City of Kinston wins $90,000 judgment in contract dispute with Social Beverage Company
The City of Kinston has won a $90,000 judgment in its two-year legal battle with The Social Beverage Company, operator of Social House Vodka, after a Lenoir County jury found the company failed to meet its lease obligations on city-owned property.
The lawsuit, filed in September 2023, claimed Social Beverage Company, its related entities, and managing partner Cary R. Joshi owed rent and other contractual payments under a lease agreement with the city.
After months of pretrial motions, Judge Robert C. Roupe ruled in February 2025 that a valid contract existed and granted partial summary judgment in the city’s favor. That ruling cut off the defendants’ unjust enrichment argument, because the court determined the relationship was covered by contract.
The company attempted to push back with counterclaims accusing the city of trespass, conversion and unjust enrichment, but those were dismissed in March.
When the case went to trial in June, the jury heard evidence about unpaid rent and the fair rental value of the property. On July 2, jurors awarded the city $98,000 in damages. The defendants were credited $8,000 in recoupment, leaving a net judgment of $90,000. Roupe entered final judgment on July 31. As of August, court records show no payments have been made toward the award.
City attorneys have also signaled they may seek attorney’s fees under the terms of the lease.
Joshi’s response
In a statement to Neuse News, Joshi said he respected the legal process but believed not all facts were fully weighed in the jury’s decision.
“The lawsuit is complex,” Joshi said. “We believe some important facts and assurances weren’t fully considered in the current outcome, and that’s discouraging. Still, we respect the legal process, and I trust that when the full story is heard, clarity and fairness will prevail.”
Joshi emphasized the company’s commitment to Kinston, saying it chose the city in 2016 because of its people and potential. Since relocating to Kinston five years ago, Joshi said the company has created jobs, invested in the community and supported local causes.
He said the business faced setbacks during COVID-19 but has grown into one of the region’s top emerging spirit companies.
“Litigation like this only distracts from the shared mission of building community,” Joshi said. “Our focus will remain on serving our customers, supporting our employees, and contributing to Kinston’s long-term growth and success.”
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