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Suit by owner of Rockies Diner involving ownership of Gyro Shack thrown out of court

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Last fall, BoiseDev told you about a lawsuit over the origin of the growing Gyro Shack chain.

Petros “Rocky” Paflias sued in Ada County District Court – saying his former business partner Gus Zaharioudakis improperly sold the business.

Now, a judge tossed out the lawsuit, after Paflias failed to show up for court appearances.

The lawsuit

Here’s how we described the suit in October of 2018:

According to court documents, Paflias says he sold a 50% interest in the Gyro Shack restaurant on Overland Rd. in Boise in 2009 to another man – Tom Herf. In his complaint, Pafilias said Herf then sold the 50% stake to Zaharioudakis later that year when Herf decided to move to Arizona.

Then, in February 2015 Zaharioudakis sold the entire business to Doug Miller and Seth Brink after health issues forced him to quit the business.

But in the lawsuit, Paflias said Zaharioudakis didn’t have the right to make that sale, and produced a contract between Herf and Zaharioudakis stating Herf had a first right of refusal to repurchase the stake in the business for $50,000.

Paflias claimed Herf had signed over the first right of refusal to him, but after a judge said that didn’t hold up, Herf joined the lawsuit against Zaharioudakis.

What’s unclear from the lawsuit documents reviewed by BoiseDev and an extensive interview with Pafilias is if Zaharioudakis was, in fact, purchasing all or only half of the Gyro Shack business and concept as Pafilias claims.

The bottom line: Rocky says Gus sold the restaurant chain and concept when he only owned 50% of it and ignored a first-right-of-refusal clause he and Tom Herf had to buy it back.

The resolution

During an April 3rd hearing, Paflias’ attorney of record told the court he wanted off the case.

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According to minutes for the hearing, attorney Jeff Strother said he “has heard nothing from his client or any representative of his since the filing of his motion.”

Strother is the second lawyer to ask to be removed from the case.

The court agreed to let Strother off the hook.

Then, judge Lynn Norton issued another order tossing the case out of court.

“The court notes that more than 21 days has elapsed since the entry and service of that order,” the court wrote. “Plaintiffs have failed to appoint another attorney to appear in this matter or to otherwise appears as a self-represented party”

The court then booted the case, citing Idaho’s Rules of Civil Procedure.

“Plaintiff’s complaint and all claims and causes of action averted by Plaintiffs in the above-entitled matter are hereby dismissed with prejudice.”

More Rockies Diner coverage:

Don Day
Don is the founder and editor of BoiseDev. He is a National Edward R. Murrow Award winner and a Stanford University John S. Knight Fellow.

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