Quick take: A judge has named an outside receiver to oversee Church and Union Charleston’s finances after investor WP Church LLC accused managing partner Patrick Whalen of diverting at least $5 million since 2020. Whalen says the transfers were loans authorized under the operating agreement and has appealed the injunction. He also filed a separate suit in South Carolina accusing WP Church of breaching the agreement and plotting competition. The restaurant will remain open while the receiver monitors cash flow.
Judge Appoints Receiver in $5M Financial Dispute at Church and Union Charleston
Church and Union Charleston opened in late 2015 in a former house of worship near North Market and East Bay streets, one of the city's busiest tourist crossroads. File/Gavin McIntyre/Staff
A judge has appointed an independent financial receiver to oversee the accounts of Church and Union Charleston after a bitter dispute between the restaurant’s managing partner and an investor escalated into court action.
The dispute centers on allegations by investor WP Church LLC that managing partner Patrick Whalen diverted at least $5 million from 5Church Charleston LLC since 2020 to other food-and-beverage businesses he owns or controls. Whalen says those transfers were routine loans made in good faith and that the company’s operating agreement gave him broad discretion over such transactions.
Legal proceedings and injunction — WP Church, which has ties to Charlotte real estate developer White Point Partners, filed suit in Mecklenburg County, North Carolina, in June 2025. After a Sept. 4 hearing, Judge Mark A. Davis temporarily barred Whalen from transferring, selling or disposing of any 5Church Charleston assets outside the ordinary course of business and appointed an outside receiver to monitor all cash flow into and out of Church and Union Charleston.
Judge Davis concluded corporate funds and other assets "are in danger of being lost or materially impaired."
The court later found Whalen likely violated the preliminary injunction, citing a series of transactions among related restaurant entities that began last November. Whalen has described some transfers as "accidental" or "corrective."
Church and Union Charleston opened as 5Church Charleston at 32-B North Market St. in late 2015. File/Staff
Allegations and defenses — WP Church has raised questions about credit-card charges, luxury vehicle leases, accelerated loan payments to members of Whalen’s family and sudden increases to salaries and management fees last year. The investor group says those moves may have been attempts to divert funds after the lawsuit was filed. Whalen disputes those allegations and has appealed the injunction.
Counterclaims and parallel filings — This week Whalen filed a separate summons in South Carolina state court on behalf of 5Church Charleston, alleging WP Church breached the operating agreement by making "salacious" and disparaging statements in the North Carolina suit and secretly plotting a competing restaurant on Upper Meeting Street. In that filing, Whalen asserts WP Church had effectively abandoned its roughly 35% stake in the business years earlier and seeks unspecified damages plus relief that could force WP Church to sell its interest to the other owners.
Business continuity and background — The restaurant opened as 5Church Charleston at 32-B North Market St. in late 2015 after the brand first launched in Charlotte. It operates under the 5th Street Group umbrella, which Whalen founded in 2012 with Alejandro Torio and chef Jamie Lynch. The judge’s order does not remove Whalen from his managerial titles, and the restaurant is expected to remain open while the receiver oversees finances.
History of disputes — An earlier two-year legal dispute between Whalen and investor Ayman Kamal prompted the company to rebrand several locations as Church and Union in 2021. That litigation ended with a nominal damages award to Kamal and a separate payment ordered for unauthorized access to corporate email accounts; it also led the holding company to cut formal ties with a Midtown Atlanta location that still operates under the 5Church name.
Both sides continue to press claims in multiple jurisdictions as the receiver reviews the restaurant’s financial records and monitors ongoing cash flow.
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