SECURITIES AND EXCHANGE COMMISSION

                         Washington, D.C. 20549

                                FORM 8-K

                             CURRENT REPORT


Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934

Date of Report (Date of earliest event reported):  September
15, 1995 (September 14, 1995)


                     HUDSON'S GRILL OF AMERICA, INC.
         (Exact name of Registrant as specified in its Charter)


                               California
             (State or other jurisdiction of incorporation)


                                 0-13642
                       (Commission or File Number)


                               95-3477313
                  (IRS Employer Identification Number)


          16970 Dallas Parkway, Suite 402, Dallas, Texas 75248
                (Address of Principal Executive Offices)


Registrant's telephone number, including area code:
(214) 931-9743



Item 5.  Other Events.

     Hudson's Grill of America, Inc. (the "Company")  settled
"Torres v. Hudson's Grill of America", a case involving the
Hudson's Grill located in Whittier, California.  The
plaintiffs had alleged libel, wrongful termination and sexual
harassment.  Under Hudson's insurance policies then in effect
with Fireman's Fund Insurance Company, Hudson's insurance
carrier was to provide Hudson's legal defense and pay for at
least the settlement of the libel action.  Fireman's funded
all of the settlement; the Company did not have to fund any
part of the settlement.  The parties agreed to keep the
settlement confidential, and the parties are limited to making
the following statement: "The matter was settled to my
satisfaction.  No party admitted any liability."  Final
settlement documents are expected to be drafted shortly.  In
the near future, the Company will seek to recover from
Fireman's the legal expenses incurred by the Company in the
defense of this case.



Item 7.  Exhibits.

     1.     Press Release dated September 15, 1995 with regard
to the settlement of the "Torres v. Hudson's Grill of America,
Inc." case.


                               SIGNATURES

     Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.

Date:  September 15, 1995


                              HUDSON'S GRILL OF AMERICA, INC.
                              Registrant


                              s/s David L. Osborn
                              David L. Osborn

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