State pursues lawsuit against Faial restaurant owners

Seeks compensation for patrons’ unused gift certificates

SMITHFIELD – “We guarantee that you won’t leave hungry.”

That was the famous slogan by local restaurateur Jose Faria, owner of Faial Restaurants & Lounge on Douglas Pike and Faial II on Putnam Pike in Greenville, where dishes included everything from littleneck clams steamed with Portuguese spices, chorizo and onions to grilled New York strip loin topped with a fried egg and served with seafood rice and Portuguese potatoes.

Last summer, longtime Faial customers found themselves hungry for answers after learning that the popular restaurant offering American and Portuguese cuisine abruptly closed its doors without explanation. The sudden closure of the restaurants also had upset patrons wondering whether they would be able to redeem their gift certificates.

Getting answers wasn’t easy. The restaurants’ websites were down, and the Faial Facebook page was also “unavailable.”

In February, Attorney General Peter F. Kilmartin filed a lawsuit in Superior Court against Faial and Jose and Emilia Faria for violating the state’s Deceptive Trade Practices Act and Unfair Sales Practices Act.

On Wednesday, Kilmartin announced that his office mailed out affidavits with letters of instruction to more than 1,000 consumers who filed complaints with his office after being left holding useless gift certificates from Faial.

Consumers are asked to complete the affidavit, have it notarized and return it along with the original gift certificate to the Office of Attorney General by July 15. Completed affidavits will be submitted to Rhode Island Superior Court as evidence of the total amount of restitution the state is seeking against the owners.

Consumers who have lost or destroyed their gift certificates can still submit a claim. However, it will be left for the court to determine the adequacy of the claims, based on the evidence presented.

“It is always our first hope that a business owner who finds himself in a situation like the Farias will work with our office to resolve the consumer complaints and make the consumers whole again without having to file a lawsuit,” Kilmartin said. “We recognize the civil litigation process can take time, and we appreciate the patience of consumers through this process.”

Records show Faial Restaurant & Lounge on Douglas Pike, located next door to d. Carlo Trattoria Restaurant, was established and incorporated by Joe and Emilia Faria in 2005; had annual revenue of $500,000 to $1 million; and a staff of approximately 10 to 19 employees. Faial II on Putnam Pike opened in 2014.

Jose and Emily Faria opened Faial at 970 Douglas Pike with their brother-inlaw Antonio Pereira as the experienced chef in the kitchen. Faria and Pereira both came to the United States from the Azores and the island of Faial when they were children. After Antonio married Jose’s sister, they ran Joseph’s in East Providence back in the 1980s. Then they opened the original Joseph’s in Cumberland.

According Kilmartin, Faial closed on or about June 25, 2015, then reopened a few days later after it was reported that a possible buyer had stepped forward. The restaurant, however, shut its doors for good on July 7 after the sale fell through.

Kilmartin’s office began receiving complaints in late June of 2015 from customers who were left holding gift certificates, and within a week of the restaurant closing, the office had received more than 150 complaints from consumers. The number of complaints steadily grew and within a few weeks there were a total 1,110 consumer complaints with gift certificates allegedly valued at more than $152,000.

On July 10, 2015, Kilmartin’s office filed a civil investigative demand against Jose and Emelia Faria, requesting that they appear before investigators to answer to the complaints. They failed to appear despite several attempts, which prompted Kilmartin to file a lawsuit in Superior Court on Feb. 2 seeking relief.

In its complaint, the state argues that the Farias sold gift certificates for goods and services, but failed to provide those goods and services; failed to pay rebates to customers who purchased gift certificates; failed to reimburse consumers for their losses; and failed to keep a list of people who purchased the gift certificates, which were not individually numbered

The Farias had 20 days to file an answer with the court, which is the first step a defendant would make in a civil lawsuit.

But for whatever reason, neither the Farias nor their attorney responded, leaving the state to file a motion for default, which the court granted.

Consumers who have not filed a complaint with the Attorney General’s Office, or who do not receive an affidavit in the mail, can download an affidavit with instructions by visiting www.riag.ri.gov or request one by email at consumers@riag.ri.gov.