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John "Thunder" Thornton filed suit Friday in Marion County Chancery Court seeking $9.8 million plus interest and penalties from Maryville developer Mike Ross for failure to develop Rarity Club, a 578-acre tract on Nickajack Lake.

"It's very frustrating. I don't like to settle a score this way. I've been trying to work it out," said Thornton, Chattanooga businessman and Blount County native.

The suit accuses Ross of "breach of fiduciary duty, misappropriation, mismanagement, fraud, misrepresentation, conspiracy and negligence" regarding the lack of development of the property.

Thornton acquired the Nickajack property — on the Tennessee River about 30 miles west of Chattanooga — in 2006 from the Tennessee Valley Authority, swapping the site for about 1,100 nearby acres. The plan was to build 1,000 luxury houses, boat slips and a 18-hole, championship golf course on the property.

According to the lawsuit, Thornton sold his ownership in the property to Rarity Investment, owned by Ross, which sold Rarity Club lots "for a gross revenue in excess of $26.5 million and collected substantial funds for golf memberships and dues, but has not completed amenities and infrastructure."

The lawsuit states that in February 2009 Rarity Investments and Nickajack Shores stopped making payment on the note held by Thornton. Other lawsuits filed by Rarity Club property owners are pending.

In September, most of the unpurchased Rarity Club lots were taken over by GreenBank following a default by Ross of more than $15 million in bank loans.

TVA is not involved in the lawsuits over Rarity Club, but the developers still have obligations to the agency regarding the property.

John Moulton, TVA spokesman, gave an example: A special warranty deed dated June 27, 2006, specifies that Nickajack Shores Holding and Rarity Investments will invest $4 million within five years from the deed date for commercial recreation amenities on the property.

Boat docks and a campground would be part of those improvements.

"If the investment is not made within five years, TVA has the right to take possession of the property," Moulton said, referring to property specified in the warranty deed.