Turkey Leg Hut, a well-known restaurant in Houston, is currently being sued by US Foods Inc. for a whopping amount of nearly $1.3 million. As per the lawsuit filed in a U.S. district court in Illinois in December 2022, the corporation is suing the restaurant. And its owner Nakia Price for an alleged outstanding debt and lawsuit fees, which sum up to $1,288,583.12.
Background on PACA
Perishable Agricultural Commodities Act (PACA) is a federal law that aims to promote fair trade practices. It basically works in the fruit and vegetable industry. The law is enforced by the U.S. Department of Agriculture and it’s intended to protect businesses that deal in perishable agricultural commodities from any form of unfair trade practices and to ensure the timely resolution of disputes.
Allegations of Non-Payment
The lawsuit claims that it all began in September 2020, when US Foods states that it supplied produce, and other non-PACA foods. And food-related products and services to Turkey Leg Hut, in exchange for the restaurant’s timely payment of invoices. The lawsuit also states that Turkey Leg Hut had agreed to pay 1.5% interest per month on any payment past due until collected. From May 2022 to September 2022, Turkey Leg Hut is sued or alleged to have ordered produce from US Foods. Which the company claims it sold, shipped, and delivered. However, despite submitting invoices for payment. US Foods is accusing Turkey Leg Hut of failing to pay $85,106.17 for the produce. The balance plus interest and fees, according to US Foods, adds up to more than $1 million. Which is what the company is asking for in the lawsuit.
The Lawsuit: Turkey Leg Hut Sued
The lawsuit goes on to claim that Turkey Leg Hut repeatedly ignored US Foods’ attempts to collect the outstanding debt and that the company had no choice but to file the lawsuit in order to recover the funds that are owed to them. US Foods is seeking $1,288,583.12 in damages, which includes the original debt, interest, and fees associated with the lawsuit.
Consequences of the Lawsuit
The lawsuit has the potential to cause severe consequences for the restaurant. Including the possibility of having to pay a large sum of money, which could put the business in financial difficulty. Additionally, it could also lead to damage to the restaurant’s reputation, which could result in a decline in customer numbers. And ultimately lead to the restaurant’s closure.
In summary, the sued or lawsuit filed by US Foods Inc. against Turkey Leg Hut and its owner, Nakia Price, highlights the importance of businesses adhering to the regulations. And codes of fair business practices laid out by the Perishable Agricultural Commodities Act. It also serves as a reminder that disputes between businesses must be resolved quickly. And fairly too, in order to avoid costly and time-consuming lawsuits.