Judges Recused From Mountain City Club Lawsuit
Three Chattanooga Circuit Court judges have stepped down from a $2 million civil lawsuit involving the private club.
Updated on Oct. 9, 2026 in Financial Crime
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Three Circuit Court judges have recused themselves from a lawsuit concerning a $2 million loan and the misuse of Mountain City Club funds. Only one judge remains to preside over the case as it moves toward trial.
Why it matters
The litigation centers on allegations that club money was diverted to an LLC to purchase a yacht. The case follows the ouster of the club's previous board of directors by its members.
Judge Jennifer Peck remains as the sole judge on the Circuit Court docket for this matter. The case follows unsuccessful mediation and is currently heading to trial after SmartBank officials were issued subpoenas.
The players
Richard Johnson
He is the former board president of the Mountain City Club named in the civil lawsuit.
Chris Allen
He is the former board treasurer of the Mountain City Club and allegedly controlled the LLC that received club funds.
Jennifer Peck
She is the sole remaining Circuit Court judge presiding over the ongoing lawsuit.
SmartBank
This financial institution was served with subpoenas in connection to the ongoing investigation.
The details
The lawsuit alleges that club funds were transferred to an LLC controlled by former treasurer Chris Allen to acquire a yacht. The vessel reportedly suffered water damage while being transported from Florida to Ross Landing in Chattanooga.
Timeline
October 9, 2026: Article published regarding judicial recusals
Legal Context
The mass recusal of three judges follows the procedural requirements outlined in the Tennessee Code of Judicial Conduct. This shift highlights how local courts manage impartiality in high-profile civil disputes involving prominent private institutions.
The ongoing litigation keeps the details of club oversight and financial management under public scrutiny. Residents and local business owners may see continued reporting as the case proceeds to trial.
The takeaway
Private clubs often face significant legal challenges when internal governance structures are bypassed or disputed by membership. Members should remain diligent regarding the oversight of institutional financial assets and board activities.
Further reading
For additional updates on local litigation, visit the Financial Crime section.
Source note: This article includes information reported by Chattanoogan.
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