The city of Soddy Daisy has been sued over its liquor store application process.
Elaine Hollenback said in the Chancery Court complaint that she applied last December to open a liquor store.
Soddy Daisy residents voted last November to allow liquor stores within the city limits.
Ms. Hollenback said she was told that her application could not be accepted because someone had applied for a liquor store that was within two miles of her site.
She was told it was "on a first-come, first-served basis."
The suit by attorney Arvin Reingold said the city should not have issued a certificate of compliance "for a non-existent store."
Marcus and Lisa Wolff opened Soddy Daisy's first liquor store in early February.
Cork & Flask is on Sequoyah Road.