prefer the Laurel Hills owners sell or sign off water responsibility to the local Crab Orchard Utility District. The Renegade Mountain HOA represents about 120 residents on the mountain.

The petition for the restraining order issued June 29 by Chancellor Ronald Thurman in the Chancery Court of the 13th Judicial District in Cumberland County states, "Laurel Hills Condominiums Property Owners Association (Laurel Hills) has failed to obey this court's order to have the Tennessee Regulatory Authority (TRA) make the determination as to whether or not the water system operated by Laurel Hills is subject to oversight by the TRA.

"Laurel Hills has jeopardized the provision of water service to residential customers in Renegade Mountain by notifying the TRA and Laurel Hill's customers that it will cease to provide water service on July 9, 2012. If Laurel Hills does terminate service to Renegade Mountain, cessation of the supply of water will cause immediate and irreparable harm to the residential consumers in Renegade Mountain. Loss of such a fundamental service, which is vital for basic living, endangers the public health and safety.

"Unless a restraining order is entered per Tenn. R. Civ. P. 65.03 to preserve the status quo, the public will suffer immediate and irreparable injury, loss, and damage. The Respondent's actions appear to be violations of Title 65 of Tennessee Code Annotated. The Petitioner is entitled to an order restraining the Respondent from any further business activities in contravention of these laws and transferring or dissipating any of the assets, bank accounts, books or records relating to the activities described in the complaint. Petitioner is further entitled to an order restraining all persons from terminating or interfering with the contracts of Respondent. Accordingly, a temporary restraining order is issued."

It was ordered that, "Laurel Hills Condominiums Property Owners Association, and others holding assets of the Respondent, their respective officers, directors, agents, financial institutions, servants, employees, attorneys, successors, accountants and assigns, and those persons in active concert or participation with them, are hereby restrained during the pendency of this order, from directly or indirectly: destroying, secreting, defacing, transferring, or otherwise altering or disposing of any books, records, accounts, or any other papers or recordings of any kind of the Respondent, including but not limited to removing them from the jurisdiction of

this Court..."

"In order to maintain the status quo and ensure the uninterrupted flow of

water to the customers of Laurel Hills Condominiums Property Owners

Association, that all persons, including Laurel Hills Condominiums Property

Owners Association, their principals, agents, employees, parents, and affiliates,

are restrained from taking any action to disrupt the supply of water from Laurel

Hills Condominiums Property Owners Association to customers in the

Renegade Mountain Community Club for the duration of this Restraining Order."

The state Attorney General's office questioned whether the actions of the POA are legal. The AG's office sent a notice to the Laurel Hills POA May 11 asking for explanations of its action by May 17.
According to the notice, written by Vance Broemel, senior counsel, "The Consumer Advocate is also alarmed by Laurel Hills' statement that it plans to terminate service to the public effective July 9, 2012. The Consumer Advocate would note that public utilities have a general duty to provide service within their territory."
Nashville attorney Donald Scholes represents the Laurel Hills POA in the case and has contended that Laurel Hills POA should not come under TRA and that the Laurel Hills POA gave residents a 60-day notice to find an alternative source for water.

The Renegade Mountain Community Club is being represented in chancery court by attorney Melanie Davis of Kizer and Black, Attorneys, LLC.

Thursday's hearing in chancery court is scheduled for 9 a.m. at the Putnam County Justice Center in Cookeville.