It turns out there are problems that can’t be solved by beer.
A legal dispute has erupted in New Mexico’s craft beer industry as Santa Fe Brewing Co. has filed a lawsuit against a former SFBC vice president and current co-owner of Marble Brewery, alleging breach of contract and fraud.
The lawsuit, filed in 1st Judicial District Court on Friday, May 9, claims Jarrett Babincsak used his severance package from SFBC to acquire a stake in Marble Brewery, a direct competitor. It further alleges that he performed consulting work for SFBC while actively working for Marble and attempted to poach SFBC employees. SFBC is seeking punitive damages, claiming Babincsak used insider knowledge to harm the company.
According to the suit, Babincsak requested to buy a stake in SFBC in 2024 but was denied. He then resigned and negotiated a severance package that included an upfront payment and ongoing consulting services. SFBC states that had it known Babincsak planned to join Marble, it would not have agreed to the severance terms. The lawsuit alleges that while under contract for consulting, Babincsak tried to recruit SFBC employees for Marble.
Babincsak, who served eight years at SFBC, denied the allegations, calling them “untrue” and a “hurtful distraction.”
“In early December, SFBC owner Brian Lock proposed the idea of voluntary severance. I offered to accept a voluntary severance to leave SFBC and proposed terms and a formal agreement, which included accepting payment in lieu of compensation already owed to me by SFBC,” Babincsak told City Desk ABQ. “Mr. Lock accepted the terms and we signed the agreement. I did not resign. I fulfilled all obligations of my severance agreement, which amounted to wrapping things up during my final two weeks of employment and being available to SFBC staff after to answer questions.”
Lock told City Desk ABQ that SFBC has no comment on the lawsuit.
“I was under no obligation to disclose any details about my professional future to Mr. Lock or SFBC,” Babincsak said. “Mr. Lock did not express interest in where I was headed, and it was only after my departure and learning that I was working with others to potentially acquire Marble Brewery, that he raised concerns.
Marble Brewery, one of Albuquerque’s original breweries, underwent new ownership in January, with Babincsak and Bert Boyce leading the group. The announcement of the new owners came after months of rumors about the potential fate of Marble, particularly on social media, about its possible closure, bankruptcy and the future of dozens of Marble employees. City Desk ABQ was the first to report on what might lie ahead for the 16-year-old business.
“My hope here is that we can all get back to making and enjoying great local beer. This is, after all, supposed to be fun and there’s room for everyone to be successful. My focus will continue to be on our team at Marble and helping lead this organization into a very bright future,” Babincsak said. “The complaint made against me by Santa Fe Brewing Company is not only untrue but a hurtful distraction for me, my family, our team at Marble and all of our business partners. I gave eight years of my life to working at SFBC, and I remain proud of my contributions to its success and care greatly for many of the people there.”