South Mill Mushroom LLC v. Rain Forest Produce, Inc. et al, No. 5:2020cv00217 - Document 162 (C.D. Cal. 2021)
Court Description: JUDGMENT AND ORDER FOR THE COURT TO RETAIN JURISDICTION TO ENFORCE THE ORDER GRANTING STIPULATION FOR PACA TRUST CLAIMS PROCEDURE by Judge Jesus G. Bernal. This Court's Order Granting Stipulation for PACA Trust Claims Procedure established a p rocedure for the identification of holders of valid trust claims under the Perishable Agricultural Commodities Act of 1930, as amended, 7 U.S.C. 499e(c) against Rain Forest 25 . The Creditors' claims cumulatively total $1,701,103.78. (MD JS-6, Case Terminated). (iv)
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South Mill Mushroom LLC v. Rain Forest Produce, Inc. et al Doc. 162 1 2 3 4 JS-6 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA - EASTERN DIVISION 10 11 12 13 14 SOUTH MILL MUSHROOM, LLC, et al., vs. Plaintiffs, 15 RAIN FOREST PRODUCE, INC., et al., 16 Defendants. Case No: 5:20−cv−00217 JGB (KKx) JUDGMENT AND ORDER FOR THE COURT TO RETAIN JURISDICTION TO ENFORCE THE ORDER GRANTING STIPULATION FOR PACA TRUST CLAIMS PROCEDURE 17 18 19 AND INTERVENING COMPLAINTS 20 21 22 23 24 25 26 27 28 Judgment Page 1 of 13 Dockets.Justia.com 1 Before this Court is the Stipulation for Judgment and for the Court to Retain 2 Jurisdiction to Enforce the Order Granting Stipulation for PACA Trust Claims 3 4 Procedure filed by the South Mill Group1; the Best Buy Group2; Intervening 5 Plaintiff, National Commercial Recovery, Inc. d/b/a Blair Smith and Associates3; 6 C.H. Robinson Worldwide, Inc., d/b/a C.H. Robinson Company, Inc., d/b/a C.H. 7 8 Robinson Company, d/b/a C.H. Robinson, Inc., d/b/a Robinson Fresh; Forest 9 Mushroom Food, Inc., d/b/a Guans Mushroom Co.; Papaya Fresh, Inc. (collectively, 10 the “Creditors”) and Defendants, Rain Forest Produce, Inc. (“Rain Forest”), 11 12 13 Fernando Pantoja, and Anthony (Tony) Perez. This Court has reviewed the Stipulation, and been fully advised in the premises, 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1 The South Mill Group consists of Plaintiffs, South Mill Mushroom, LLC d/b/a Champ’s Mushrooms; La Sucursal Produce, Inc.; Coliman Produce, Inc.; Treto’s Inc.; and Antelope Distributing, Inc. 2 The Best Buy Group consists of Intervening Plaintiffs, Best Buy Produce, Int’l, Inc.; Coast Distributors, Inc., d/b/a Coast Tropical; Coast Citrus Distributors, Inc., d/b/a Olympic Fruit & Vegetable; Excell Prod. Inc., Belle Ami Produce, Inc., d/b/a Great Earth Produce; Shapiro-Gilman-Shandler Co.; Riverfront Produce Company, LLC; Umina Bros., Inc.; V.I.P. Marketing, Inc.; Del Fresh Produce, Inc.; Pacific Trellis Fruit, LLC; R & C Berndt, Inc., d/b/a Sierra Produce; South Valley Mushroom Farm, Inc.; Marikian Produce Company, Inc.; Stella Distributing, Inc.; G.W. Palmer & Co., Inc.; Pacific Fresh Produce, Inc.; Kern Ridge Growers, LLC; Val-Produce, Inc., d/b/a Valley Fruit & Produce Co.; Calvera, Inc.; U.S. Farm Produce Corporation, d/b/a Central Produce; L.A. Vegetable, Inc.; Fresh Quality Produce, Inc.; Brandt Farms, Inc.; Mountain High Potato & Onion, Inc.; Dimetri Gardikas Produce Co., Inc.; Cal Fresco, LLC; Cal Pine Distributors, LP; and Michael Cutler of California, Inc. 3 As Assignee of Brand Produce, Inc.; Maui Fresh Int’l., LLC; A&F Distributing Corp.; Marquez Produce, Inc.; No Limits Produce, Inc.; and, Peter Chhoeu Enterprises, Inc., d/b/a Greenfield Produce Imports. 