Food distributor claims KNB Restaurants owes $114,000

By Glenn Minnis | Jun 2, 2018

​A California merchant has filed a lawsuit against a local restaurant, alleging non-payment for goods and services over a period of time dating as far back as February 2014.

SAN FRANCISCO – A California merchant has filed a lawsuit against a local restaurant, alleging non-payment for goods and services over a period of time dating as far back as February 2014.

Daylight Foods Inc. recently filed suit in U.S. District Court for the Northern District of California, alleging breach of contract by KNB Restaurants and principal owner Pluto Inc. In all, Daylight argues that it is now owed about $114,000.

The lawsuit also names KNB President Louis G. Kimball and Vice President Gerald A. Bugas as defendants. 

A wholesale produce distributor based in Milpitas, Daylight alleges in court documents that it delivered goods to KNB over a more than four-year period with most delivered between March 10, 2018 and May 19, 2018.

As a precursor and added precaution to entering into the deal, Daylight stipulates that it negotiated to become a beneficiary in a statutory trust with Pluto. Even now, the plaintiff alleges that the defendant has not disputed the debt it owes and has only offered the explanation of “cash flow problems” as the reason for nonpayment.

The lawsuit seeks a judgment against the two  defendants seeking the $114,000 and pre-judgment interest, costs and attorneys’ fees.

The lawsuit also seeks any further relief deemed to be suitable and proper by the court. The seven-count action also accuses Kimball and Bugas with “unlawful dissipation of trust assets by a corporate official” and “breach of personal guaranty.”

Daylight is represented by Jennifer Niles from the California law offices of Marion Quesenbery.

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