Judge Appointed Receiver for Charleston Restaurant
A court has ordered third-party financial oversight for Church and Union Charleston amid a multi-million dollar dispute.
Updated on Sept. 19, 2026 in Hospitality
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Judge Mark A. Davis has appointed an outside receiver to manage all financial operations at the Charleston restaurant Church and Union. The move follows allegations that operator Patrick Whalen misappropriated at least $5 million in corporate funds.
Why it matters
The court intervention aims to protect corporate assets that the judge determined were at risk of being lost or impaired. WP Church, which holds a 35 percent stake in the venue, claims funds were diverted for Whalen's personal benefit.
WP Church alleges that Patrick Whalen misappropriated at least $5 million in restaurant funds since 2020. WP Church maintains a 35 percent stake in the 5Church Charleston location.
The players
Mark A. Davis
He is the judge who issued the order to appoint a receiver to oversee the restaurant's financial activities.
Patrick Whalen
He is the operator facing accusations of misappropriating corporate funds and is currently appealing the court's decision.
WP Church
This entity holds a 35 percent stake in 5Church Charleston and is the primary plaintiff in the lawsuit against Patrick Whalen.
Church and Union Charleston
This restaurant is the Charleston-based establishment currently operating under a court-appointed financial receiver.
The details
The court previously issued a preliminary injunction to stop the movement of assets outside of standard business practices, but found evidence of transfers between restaurant entities in violation of that order. Despite the judicial oversight of the venue's finances, the restaurant is expected to remain open for business.
Timeline
5th Street Group was launched in 2012.
5Church Charleston opened in late 2015.
The dispute between WP Church and Patrick Whalen became public in June 2025.
Judge Mark A. Davis held a hearing regarding the restaurant on September 4, 2026.
The court officially appointed an outside receiver on September 19, 2026.
Market Landscape
The current receivership appointment marks an escalation in the legal conflict following the 2021 lawsuit involving WP Church and Patrick Whalen that previously resulted in a $1 damage award. This intervention highlights the increasing use of protective judicial measures within local hospitality management disputes.
Patrons of Church and Union Charleston should not see immediate changes to their dining experience as the restaurant is expected to continue normal operations. The legal battle centers on ownership stakes and internal financial management rather than daily service offerings.
The takeaway
Business partners in the hospitality sector often face complex financial disputes that require significant judicial intervention to protect remaining assets. Investors and operators should ensure that operating agreements clearly define the parameters for movement of funds between shared entities.
Further reading
For additional context on the local restaurant industry, visit Hospitality.
Source note: This article includes information reported by Post and Courier.
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