The City of Kinston, North Carolina, won a $90,000 judgment against The Social Beverage Company and its managing partner, Cary R. Joshi, in the lawsuit it filed over unpaid rent on the city-owned building that houses the Social House Vodka distillery. A Lenoir County jury returned a $98,000 damages verdict on July 2, 2025, offset by an $8,000 recoupment credit to the defendants, and Judge Robert C. Roupe entered the final $90,000 judgment on July 31, 2025.1Neuse News. City of Kinston Wins $90,000 Judgment in Contract Dispute With Social Beverage Company
How a $500 Property Sale Led to a Rent Dispute
In June 2016, Kinston entered an option-to-purchase agreement with Isaac Hunter Distillery, LLC, an entity tied to the Social House Vodka venture, allowing it to buy the city’s old power plant at 906 West Atlantic Avenue for $500. City manager Tony Sears said at the time that the city expected its return to come from revitalization of the surrounding area rather than the sale price itself.2WCTI12. City of Kinston To Sell Old Power Plant Building
Social Beverage Company pledged a $5.8 million investment and 34 new jobs, and the distillery, operated as Three Stacks Distilling Company, LLC, opened on July 10, 2017.3N.C. Department of Commerce. Social Beverage Company To Create 34 Jobs in Kinston4Kinston Free Press. Kinston-Based Vodka Distillery Opens Monday The specifics of how the original $500 purchase option evolved into a lease with ongoing rent obligations were not detailed in available reporting, but by the time the city sued, the arrangement was governed by a lease agreement, and rent was going unpaid.1Neuse News. City of Kinston Wins $90,000 Judgment in Contract Dispute With Social Beverage Company
What the City Claimed and What the Company Argued
Kinston filed suit in September 2023 against The Social Beverage Company, related entities, and Cary R. Joshi as managing partner. The city alleged the company had failed to pay rent and other contractual obligations owed on the city-owned property, and it sought damages tied to unpaid rent and the fair rental value of the building.1Neuse News. City of Kinston Wins $90,000 Judgment in Contract Dispute With Social Beverage Company
The defendants pushed back on two fronts. They argued no valid contract existed to support the city’s claims, and they filed counterclaims for trespass, conversion, and unjust enrichment against the city.1Neuse News. City of Kinston Wins $90,000 Judgment in Contract Dispute With Social Beverage Company
How the Court Ruled
The defense lost the contract question before trial. In February 2025, Judge Roupe found that a valid contract existed between the parties and granted partial summary judgment for the city, dismissing the defendants’ unjust enrichment argument. The following month, the court dismissed the remaining counterclaims for trespass, conversion, and unjust enrichment, leaving only the city’s claims for the jury.1Neuse News. City of Kinston Wins $90,000 Judgment in Contract Dispute With Social Beverage Company
Trial took place in June 2025. On July 2, the Lenoir County jury awarded the city $98,000 in damages. The defendants received an $8,000 credit in recoupment, and Judge Roupe entered the final $90,000 judgment on July 31, 2025.1Neuse News. City of Kinston Wins $90,000 Judgment in Contract Dispute With Social Beverage Company
Where Things Stand Now
As of August 2025, court records indicated no payments had been made toward the $90,000 award. City attorneys signaled they may also seek attorney’s fees, as permitted under the terms of the lease, which would increase the total amount owed.1Neuse News. City of Kinston Wins $90,000 Judgment in Contract Dispute With Social Beverage Company
The distillery itself appears to remain open. Social House Vodka’s website lists active business hours for the distillery, its PumpHouse bar, and scheduled tours, with Cary Joshi still identified as founder and president.5Social House Vodka. Contact Us Whether the company will satisfy the judgment, face collection proceedings, or appeal the verdict has not been publicly reported.1Neuse News. City of Kinston Wins $90,000 Judgment in Contract Dispute With Social Beverage Company