Brewery Cries Foul and Files Business Litigation Against Town

One of the most popular cottage industries over the past several years around the nation has been the growth of micro-breweries. However, it is always risky when starting up a new business, and one of the worst fears may be that the venture will somehow find itself caught up in a business litigation. Georgia business owners might benefit from learning more about one company’s recent woes.

Skyscraper Brewing Company was a growing business located in a western state. The owners had developed an award winning beverage and also stocked and sold brews from other brands. In 2011, the company entered into a deal with a nearby town to relocate its plant there. According to one of the brewery’s co-owners, the town officials promised to help them with the relocation by funding the business’s purchase of property owned by the city and intended for its new headquarters.

The lawsuit alleges that not only did the city fail to follow-through on its business promises, but an official in the town’s employ unlawfully entered the business and removed property, bookkeeping records and recipes after the deal fell through. In its response to the suit, city officials claim that the business failed of its own accord and that the town was not a part of the deal since it effectively lost its ability to aid businesses due to lawmakers actions in 2011. Both parties are to appear in court early in the new year in response to the city’s request for the case to be dropped.

In addition to the main complaint, the brewery company alleges that the town backed out of its commitment after the owners refused to pay the extraordinarily high fees for trash collection by a company owned by a former city official. The company has since gone out of business, and more than two dozen employees lost jobs. Georgia businesses that find themselves at an impasse over any issue or embroiled in any type of business litigation might benefit from consulting an attorney who specializes in commercial law.

Source: Los Angeles Times, “Battle over defunct brewery’s failed relocation deal with City of Industry comes to a head“, Kim Christensen, Dec. 28, 2016

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