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How Boston Market Failed

Jay Pandya, CEO of Boston Market, has lost an appeal in one of the numerous lawsuits filed against the company over unpaid bills.

Boston Market’s appeal of a court-ordered default judgment requiring the company to pay $11.9 million to US Foods has been dismissed due to lack of prosecution. The U.S. District Court in Illinois rejected the appeal because the company failed to file a timely response to the court’s directive. This default judgment stems from Boston Market’s ongoing financial struggles and legal battles.

The court initially issued the default judgment in February, acknowledging that such a ruling is a “harsh sanction.” However, the judge emphasized that in this case, it was unavoidable. Boston Market had “intentionally dodged their obligations to the court,” showing “bad faith” in its efforts to delay and avoid the case. The court concluded that both the judge and the plaintiffs had no choice but to proceed with the default judgment.

The $11.9 million lawsuit filed by US Foods is one of the most significant and costly among several lawsuits Boston Market has faced in recent years. According to the suit, the restaurant chain began falling significantly behind on its payments to US Foods in 2022. To manage the financial strain, Boston Market negotiated a promissory note-based payment schedule. However, despite this arrangement, US Foods claimed that Boston Market continued to miss payments, ultimately accumulating $10.5 million in debt, along with $800,000 in interest charges.

Court documents reveal that Boston Market CEO Jay Pandya delayed acknowledging the lawsuit for two months. Even after recognizing the complaint, he missed the October 2023 deadline to file a response. Pandya eventually submitted a response in December 2023 but then filed for personal bankruptcy in the Eastern District of Pennsylvania shortly after. His bankruptcy case was dismissed in January 2024 by a U.S. bankruptcy trustee, who noted that Pandya had failed to provide insurance information for two properties he owned and had not responded to repeated requests for further documentation over the course of two weeks.

Similar delays occurred in the appeal against the default judgment. In both July and August, Pandya was ordered by the court to “show cause why this appeal should not be dismissed for lack of prosecution.” While he did respond earlier in September, he still failed to file the required opening brief, ultimately leading to the dismissal of the appeal.

This dismissal marks yet another legal setback for Boston Market, which has been struggling financially and facing mounting lawsuits over the past few years. The company’s inability to meet its payment obligations and comply with court deadlines has only deepened its financial woes.

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Restaurant Digital
Restaurant Digital
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