Tag Archives: Food Law

PACA Trust Litigation Alert

PACA Trust Litigation Alert

PACA Trust Litigation Alert

On January 10, 2014, a civil action was filed in California against Sunfresh USA, Inc. to collect approximately $389,000 in alleged PACA trust debt.

On January 10, 2014, a civil action was filed in North Carolina against Nichols Foodservice, Inc. to collect approximately $204,000 in alleged PACA trust debt.

On January 14, 2014, a civil action was filed in Maryland against Five Days Market, Inc. t/a G Mart International to collect approximately $114,000 in alleged PACA trust debt.

On January 16, 2014, a civil action was filed in Illinois against T&T Food Service, Inc. a/t/a T&T Foodservice, Inc. to collect approximately $90,000 in alleged PACA trust debt.

On January 16, 2014, a civil action was filed in New Jersey against Rockaway Green Farmers Market LLC to collect approximately $38,000 in alleged PACA trust debt.

On January 16, 2014, a civil action was filed in New York against Global Tropical Fresh Fruit Corp. to collect approximately $349,000 in alleged PACA trust debt.

Please check your A/R to see if these cases affect you.  If they do, please do not wait to assert your rights.

Jason Klinowski to Serve as Special PACA Counsel to Allens Canning During its Chapter 11 Bankruptcy Case

Allens Canning

On October 28, 2013, Allens, Inc. d/b/a Allens Canning (the “Debtor”) filed for Chapter 11 bankruptcy protection.  Anticipating over $20 million in potential PACA claims, the Debtor retained Jason Klinowski of Freeborn & Peters LLP’s food industry team to serve as special PACA counsel.  In this capacity, Jason assisted the Debtor in the preparation of the PACA claims procedure order and now manages the Debtor’s obligations under the order.  To be clear, the PACA claims procedure order is a Court approved procedure by which the Debtor and all potential PACA trust beneciaries test the validity of the PACA claims.

In the Courtroom, Jason also helps the Debtors address such complex PACA trust issues as:

  • Whether the Court Should Compel the Debtor to Create and Fund a Segregated PACA Trust Account  (NO)
  • Whether the Debtor May Use PACA Trust Assets in Connection With its Efforts to Reorganize Under Chapter 11 of the Bankruptcy Code (YES)
  • The Proper Use of Pre-Transaction Written Agreements to Limit PACA Trust Liability (to be determined)
  • And more…

The Debtor’s Chapter 11 case not only involves significant amounts of potential PACA trust liability, but it also contains several complex PACA trust issues, the resolution of which could change how the produce industry does business.

PACA Trust Litigation Alert!

PACA Trust Litigation Alert

PACA Trust Litigation Alert

On October 8, 2013, a civil action was filed in Florida against High Point Marketing of NJ, Inc. to collect approximately $30,000 in alleged PACA trust debt.

On October 10, 2013, a civil action was filed in New York against Isadore A. Rapasadi and Sons, Inc. to collect approximately $96,000 in alleged PACA trust debt.

On October 11, 2013, a civil action was filed in New Mexico against Duke City Produce, Inc. to collect approximately $129,000 in alleged PACA trust debt.

On October 14, 2013, a civil action was filed in Ohio against JAO Distributors, Inc. d/b/a Gentile Bros. Company to collect approximately $138,000 in alleged PACA trust debt.

On October 16, 2013, a civil action was filed in California against IBC Produce, Inc. to collect approximately $30,000 in alleged PACA trust debt.

On October 24, 2013, a civil action was filed in Florida against PNL Produce LLC d/b/a Watson’s Produce to collect approximately $9,000 in alleged PACA trust debt.

On October 25, 2013, a civil action was filed in Florida against both Sergio Felipe Produce Corp. and First Coast of Miami LLC to collect approximately $180,000 in alleged PACA trust debt.

On October 25, 2013, a civil action was filed in Pennsylvania against Andrew DePoala Mushrooms, Inc. to collect approximately $188,000 in alleged PACA trust debt.

Please check your A/R to see if these cases affect you.  If they do, please do not wait to assert your rights.

PACA Trust Litigation Alert!

PACA Trust Litigation Alert

     PACA Trust Litigation Alert

On September 24, 2013, a civil action was filed in New York against YCK LLC d/b/a Cross Island Super Foods to collect about $154,000.00 in alleged PACA trust debt.

On September 27, 2013, a civil action was filed in California against Hayes Produce Marketing LP to collect about $68,000.00 in alleged PACA trust debt.

On September 27, 2013, a civil action was filed in Virginia against Andrews Farming LLC to collect about $88,000.00 in alleged PACA trust debt.

Please check your A/R to see if theses cases affect you.  If they do, please do not wait to assert your rights.

 

 

Government Not Required to Prove Intent or Consciousness of Wrongdoing to Convict the Jensen Brothers

Jensen Farms PicAs the produce industry follows the fate of Eric and Ryan Jensen many articles and commentary have surfaced in support of the brothers Jensen.  However, these articles and commentary all focus around a significant misconception about the government’s burden  of proof.  Specifically, the general misconception is that the U.S. Attorney’s Office must prove or otherwise show intent on the part of the Jensen brothers to obtain a criminal conviction.  This is wrong!

The Federal Food Drug and Cosmetic Act (“FD&C Act”) protects the consuming public by allowing the government to regulate the conditions under which food and drugs are manufactured and distributed and it requires those responsible to comply with its provisions.  Under the FD&C Act, misdemeanor criminal responsibility does not require intent or consciousness of wrongdoing.  On the other hand, felony criminal responsibility requires a knowing violation with the specific intent to defraud or mislead.  The FD&C Act also states that a  corporation may commit an offense and all persons who aid and abet its commission are equally guilty.

