Judge rules against Chattanooga Mercantile defendants in dispute with landlord

CHATTANOOGA, Tenn. (WDEF) — A year and a half after moving locations due to issues with their landlord, Chattanooga Mercantile’s lawsuit has officially ended. A judge has ordered named defendants Steve Watts and Luke Stewart to pay more than $250,000 in damages and attorney fees.

In June 2022, Chattanooga Mercantile announced its move from their Ringgold Road location to the Gateway Antiques mall on Cloud Springs Road.

Chattanooga Mercantile and former landlord, Chun H. Chen and Sphere LLC, have had lawsuit and countersuit claims ongoing since the summer of 2020, according to the court document.

A judge finally made a ruling on the case on December 13, 2023. The ruling then went into effect on December 23.

The General Sessions Court ruling states that the court sympathized with Chattanooga Mercantile, but ultimately sided with Chen, and that Chattanooga Mercantile failed to prove their counter complaint against Chen.

In addition, the court found Chen provided enough evidence to show Watts and Stewart breached their contract and were liable for paying a total of $251,091.

That total comes from:

• Unpaid and back rent of $166,417
• Damages due to “remediating the irregularly painted floor” totaling $9,270
• Attorney fees of $56,109 and $19,295

Previously, Chattanooga Mercantile stated their issues with the condition of the building they were renting from Chen. Company owners claimed Chen assaulted them and verbally abused them as well.

Online police records reveal that Chen was arrested in March of 2022 for simple assault and disorderly conduct. However, those charges were dismissed.