A legal battle among the co-owners of a local catering company was set for a hearing Tuesday in Carbon County Court, with one partner accusing the others of mismanagement, exclusion from business decisions, and potential financial wrongdoing.

Richard Arieta, a 25% owner of Ateira’s on First LLC, filed a lawsuit against his business partners — Christine McCaa, Darin McCaa and Melissa Arieta — alleging that they acted illegally and oppressively in managing the company’s affairs.

“Ateira’s on First LLC, is currently without proper corporate governance,” the complaint states, indicating that the company’s management has been “dysfunctional” due to the actions of the other co-owners.

The lawsuit alleges that the McCaas and Melissa Arieta have “unilaterally” made decisions about the business without consulting Richard Arieta, effectively excluding him from the decision-making process. Furthermore, he claims that the defendants have withheld crucial financial information, preventing him from understanding the true state of the business.

In April, the LLC sold and closed on the building at 130 S. First St. in Lehighton, where it had operated for seven years. A new LLC was started and the business moved into the former Blended Bakery space at 158 S First St.

Richard Arieta filed a motion seeking the appointment of a receiver and the establishment of a constructive trust over the business’s assets, alleging that the defendants acted unilaterally and excluded him from the decision-making process.

The defendants, represented by Sebelin Law Offices, filed an answer to the motion, which was the subject of Tuesday’s scheduled hearing. In it, they strongly denied any misconduct.

According to their filing, the business “sold real estate located at 130 S. First St., Lehighton, PA 18235” on April 12 with sales documents signed by all four members, including Richard Arieta.

“It is specifically denied that defendants have acted unilaterally regarding the operation of the business and the sale of the real property owned by the business, sought to exclude plaintiff from the operation of the business, [or] concealed and/or refused to provide information regarding the business profits and the sale of the premises,” lawyers wrote in their response.

The defendants challenged the necessity of a receiver, arguing that “Ateira’s is an LLC and has members, not shareholders,” and that the business has proper corporate governance in place. They further assert that Richard Arieta has been kept informed about the business’s financial matters, including the proceeds from the property sale, which are currently held in escrow.

“Plaintiff has signed, along with all defendants, an escrow agreement wherein the proceeds are held, by agreement, at Jim Thorpe Neighborhood Bank,” the filing notes.