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Bill BL2018-1125

An ordinance authorizing the Metropolitan Department of Law to compromise and settle its claims against Teleport Communications America, LLC (formerly TCG Midsouth, Inc.) for unpaid right-of-way franchise fees and all expenses related to the litigation of such claims; and authorizing the establishment of a franchise arrangement with Teleport.

WHEREAS, the Metropolitan Government (“Metro”) brought a lawsuit against Teleport Communications America, LLC, (“Teleport”), formerly TCG Midsouth, Inc. (“TCG”) in 2002, which is currently pending in Davidson County Chancery Court as consolidated Case No. 02-749-III (“the Lawsuit”); and,

WHEREAS, the Lawsuit relates to disputes between Metro and Teleport concerning the telecommunications franchise issued by Metro to Teleport’s predecessor in interest, TCG, by Ordinance No. O97-913 on or about September 29, 1997, and subsequently assigned to Teleport, and consists of a “Telecommunications Franchise Contract by and between the Metropolitan Government of Nashville and Davidson County and TCG Midsouth, Inc.” incorporating Substitute Ordinance No. 094-1103, including Amendment 1 thereto, as codified at Metropolitan Code §§ 06.26.010 et seq., (the “Franchise”); and,

WHEREAS, the Franchise expired on its own terms on September 29, 2012; and,

WHEREAS, in the Lawsuit, Metro brought claims, inter alia, seeking to enforce certain terms of the Franchise or otherwise collect compensation from Teleport for use of the public rights-of-way, and Teleport brought counterclaims and/or defenses asserting, inter alia, that the monetary and in-kind compensation provisions of the Franchise are unenforceable; and,

WHEREAS, Metro and Teleport wish to resolve the Lawsuit (including all claims, counterclaims and defenses raised, and expenses incurred) by signing the attached Settlement Agreement (Exhibit A) which includes certain payment terms for funds to be paid by Teleport to Metro and which also includes the establishment of a new franchise arrangement with Teleport going forward.


Section 1: The Metropolitan Department of Law is authorized to compromise and settle Metro’s claims against Teleport for unpaid right-of-way franchise fees, and for all expenses incurred in the litigation concerning those claims, pursuant to the terms and conditions as contained in the attached Settlement Agreement (Exhibit A). The Settlement Agreement is hereby approved and the Director of Law is hereby given the authority to execute the Settlement Agreement.

Section 2: The franchise arrangement with Teleport, going forward, as described in paragraphs 6-10 of the Settlement Agreement (Exhibit A), is hereby established.

Section 3: The proceeds of the Settlement Agreement shall be deposited into the Undesignated Fund Balance of General Fund of the General Services District.

Section 4: Be it further enacted, that this ordinance shall take effect immediately after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.


Tanaka Vercher

Related Documents

Legislative History

IntroducedMarch 20, 2018

Passed First ReadingMarch 20, 2018

Referred toBudget and Finance Committee

Passed Second ReadingApril 3, 2018

Passed Third ReadingApril 17, 2018

ApprovedApril 18, 2018

ByMayor Briley's signature

Requests for ADA accommodation should be directed to the Metropolitan Clerk at 615-862-6770.

Last Modified: 05/03/2018 1:49 PM