by 
By Mark A Leon
Charleston’s restaurant industry is one of the city’s most recognizable economic engines — but behind the polished dining rooms, award-winning chefs and increasingly large restaurant groups, a number of businesses are also dealing with lawsuits, financial disputes, ownership battles and contract litigation.
A review of current Charleston County court records, federal court filings and recent court reporting identified several significant cases involving Charleston restaurants and restaurant groups.
The cases vary considerably. Some involve relatively ordinary contract disputes. Others reach into questions of ownership, millions of dollars in alleged financial transfers, unpaid loans and the financial collapse of a multi-state restaurant group.
Importantly, a lawsuit is an allegation, not a finding of wrongdoing, and several of the cases remain unresolved.
Church & Union: A restaurant caught in an ownership and financial dispute
Perhaps the most consequential current dispute involving a Charleston restaurant is the legal battle surrounding Church & Union Charleston and the 5th Street Group.
The downtown restaurant was established through 5Church Charleston LLC, involving Patrick Whalen and outside investors. Court records describe Whalen as the company’s manager and say he owns a 40% interest, while WP Church holds a 35% interest. Whalen also leads Fifth Street Group, which operates other restaurants under the Church & Union umbrella and related concepts. (North Carolina Courts)
The dispute has centered on allegations by minority investors concerning the handling of money involving the Charleston restaurant and affiliated businesses.
The investors have alleged that millions of dollars were transferred to affiliated concepts without proper authorization and have raised breach-of-fiduciary-duty claims. Those allegations have been contested.
The litigation has now moved beyond a simple ownership disagreement.
In September 2026, a court ordered limited receivership involving Church & Union Charleston, with BDO Consulting Group overseeing restaurant expenditures and debt payments. The development represents an unusual level of court involvement in the operation of a functioning Charleston restaurant. (Bizjournals)
The broader litigation has also produced extensive court findings concerning the ownership structure and relationship between the Charleston restaurant and Fifth Street’s other restaurants. (Midpage)
Why this matters
This isn’t simply a disagreement between business partners.
It raises a larger question for Charleston’s increasingly consolidated restaurant industry:
What happens when a local restaurant’s finances become intertwined with a larger restaurant group and affiliated concepts in other cities?
That question is particularly relevant as Charleston continues to attract multi-concept hospitality companies.
Rodney Scott’s BBQ and the Pihakis collapse
Another major Charleston restaurant legal story involves Rodney Scott’s BBQ and the financially troubled Pihakis Restaurant Group.
A lender, Itria Ventures LLC, sued Rodney Scott’s BBQ Charleston LLC and several Pihakis-related companies in Charleston County in April 2026.
The lawsuit alleged that the defendants defaulted on a $350,000 loan. The loan documents called for payments of nearly $11,800 twice a month for 18 months and carried a 25.99% annual interest rate. (WCIV)
The defendants included:
- Rodney Scott’s BBQ Charleston LLC
- RSBBQ Partners LLC
- Nick Pihakis
- Pihakis Restaurant Group LLC
- Pihakis Investment Group III LLC
- JER Spirits Investments LLC
A Charleston County judge subsequently entered a default judgment totaling approximately $391,425.39, including interest, costs and attorney fees. (https://www.wbrc.com)
The lawsuit arrived just days before Rodney Scott’s Charleston restaurant abruptly closed in May.
The closure was part of a much larger financial crisis involving Pihakis Restaurant Group, which had restaurants and concepts in several states. (WCIV)
The financial fallout has continued.
Nick Pihakis filed personal Chapter 7 bankruptcy in August 2026, listing more than $44 million in liabilities against approximately $10.6 million in assets, according to reporting based on the bankruptcy filing. (https://www.wbrc.com)
The Itria judgment has also begun traveling beyond South Carolina. In September, the lender filed in Alabama seeking recognition of the South Carolina judgment so it could pursue assets there. (https://www.wbrc.com)
The Charleston connection
This case illustrates how quickly financial problems at a regional restaurant group can become a Charleston story.
Rodney Scott’s was not simply another restaurant. It was a nationally recognized Charleston barbecue destination.
And while the lawsuit names multiple Pihakis-related entities, the legal claims should not be interpreted as allegations against pitmaster Rodney Scott personally beyond the parties specifically named in the litigation.
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