28 Judgment Page 2 of 13 1 IT IS ORDERED: 2 3 4 FINDINGS OF FACT 1. This Court’s Order Granting Stipulation for PACA Trust Claims 5 Procedure (the “PACA Claim Order”) established a procedure for the identification 6 of holders of valid trust claims under the Perishable Agricultural Commodities Act 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 of 1930, as amended, 7 U.S.C. §499e(c) (“PACA”) against Rain Forest [DE 25]. 2. The Creditors filed and served their Proofs of Claim as follows: CLAIMANT South Mill Mushroom, LLC Antelope Distributing, Inc. Coliman Produce, Inc. La Sucursal Produce, Inc. Treto’s Inc. Brand Produce, Inc. Maui Fresh Intl, Inc. A&F Distributing Corp. Marquez Produce, Inc. No Limits Produce, Inc. Peter Chhoeu Enterprises, Inc. C.H. Robinson Worldwide, Inc. Belle Ami Produce, Inc. Best Buy Produce International, Inc. La Vegetable, Inc. Marikian Produce Company, Inc. Michael Cutler of California, Inc. Brandt Farms Inc. Mountain High Potato & Onion, Inc. Pacific Fresh Produce, Inc. Cal Fresco, LLC Pacific Trellis Fruit, LLC R & C Berndt, Inc. Riverfront Produce Company, LLC DOCKET NO. 70 71 72 74 75 28, 30 28, 30 28, 30 28, 30 28, 30 28, 30 33 52 53 54 56 57 58 59 61 62 63 64 65 28 Judgment Page 3 of 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Shapiro-Gilman Shandler Co. South Valley Mushroom Farm, Inc. Cal Pine Distributors, LP Stella Distributing, Inc. U.S. Farm Produce Corporation Umina Bros., Inc. VIP Marketing, Inc. Calvera, Inc. Coast Citrus Distributor, Inc., d/b/a Coast Tropical Coast Citrus Distributor, Inc., d/b/a Olympic Fruit & Vegetable Distributors Del Fresh Produce, Inc. Dimetri Gardikas Produce Co., Inc. Excell Produce, Inc. Fresh Quality Produce, Inc. G.W. Palmer & Co., Inc. Kern Ridge Growers, LLC Val-Pro, Inc. Papaya Fresh, Inc. Forest Mushroom Food, Inc. 3. 4. The Creditors also filed a Complaint, an Amended Complaint, During the transactions subject to their claims, the Creditors: a. Sold perishable agricultural commodities, as defined under PACA, to Rain Forest, in interstate commerce; 23 25 83 85 86 87 88 89 90 55 37, 78 27, 29, 31, 35, 40, 42, 51]. 21 24 82 Complaints-in-Interventions, and/or Amended Complaints-in-Intervention [DE 1, 20 22 66 67 68 69 73 76 77 80 81 b. Held valid PACA licenses issued by the United States Department of Agriculture (“USDA”); and c. 26 Included the required statutory statement under PACA on the 27 28 Judgment Page 4 of 13 1 face of their invoices and timely sending them to Rain Forest. 2 See, Creditors’ PACA Proofs of Claim. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 5. During the transactions at issue, Rain Forest held a valid PACA license, number 20130929, issued by the USDA. 6. The Creditors’ claims cumulatively total $1,701,103.78, calculated as follows: CREDITOR South Mill Mushroom, LLC Antelope Distributing, Inc. Coliman Produce, Inc. La Sucursal Produce, Inc. Treto’s Inc. Brand Produce, Inc. Maui Fresh Intl, Inc. A&F Distributing Corp. Marquez Produce, Inc. No Limits Produce, Inc. Peter Chhoeu Enterprises, Inc. C.H. Robinson Worldwide, Inc. Belle Ami Produce, Inc. Best Buy Produce International, Inc. La Vegetable, Inc. Marikian Produce Company, Inc. Michael Cutler of California, Inc. Brandt Farms Inc. Mountain High Potato & Onion, Inc. Pacific Fresh Produce, Inc. Cal Fresco, LLC Pacific Trellis Fruit, LLC R & C Berndt, Inc. Riverfront Produce Company, LLC Shapiro-Gilman Shandler Co. South Valley Mushroom Farm, Inc. CLAIM AMOUNT $442,456.32 $ 11,063.84 $ 24,815.82 $ 38,074.59 $ 15,981.06 $ 63,687.07 $ 8,160.65 $ 25,520.10 $ 9,501.50 $ 4,561.67 $ 8,625.39 $ 51,312.73 $ 88,096.83 $113,750.11 $ 27,750.98 $ 29,586.98 $ 9,778.76 $ 41,913.44 $ 32,813.92 $ 8,453.05 $ 49,687.16 $ 20,134.05 $ 9,004.06 $ 98,883.47 $ 8,699.54 $ 15,163.02 28 Judgment Page 5 of 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Cal Pine Distributors, LP Stella Distributing, Inc. U.S. Farm Produce Corporation Umina Bros., Inc. VIP Marketing, Inc. Calvera, Inc. Coast Citrus Distributor, Inc., d/b/a Coast Tropical Coast Citrus Distributor, Inc., d/b/a Olympic Fruit & Vegetable Distributors Del Fresh Produce, Inc. Dimetri Gardikas Produce Co., Inc. Excell Produce, Inc. Fresh Quality Produce, Inc. G.W. Palmer & Co., Inc. Kern Ridge Growers, LLC Val-Pro, Inc. Papaya Fresh, Inc. Forest Mushroom Food, Inc. 7. 21 22 23 24 25 26 27 6,588.76 10,295.62 6,058.05 26,060.23 42,453.65 10,992.38 34,678.24 $ 16,253.80 $ $ $ $ $ $ $ $ $ 51,058.15 27,696.64 43,754.78 1,118.76 30,710.66 21,765.82 20,552.31 71,684.39 21,905.43 No party objected to the validity or amount of the Creditors’ PACA trust claims. 8. The Creditors received two interim distributions cumulatively totaling $1,246,461.69, calculated and applied as follows: 19 20 $ $ $ $ $ $ $ CREDITOR South Mill Mushroom, LLC Antelope Distributing, Inc. Coliman Produce, Inc. La Sucursal Produce, Inc. Treto’s Inc. Brand Produce, Inc. Maui Fresh Intl, Inc. A&F Distributing Corp. Marquez Produce, Inc. No Limits Produce, Inc. DISTRIBUTION AMOUNT $324,204.08 $ 8,106.89 $ 18,183.47 $ 27,898.66 $ 11,709.92 $ 46,665.87 $ 5,979.61 $ 18,699.52 $ 6,962.10 $ 3,342.50 28 Judgment Page 6 of 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Peter Chhoeu Enterprises, Inc. C.H. Robinson Worldwide, Inc. Belle Ami Produce, Inc. Best Buy Produce International, Inc. La Vegetable, Inc. Marikian Produce Company, Inc. Michael Cutler of California, Inc. Brandt Farms Inc. Mountain High Potato & Onion, Inc. Pacific Fresh Produce, Inc. Cal Fresco, LLC Pacific Trellis Fruit, LLC R & C Berndt, Inc. Riverfront Produce Company, LLC Shapiro-Gilman Shandler Co. South Valley Mushroom Farm, Inc. Cal Pine Distributors, LP Stella Distributing, Inc. U.S. Farm Produce Corporation Umina Bros., Inc. VIP Marketing, Inc. Calvera, Inc. Coast Citrus Distributor, Inc., d/b/a Coast Tropical Coast Citrus Distributor, Inc., d/b/a Olympic Fruit & Vegetable Distributors Del Fresh Produce, Inc. Dimetri Gardikas Produce Co., Inc. Excell Produce, Inc. Fresh Quality Produce, Inc. G.W. Palmer & Co., Inc. Kern Ridge Growers, LLC Val-Pro, Inc. Papaya Fresh, Inc. Forest Mushroom Food, Inc. 9. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 6,320.14 37,598.74 64,551.81 83,348.92 20,334.17 21,679.48 7,165.26 30,711.53 24,043.97 6,193.87 36,407.62 14,752.97 6,597.61 72,455.58 6,374.48 11,110.50 4,827.82 7,543.98 4,438.95 19,095.30 31,107.37 8,054.53 25,410.03 $ 11,909.76 $ $ $ $ $ $ $ $ $ 37,412.20 20,294.35 32,060.74 819.76 22,502.84 15,948.62 15,059.44 52,525.81 16,050.92 During the transactions at issue, Fernando Pantoja and Anthony (Tony) Perez (collectively referred to herein as “the Individual Defendants”) were Rain 27 28 Judgment Page 7 of 13 1 Forest’s officers, directors and co-owners, as well as listed as principals on Rain 2 Forest’s PACA license. 3 4 10. During all relevant times herein, the Individual Defendants were jointly 5 and severally responsible for the daily management and control of Rain Forest, 6 including, without limitation, responsibility for (a) making the financial decisions 7 8 for Rain Forest; (b) managing the daily operations of Rain Forest; (c) determining 9 which Rain Forest creditors would receive payments and the amount(s) and timing 10 of those payments; (d) withdrawing funds from Rain Forest’s banking accounts and 11 12 directing the distribution of those funds; (e) buying and selling perishable 13 agricultural commodities in the name of Rain Forest; and, (f) collecting, depositing 14 and distributing proceeds from Rain Forest’s sale of perishable agricultural 15 16 17 18 19 20 21 22 23 24 25 26 commodities, including those commodities that are the subject of this Stipulation. 