John 'Thunder' Thornton wins $15.4M judgment against Mike Ross
A
high-profile Chattanooga developer has won a
multi-million-dollar judgment against Rarity Communities
developer Mike Ross, but whether he collects it is another
question.
John “Thunder” Thornton, a significant University of Tennessee
donor, had sued Ross and a pair of business entities related to
Ross over Rarity Club, a waterfront project in Marion County,
Tenn. Thornton previously had won a judgment against the
businesses, but sought a personal judgment against the Maryville
developer, as well.
The lawsuit went to trial in Marion County in December, and a
consent judgment of more than $15.4 million — including costs
and attorney’s fees — was entered against Ross, who represented
himself during the trial. A claim for punitive damages in the
case was dismissed.
In an interview Tuesday, Ross said he couldn’t afford an
attorney, and said the jury deadlocked. “I’ve got several
judgments against me, and rather than fight it … I just agreed
to give him the judgment,” Ross said. “I didn’t want to agree to
any punitive damages, because I didn’t do anything wrong. I
didn’t commit any fraud.”
Thornton said he’d like to collect on the judgment, “but I may
never see a penny of it. Anybody wants to help me collect it,
I’ll give them half.”
“It was important to me not just to get a judgment from his
company, but get one from him personally,” Thornton said.
“Because he was personally responsible for that project’s
failure, and no one else.”
According to the Times Free Press, Thornton assembled the
578-acre parcel from TVA after swapping more than 1,000 acres of
other property in the area to the federal agency.
Thornton sold his interests in 2006 to Ross and Rarity
Investment Co. LLC, but kept a second mortgage on the property
that was to be paid off as lots were sold.
Thornton previously has alleged that Ross and his companies sold
more than $26.5 million worth of property but didn’t complete
the amenities and infrastructure at the project.
Ross previously has said it was his company’s intention that as
long as there was cash flow and lot sales there would be enough
funds to build the amenities, but he also has acknowledged that
during the initial phase of development, some money from Rarity
Club sales probably was reinvested in other projects.
Ross has been fighting courtroom battles for years, since his
sprawling portfolio of upscale residential communities collapsed
during the Great Recession of 2007-2009.
He was indicted in 2012 on federal charges of mail fraud, wire fraud
and money laundering, but those charges were later dismissed
|
BACK
1/19/15