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Battle of the Brews: Santa Fe Brewing Co. files lawsuit against Marble co-owner, former employee

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A couple walks toward the tasting room at Santa Fe Brewing Co., in this 2016 file photo.

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Trouble is brewing between the two biggest businesses in New Mexico’s craft beer scene.

Santa Fe Brewing Co. filed a lawsuit in 1st Judicial District Court on Friday against a former employee and a new Marble co-owner, Jarrett Babincsak, for breach of contract and fraud.

Santa Fe Brewing alleges that Babincsak used his severance package to buy his stake in Marble Brewery, agreed to do consulting work while actively working for its competitor and poached employees while under contract.

SFBC is seeking punitive damages, alleging that Babincsak “used his inside knowledge to harm Santa Fe Brewing Company,” according to the lawsuit. After owners denied Babincsak’s request to buy a stake in Santa Fe Brewing in 2024, the complaint alleges, Babincsak resigned and presented a severance package that involved upfront payment and ongoing consulting services.

On Jan. 3, one day after Babincsak’s contract was up, according to the lawsuit, Marble announced Babincsak as a new co-owner. While still obligated to provide consulting services to SFBC until Feb. 28, Babincsak was now employed at Santa Fe Brewing’s biggest competitor.

During his consulting period, the complaint alleges, Babincsak tried to convince Santa Fe Brewing employees to leave and follow him to Marble. Santa Fe Brewing would not have agreed to the severance package had it known Babincsak planned to work for its direct competitor, the complaint states.

Neither Santa Fe Brewing nor its lawyers could be reached for comment Tuesday.

“I am aware of the matter, and it is being handled thoughtfully, with the appropriate guidance,” Babincsak wrote in a statement to the Journal. “My focus remains on our team and what we’re building here at Marble.”

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