Court grants Mountain State’s request to stop the sale of land to buyer who wanted to build methadone clinic

WASHINGTON COUNTY, TN (WJHL) – Crossroads Treatment Centers just hit another snag in trying to bring a methadone clinic to Johnson City.

Tuesday, Mountain States Health Alliance filed a lawsuit against Crossroads and Calhoun Real Estate.

Last month, Mountain States said if it had known a methadone clinic planned on opening on the land that it owns, it never would have entered into an agreement to sell that land.

Tuesday, the chancery court in Washington County, TN granted Mountain State’s Health Alliance’s request to stop and agreement to sale of land to Crossroads.

According to a Temporary Restraining order that was issued on the same day the lawsuit was filed, the court granted MSHA’s request based on a purchase agreement that prohibits the “property from being owned, operated, or used in direct competition with MSHA’s clinical services.

The purchase agreement allows for a 180-day due diligence period where Calhoun could terminate the agreement “for any or no reason.”

The lawsuit also claims the real estate company and Crossroads are managed by the same person. It also says Crossroads would be a direct competitor of Mountain States – a violation of the use restrictions.

Mountains States also says Crossroads concealed its intentions because it knew Mountain States opposed a similar application for a methadone clinic 3 years ago.

MSHA says it learned of the plans from a WJHL report, not the buyer.

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