Jerry S. Stockton v. Sun Holdings, Inc., et al.,

  • Court: Texas State, Dallas County, County Court
  • Case Number: CC-19-02768-D
  • Filed: May 8, 2019
  • Judges: Dianne Jones | David Evans | Jones Regarding Hearings | Paula Rosales
  • Case Type: Debt/Contract
  • Cause: Fraud

Parties Involved

  • Plaintiff(s):Jerry S. Stockton
    • Counsel for Plaintiff: Robert M. Hill |  Chase Thomas Hilton |  Daniel Henry Charest | Spencer Morgan lee Cox
    • Expert witness for Plaintiff(s): David N. Fuller | E. Lawrence Vincent


  • Defendant(s): Sun Holdings, Inc., |  Guillermo Perales | Florida Pop, LLC, | Tulsa Pop LLC | Oklahoma Pop Restaurants, LLC | DWF Pop Restaurants, LLC | ADL Investments, LLC | Pop Investments, LLC | Pop Holdings, LLC | Pop Restaurants, LLC


Verdict Information

  • Verdict Date: February 14, 2024
  • Damages awarded to Plaintiff: $30,718,873.47
    • Compensatory Damages: $15,618,873.47
    • Punitive damages: $15,100,000.00

 About the Case


Sun Holdings, Inc. and Pop Restaurants, both under Guillermo Perales’ ownership, completed the acquisition of twenty-three Popeyes Restaurants in the Dallas-Fort Worth metroplex from franchisor AFC Enterprises in November 2001. Each franchisee, per the Popeyes Louisiana Kitchen Franchise Agreement, designated a Key Operator entitled to 5% ownership or operating profits. Stockton served as Key Operator for all 23 restaurants before and after the sale.

Perales’ companies expanded to over 140 Popeyes Restaurants over 17 years, with Stockton continuing as Key Operator. Instead of receiving annual operating profits, Stockton’s interest was reinvested until retirement. However, despite agreements, Stockton alleges breach of contract, common-law fraud, promissory estoppel, and constructive or resulting trust, seeking an accounting.


Stockton claims damages, interest, attorney’s fees, and equitable relief for breach of contract. He asserts that the discovery rule, fraudulent concealment, or equitable estoppel prevent the claims from being barred by the statute of limitations.

Jury Verdict:

Stockton is awarded $15,618,873.47 in actual damages jointly and severally from Defendants. Additionally, exemplary damages are awarded as follows: $12,000,000 from Guillermo Perales, $2,000,000 from Sun Holdings, Inc., $100,000 each from Pop Restaurants, L.L.C., Pop Investments, LP, DFW Pop Restaurants, LLC, Oklahoma Pop Restaurants, LLC, Tulsa Pop, LLC, Florida Pop, LLC, and Sooner Restaurant Management, LLC.