The Jensen brothers are facing misdemeanor criminal charges, which still carry the threat of imprisonment and significant financial penalties.  Given the misdemeanor nature of the charges, the U.S. Attorney’s Office does not need to allege or prove any type of intent on the part of the Jensen brothers to obtain a criminal conviction.

The foregoing is but one example of why the Jensen brothers’ criminal case is alarming to the produce industry.  With that said, are there any real and meaningful defenses available to the Jensen brothers?  The answer is yes!

Jason Klinowski to Speak at the Upcoming Food Regulatory Compliance Summit in Chicago

Food Regulatory Compliance Summit Logo

On October 4, 2013, Jason Klinowski will join Daniel Shaw – Vice President, Deputy General Counsel at H.J. Heinz Company – to address food recalls and to discuss practical tips and best practices for preventing common pitfalls and minimizing downstream litigation exposure.  Please join us at theWit for this two-day conference and connect with food industry leaders from The Hillshire Brands Company, Kellogg, US Foods, Nestle, MOM Brands, Cargill, H.J. Heinz Company, and others.

PACA Trust Litigation Alert!

PACA Trust Litigation Alert

PACA Trust Litigation Alert

On September 6, 2013, a civil action was filed in California against J.D. Produce, Inc. in an effort to collect approximately $54,000.00 in alleged PACA trust debt.

On September 9, 2013, a civil action was filed in New York against New A & N Food Market, Inc. in an effort to collect approximately $36,000.00 in alleged PACA trust debt.

On September 13, 2013, a civil action was filed in Colorado against Mi Pueblo Latin Market, Inc. t/a Mi Pueblo Market in an effort to collect approximately $202,000.00 in alleged PACA trust debt.

On September 19, 2013, a civil action was filed in New Jersey against Dandrea Produce, Inc. in an effort to collect approximately $600,000.00 in alleged PACA trust debt.

On September 19, 2013, a civil action was filed in Ohio against Arena Produce Co., Inc. in an effort to collect approximately $54,000.00 in alleged PACA trust debt.

Please check your A/R to see if these cases affect you.  If they do, please do not wait to assert your rights.

Another Successful Conference in the Books… Thank You for Joining Us!

Midwest Produce Conference LogoMichael Jordan's Steakhouse LogoI wanted to take a second and thank everyone who joined me and Freeborn’s Food Industry Team at Michael Jordan’s Steakhouse for a cocktail reception after the Midwest Produce Conference & Expo.  Those of you who attended know that Freeborn’s event provides a great way for folks to close out the conference and experience one of Chicago’s “must visit” restaurants.  Our event also helps you maximize your networking time in Chicago by providing a great atmosphere to connect with your produce industry peers and colleagues.  For those of you who could not make it, we hope to see you in New Orleans for the upcoming PMA show.

Jason Klinowski and Freeborn’s Bankruptcy & Financial Restructuring Group Tapped to Represent the Official Committee of Unsecured Creditors in the Pro’s Ranch Markets Chapter 11 Case

Pros Ranch MarketThe Official Committee of Unsecured Creditors in the Pro’s Ranch Markets’ bankruptcy case recently retained Freeborn’s Bankruptcy and Financial Restructuring Group to help maximize their recovery in this Chapter 11 case.  Specifically, Freeborn possesses considerable experience representing official committees of unsecured creditors in chapter 11 cases involving retail grocers, food service companies, and food distribution companies.  Because the attorneys in Freeborn’s Food Industry Team routinely represent these same types of food industry clients, we are highly familiar with the issues affecting both debtors and creditors in this space.  This allows Freeborn to be incredibly effective when it comes to maximizing value for creditors.

PACA Trust Litigation Alert

PACA Trust Litigation Alert

PACA Trust Litigation Alert

On May 31, 2013, a civil action was filed in New York against Robert Guiliano d/b/a Guiliano Brother’s Produce in an effort to collect about $287,100.00 in alleged PACA trust debt.

On June 3, 2013, a civil action was filed in California against Miki’s Farm Fresh Market, Inc. in an effort to collect about $16,200.00 in alleged PACA trust debt.

On June 4, 2013, a civil action was filed in Illinois against FP Drive LLC d/b/a LA International in an effort to collect about $11,100.00 in alleged PACA trust debt.

On June 10, 2013, a civil action was filed in Florida against Alexa Produce, Inc. in an effort to collect about $24,000.00 in alleged PACA trust debt.

On June 11, 2013, a civil action was filed in Massachusetts against Banana Joe’s Farm Stand and Deli, Inc. in an effort to collect about $8,700.00 in alleged PACA trust debt.

On June 14, 2013, a civil action was filed in California against Edgar P. Barajas d/b/a Premier Fresh in an effort to collect about $215,900.00 in alleged PACA trust debt.

On June 19, 2013, a civil action was filed in New York against Southern Hospitality Xanadu LLC d/b/a Southern Hospitality in an effort to collect about $10,700.00 in alleged PACA trust debt.

On June 19, 2013, a civil action was filed in Texas against Farmer’s Fruit and Vegetable Company in an effort to collect about $29,600.00 in alleged PACA trust debt.

On June 20, 2013, a civil action was filed in New York against Lansky’s Operating Corporation d/b/a Lansky’s in an effort to collect about $41,900.00 in alleged PACA trust debt.

On June 22, 2013, a civil action was filed in Florida against Star International Food, LLC in an effort to collect about $7,200.00 in alleged PACA trust debt.

Please check your A/R to see if any of these cases affect you.  If they do, please do not wait to assert your rights.