Memphis Publishing Company v. Cherokee was a court case in which the Supreme Court of Tennessee ruled that private entities could be subject to the state public records law if they performed the "functional equivalent" of a government agency. [1]
[edit] Background
The ruling, handed down in September 2002, stemmed from a lawsuit brought by the parent company of the Memphis Commercial Appeal newspaper against a nonprofit corporation that held a state contract to arrange child care services for low-income parents, Cherokee Children and Family Services Inc. Amid questions about the charity's financial management, The Commercial Appeal asked Cherokee to make public various financial records, and Cherokee refused. The charity also turned down requests for the same records made by auditors from the office of state Comptroller John Morgan. [2]
The newspaper then sued Cherokee, arguing that it provided a service in place of the state Department of Human Services, and thus, was the equivalent of a government agency and was subject to the state public records law.[3]
[edit] Supporters of the FOIA request
[edit] Criticisms of the FOIA request
[edit] Ruling of the court
The state's highest court sided with the newspaper. Writing for the five members of the court, Justice A.A. Birch said, "the public’s fundamental right to scrutinize the performance of public services and the expenditure of public funds should not be subverted by government or by private entity merely because public duties have been delegated to an independent contractor. When a private entity’s relationship with the government is so extensive that the entity serves as the functional equivalent of a governmental agency, the accountability created by public oversight should be preserved."[4]
In the same ruling, the high court also said that, as the records in Cherokee's possession were public, the state comptroller had similar rights of access to the charity's financial records.[5]
[edit] Outcome of the controversy
The comptroller's office later issued an investigative audit into Cherokee's operations, reporting that hundreds of thousands of dollars in government funds had been siphoned out of the charity by its executive director, WillieAnn Madison.[6]
Madison was convicted in 2004 of federal charges of tax evasion, money laundering and embezzlement, and was accused of stealing more than $700,000 from the agency. Her husband, John Madison, was convicted of tax evasion and making false statements. WillieAnn Madison's convictions were upheld in 2007.[7]
The "functional equivalent" standard set by the state Supreme Court in the Cherokee case remains in place today. It has served as the basis for which courts have held that other private entities are subject to the public records law, including The Tennessean v. Powers Management/Allen v. Day.
[edit] Associated cases
[edit] See Also
[edit] External links
[edit] References
- ↑ Tennessee Supreme Court ruling: Memphis Publishing Co. v. Cherokee, Sept. 5, 2002
- ↑ Tennessee Supreme Court ruling: Memphis Publishing Co. v. Cherokee, Sept. 5, 2002
- ↑ Tennessee Supreme Court ruling: Memphis Publishing Co. v. Cherokee, Sept. 5, 2002
- ↑ Tennessee Supreme Court ruling: Memphis Publishing Co. v. Cherokee, Sept. 5, 2002
- ↑ Tennessee Supreme Court ruling: Memphis Publishing Co. v. Cherokee, Sept. 5, 2002
- ↑ [http://www.comptroller1.state.tn.us/repository/MA/cherokee.pdf INVESTIGATIVE AUDIT OF SELECTED RECORDS
OF CHEROKEE CHILDREN AND FAMILY SERVICES, INC.
FOR THE PERIOD OCTOBER 1, 1998, THROUGH DECEMBER 31, 1999]
- ↑ Memphis Commercial Appeal, Court advises longer sentence for Madison, May 4, 2007
