BLACK MOUNTAIN, N.C. (WLOS) — The company behind Black Mountain Brewing and the RailYard project has filed a federal lawsuit against the Town of Black Mountain and several current and former town officials, alleging years of inconsistent enforcement, constitutional violations and financial harm tied to the town’s handling of permits, inspections and parking enforcement.
The lawsuit, filed in U.S. District Court for the Western District of North Carolina, names the Town of Black Mountain, former Town Manager Josh Harrold, former Assistant Town Manager Jessica Trotman, Planning Director Michelle Kennedy, Zoning Administrator Russell Cate and Building Inspector Rick Burton as defendants.
RailYard Hospitality Group alleges the town approved permits, site plans and occupancy for the project before later reversing course and taking enforcement actions that prevented the business from operating fully. The company claims those actions caused substantial financial losses and damaged the project’s future.
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According to the complaint, the Town of Black Mountain issued an initial commercial remodel permit in February 2022 for the RailYard project, followed by a revised commercial permit in September 2022. The town later issued a Certificate of Occupancy and Compliance in March 2023, confirming inspections were complete and occupancy was approved. The RailYard officially opened in April 2023.
The lawsuit alleges the relationship between the business and the town deteriorated over time as town officials imposed new requirements, issued notices of violation and later challenged approvals the business says had already been resolved.
One of the central allegations involves the town’s installation of a chain-link fence around portions of the RailYard property in August 2025 to block parking access. The complaint claims the town did not obtain a court order before installing the fence and did not provide the business an opportunity to appeal the action.
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The lawsuit also alleges the town later created a similar parking setup neaby after previously describing parking at the RailYard property as unsafe.
“The contradiction is impossible to ignore,” RailYard Hospitality Group Managing Member John Richardson said in a press release announcing the lawsuit. “The Town told the public this parking configuration was so dangerous it justified fencing off private property. Months later, the Town created the exact same parking configuration across the street.”
The complaint includes claims of due process violations, equal protection violations, negligence, regulatory taking claims, and federal civil rights violations under 42 U.S.C. 1983. The company is seeking damages exceeding $75,000, attorney’s fees and a jury trial.
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The lawsuit marks the latest development in a controversy that News 13 has followed for months involving inspections, permits and code enforcement tied to Black Mountain Brewing and the RailYard project. Earlier reporting uncovered town records showing years of permitting and inspection issues, including approvals later challenged by town and state officials.
In a press release, Richardson said the lawsuit is about more than one business.
“This case is not about avoiding reasonable regulation,” Richardson said. “It is about demanding that government follow the law, apply standards fairly and treat citizens equally.”
