No. 6: Bella Vino Lawsuit

What all began as a simple eviction case between a downtown restaurant and the City of Morganton turned into a two-week strenuous civil jury trial resulting in over $1 million in due compensation to the restaurant and a lawsuit against five senior Morganton leaders.

Emmanuel Manolakas, owner of Bella Vino, came out on top after a jury’s May 17 verdict ruled that the City breached the 2018 lease with the owner, and he was entitled to $705,000 in compensation plus 8% interest compounded daily.

Throughout the trial, a jury heard testimonies from involved city officials, Manolakas, restaurant employees, and the opening/closing statements from their attorneys. What came from those testimonies revealed deeply rooted disputes, claims of defamation, violations of open meeting laws, and the breached contract.

Manolakas’ restaurant, Bella Vino, is housed in a City-owned building. Manolakas had previously challenged the simple eviction filing and a magistrate judge ruled in favor of Manolakas on Jan. 24, 2023. The City appealed the ruling, which put in motion the civil trial and its impacts that roll into the present day.

Hickory-based Matthew Rogers represents the defendant Manolakas. During the trial, Andrew Santaniello represented the City, who further added attorney Daniel E. Peterson. Presiding Judge Wesley Barkley oversaw the proceedings.

Following the verdict, several series of motions were filed by both sides. At the end of 2024, two legal matters remain: A request from the City to the N.C. Court of Appeals, to reverse the verdict and the filed July 25 lawsuit of five Morganton leaders.

Morganton City Manager Sally Sandy, Interim City Attorney Louis Vinay, Cultural and Creative Director Sharon Jablonski, Mayor Pro Tem Wendy Cato, and Morganton Councilman Chris Hawkins have been individually named in a civil suit by the owner of Bella Vino Trattoria & Wine Garden alleging defamation, unfair business practices, malicious prosecution, and abuse of legal processes that have damaged the business.

Representing the officials in this matter is Asheville-based attorney Adam Peoples, of Hall Booth Smith law firm, who defends governmental liability among other focuses.