11. During all times relevant herein, the Individual Defendants were in positions to and in fact did jointly and severally control Rain Forest’s assets, including the PACA trust assets that are the subject of this Stipulation. 12. During all times relevant herein, the Individual Defendants were statutory trustees under PACA having fiduciary duties to the Creditors to preserve Rain Forest’s PACA trust assets for the benefit of the Creditors until the PACA trust claims are fully paid. IT IS FURTHER ORDERED: 27 28 Judgment Page 8 of 13 JUDGMENT 1 2 3 4 A. Creditors are perfected trust beneficiaries of Rain Forest Produce, Inc. under Section 5(c) of the Perishable Agricultural Commodities Act of 1930, as 5 amended, 7 U.S.C. §499e(c), in the total of $454,642.09 plus post-judgment interest 6 pursuant to 28 U.S.C. §1961 until paid in full (the “PACA Trust Amount”), 7 8 calculated as follows: 9 CREDITOR 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 South Mill Mushroom, LLC Antelope Distributing, Inc. Coliman Produce, Inc. La Sucursal Produce, Inc. Treto’s Inc. Brand Produce, Inc. Maui Fresh Intl, Inc. A&F Distributing Corp. Marquez Produce, Inc. No Limits Produce, Inc. Peter Chhoeu Enterprises, Inc. C.H. Robinson Worldwide, Inc. Belle Ami Produce, Inc. Best Buy Produce International, Inc. La Vegetable, Inc. Marikian Produce Company, Inc. Michael Cutler of California, Inc. Brandt Farms Inc. Mountain High Potato & Onion, Inc. Pacific Fresh Produce, Inc. Cal Fresco, LLC Pacific Trellis Fruit, LLC R & C Berndt, Inc. Riverfront Produce Company, LLC VALID PACA TRUST CLAIM AMOUNT $118,252.24 $ 2,956.95 $ 6,632.55 $ 10,175.93 $ 4,271.14 $ 17,021.20 $ 2,181.04 $ 6,820.58 $ 2,539.40 $ 1,219.17 $ 2,305.25 $ 13,713.99 $ 23,545.02 $ 30,401.19 $ 7,416.81 $ 7,907.50 $ 2,613.50 $ 11,201.91 $ 8,769.95 $ 2,259.18 $ 13,279.54 $ 5,381.08 $ 2,406.45 $ 26,427.89 28 Judgment Page 9 of 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Shapiro-Gilman Shandler Co. South Valley Mushroom Farm, Inc. Cal Pine Distributors, LP Stella Distributing, Inc. U.S. Farm Produce Corporation Umina Bros., Inc. VIP Marketing, Inc. Calvera, Inc. Coast Citrus Distributor, Inc., d/b/a Coast Tropical Coast Citrus Distributor, Inc., d/b/a Olympic Fruit & Vegetable Distributors Del Fresh Produce, Inc. Dimetri Gardikas Produce Co., Inc. Excell Produce, Inc. Fresh Quality Produce, Inc. G.W. Palmer & Co., Inc. Kern Ridge Growers, LLC Val-Pro, Inc. Papaya Fresh, Inc. Forest Mushroom Food, Inc. B. $ $ $ $ $ $ $ $ $ 2,325.06 4,052.32 1,760.94 2,751.64 1,619.10 6,964.93 11,346.28 2,937.85 9,268.21 $ 4,344.04 $ $ $ $ $ $ $ $ $ 13,645.95 7,402.29 11,694.04 299.00 8,207.82 5,817.20 5,492.87 19,158.58 5,854.51 This Court enters Judgment in the Creditors’ favor and against Rain Forest Produce, Inc., Fernando Pantoja, and Anthony (Tony) Perez – jointly and 18 severally - in the amount of $454,642.09 as separately set forth above, plus post- 19 judgment interest pursuant to 28 U.S.C. §1961 from the date of entry of judgment 20 21 22 until paid in full, all of which qualifies for protection under the PACA trust, 7 U.S.C. §499e(c), as follows: 