Minority shareholder of Cici's Pizza successfully emerges victorious in court dispute
In a highly publicised legal battle, a Dallas County jury has ruled in favour of Gala Capital Partners, awarding them a $46 million judgment against SSCP Management, the investment firm led by Sunil Dharod. The dispute centres around the ownership group that acquired Cici's Pizza out of bankruptcy in 2020.
The two cousins, Anand Gala of Gala Capital Partners and Sunil Dharod of SSCP Management, had a falling out shortly after the acquisition. Gala alleges that Dharod pushed him out of the business, consolidated control, and paid excessive management fees to his own company. Gala sued Dharod for breach of contract, breach of fiduciary duty, and civil conspiracy, while Dharod countersued alleging breach of fiduciary duty and fraud by Gala.
The jury's verdict, announced in July 2025, was based on the claim that SSCP Management pushed out Anand Gala from Cici's and paid exorbitant management fees to their own company. The judgment was awarded due to these actions.
However, Dharod's attorneys claim that the actual enforceable award is $23 million due to duplications in the jury's damages calculation. Final judgment is still pending on certain issues like attorneys’ fees.
The ongoing dispute dates back to the 2020 purchase, in which Dharod put up 70% of capital and Gala 30%. Under the arrangement, SSCP owned 70% of the company and Gala Capital Partners owned 30%. The ownership company was known as Smiley Slice.
The story has been updated to include reactions and questions about the size of the jury award. The jury significantly limited the damages Gala was seeking, awarding a $20 million judgment instead.
The conflict involves complex claims and counterclaims regarding control, management fees, and fiduciary responsibilities in their joint ownership of Cici's. Additional related litigation includes Smiley Slice and Dharod suing Gala for theft of corporate opportunities while he was CEO.
Attorneys for Dharod are considering post-trial and appeal options. However, 70% of the award would go to Dharod himself, as the majority owner of Smiley Slice. The legal battle between the two parties continues, with both sides seeking resolution and justice in their respective claims.
Sources: 1. Restaurant Business Online 2. Texas Lawbook 3. Trellis Law 4. Dallas News
- The dispute between Anand Gala of Gala Capital Partners and Sunil Dharod of SSCP Management, arising from their joint ownership of Cici's Pizza, has been a topic of interest within the restaurant industry, as it involves complex claims about management fees, control, and fiduciary responsibilities.
- In the ongoing legal battle between Gala Capital Partners and SSCP Management, the $46 million judgment, awarded due to excessive management fees and pushing out Anand Gala from Cici's, is a significant figure in the restaurant finance sector, raising questions about business practices in the industry.
