NASHVILLE, Tenn.—A Tennessee appeals court yesterday struck down a Nashville restriction on how many customers certain types of home businesses can serve. Record producer Lij Shaw and hairstylist Pat Raynor, represented by the Institute for Justice (IJ) and the Beacon Center of Tennessee, sued the city in 2017 after it shut down their businesses without any evidence the small home businesses were harming the surrounding neighborhood.
After they sued, and because of the COVID-19 pandemic, Nashville permitted Lij and Pat to have six client visits a day at their home-based businesses, subject to some invasive and burdensome requirements. But the city allows other home-based businesses, including short-term rentals, home daycares, historic homes, and others, to have 12 or more clients daily, free from the additional requirements. To eliminate the unfair treatment, Lij and Pat continued their suit.
“Lij and Pat have a constitutional right to use their homes to earn an honest living,” IJ Senior Attorney Paul Avelar said. “But Nashville treats their home-based businesses worse than other, privileged, home-based businesses for no real reason. This kind of arbitrary favoritism has no place under the Tennessee Constitution.”
The unanimous panel of Judges Frank Clement, Andy Bennett, and Jeffrey Usman agreed with Pat and Lij that the city had not offered good reasons for favoring some home business over others. Judge Clement writing for majority stated: “Metro has offered no rational reason for the difference in treatment that is relevant to the purpose of the law.”
“This is amazing news after many years of fighting to be treated like any other home-based business,” said Lij. “It never made sense why my home recording studio could not have as many customers as a home daycare or short-term rental. This is a victory for Music City and for small businesses across the state. City restrictions must make sense for everyone.”
Pat and Lij’s lawsuit previously worked its way to the Tennessee Supreme Court. In 2022, the state’s highest court overturned a lower courts’ dismissal of the case against unequal treatment. Nashville could once again appeal to the state supreme court. Pat and Lij are prepared to continue the fight, if necessary.