23 24 25 26 27 CREDITOR South Mill Mushroom, LLC Antelope Distributing, Inc. Coliman Produce, Inc. La Sucursal Produce, Inc. JUDGMENT AMOUNT $118,252.24 $ 2,956.95 $ 6,632.55 $ 10,175.93 28 Judgment Page 10 of 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Treto’s Inc. Brand Produce, Inc. Maui Fresh Intl, Inc. A&F Distributing Corp. Marquez Produce, Inc. No Limits Produce, Inc. Peter Chhoeu Enterprises, Inc. C.H. Robinson Worldwide, Inc. Belle Ami Produce, Inc. Best Buy Produce International, Inc. La Vegetable, Inc. Marikian Produce Company, Inc. Michael Cutler of California, Inc. Brandt Farms Inc. Mountain High Potato & Onion, Inc. Pacific Fresh Produce, Inc. Cal Fresco, LLC Pacific Trellis Fruit, LLC R & C Berndt, Inc. Riverfront Produce Company, LLC Shapiro-Gilman Shandler Co. South Valley Mushroom Farm, Inc. Cal Pine Distributors, LP Stella Distributing, Inc. U.S. Farm Produce Corporation Umina Bros., Inc. VIP Marketing, Inc. Calvera, Inc. Coast Citrus Distributor, Inc., d/b/a Coast Tropical Coast Citrus Distributor, Inc., d/b/a Olympic Fruit & Vegetable Distributors Del Fresh Produce, Inc. Dimetri Gardikas Produce Co., Inc. Excell Produce, Inc. Fresh Quality Produce, Inc. G.W. Palmer & Co., Inc. Kern Ridge Growers, LLC Val-Pro, Inc. Papaya Fresh, Inc. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,271.14 17,021.20 2,181.04 6,820.58 2,539.40 1,219.17 2,305.25 13,713.99 23,545.02 30,401.19 7,416.81 7,907.50 2,613.50 11,201.91 8,769.95 2,259.18 13,279.54 5,381.08 2,406.45 26,427.89 2,325.06 4,052.32 1,760.94 2,751.64 1,619.10 6,964.93 11,346.28 2,937.85 9,268.21 $ 4,344.04 $ $ $ $ $ $ $ $ 13,645.95 7,402.29 11,694.04 299.00 8,207.82 5,817.20 5,492.87 19,158.58 28 Judgment Page 11 of 13 1 Forest Mushroom Food, Inc. 2 3 4 5 C. 8 9 12 D. 15 16 17 18 19 20 21 22 23 24 25 The PACA Trust Account established pursuant to the PACA Claims Order shall remain in existence after the closure of this case to facilitate the continued collection of PACA Trust Assets in connection with this matter. E. The professionals identified in the PACA Claims Order shall continued to comply with the terms of such Order in the handling and distributing of the Assets. F. 13 14 This Court retains jurisdiction over the PACA Claims Order, as Rain liquidation of its remaining assets, and collection of any outstanding receivables. 10 11 5,854.51 Forest is attempting to collect additional funds through its Third Party Complaints, 6 7 $ The PACA Trust Account, as defined in the PACA Claims Order, shall not be subject to execution, levy or attachment by any creditor without order of this Court. G. Every 90 days from the Court’s Order granting the parties’ Stipulation, the professionals shall file a Status Update, stating if they have received additional funds during that 90-day period, whether they anticipate additional distributions, and how long the Court should keep this case open. H. Nothing in this Stipulation or this Order is or shall be deemed to be a waiver or release of the Creditors’ PACA trust rights or the Creditors’ ability to enforce those PACA trust rights against any person or entity not a party to this 26 27 28 Judgment Page 12 of 13 1 Stipulation who may be liable to the Creditors for breach of the PACA trust, all such 2 rights being expressly reserved. 3 4 5 IT IS SO ORDERED. DATED: October 12,, 2021 6 7 _________________________________ HONORABLE JESUS G. BERNAL UNITED STATES DISTRICT COURT 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Judgment Page 13 of 13
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