Supreme Court ruling preserves Kinston-based Cherry Energy
The North Carolina Supreme Court has ruled to keep one of Kinston’s oldest family-owned businesses open, deciding that Cherry Energy will not be forced to dissolve following a years-long dispute among family shareholders.
In a unanimous 6-0 decision, justices found that a 1998 shareholder buyout agreement provides a fair and legal path for dissenting shareholders to exit the company without shutting it down. The ruling effectively ends a four-year legal battle over control of the company, formerly known as Cherry Oil.
The case began when Armistead Mauck, a former banker who joined the family business in the 1990s, and his wife, Louise Mauck — sister to company president Jay Cherry — sought a court order to dissolve Cherry Oil. The couple objected to Jay Cherry’s decision to bring his son, Jason Cherry, into leadership as part of a succession plan.
Justice Anita Earls wrote in the court’s opinion that the 1998 shareholder agreement gives the Maucks a reasonable way to leave the company and recover their investment, according to reporting by The News & Observer.
“The shareholder agreement gives them a way out — on demand, at fair value,” Earls wrote. “It lets them exit the business, recover their investment and leave a corporate relationship they no longer wish to keep.”
Earls emphasized that the decision was narrow and based on the specific facts of the Cherry Energy case, noting that buyout provisions do not automatically prevent future dissolution claims in other disputes.
Founded in 1928, Cherry Energy remains a major local employer and fuel supplier in Kinston and eastern North Carolina. The court’s decision ensures the company will continue operating while resolving ownership issues internally.
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