A federal court has dismissed an appeal of a $15 million judgment against Boston Market over unpaid bills it owes to US Foods over a failure to timely file documents.
The Seventh Circuit U.S. Court of Appeals had given Jay Pandya, the company’s owner, several weeks to file an opening brief in its effort to overturn the earlier ruling. It finally dismissed the case earlier this month over “failure to prosecute.”
The reasoning was similar to the issue that ultimately led to the $15 million judgment in the first place.
US Foods sued Boston Market last year over unpaid bills, saying the chain had refused to pay more than $10 million owed for the distribution of food and other products. The end of that contract forced employees at Boston Market restaurants around the country to source products from Costco, Restaurant Depot and other retailers.
A judge in January ruled in favor of the distributor, citing Boston Market’s and Pandya’s “bad faith,” “delay tactics” and “willful disregard” for the litigation. The ruling ultimately awarded US Foods $15 million in damages and court costs.
Boston Market and Pandya appealed the next month. But according to court documents, their attorney withdrew from the case in April.
Boston Market’s portion of the appeal was later dismissed after no attorney appeared for the chain. Pandya, as the company’s owner, was given more time. But he, too, was twice ordered to “show cause why this appeal should not be dismissed.” That brief was never filed and the court ultimately dismissed the case.
(For more, check out The Demise of Boston Market.)
More than 90% of Boston Market’s locations have closed since the end of 2022, leaving the chain with about two dozen restaurants.
The chain has been sued more than 150 times, mostly for unpaid bills from a variety of litigants, including landlords, former employees and numerous vendors, including multiple distributors. The company that bought Corner Bakery has also sued Pandya and Boston Market over their treatment of that chain in the years before it was put into bankruptcy and sold to the owner of Cici’s.
As for the creditors, they’re left fighting for whatever assets they can find. Fifth Third Bank, which is holding just over $250,000 in an account in Boston Market’s name, has sued US Foods and several other creditors, including the Arizona Department of Revenue, after receiving several conflicting orders for the bank to turn over the funds.
Boston Market grew rapidly in the 1990s and at one point had more than 1,200 locations. But the chain filed for bankruptcy in 1998 and closed hundreds of locations. It had been on a steady decline in the years afterward amid multiple ownership changes.
Pandya acquired the company in 2020 and promised rapid growth. It operated about 300 locations at the end of 2022. But it has closed most of them since.
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