WASHINGTON, May 24, 2011 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
- 3 J’s Produce Inc., operating out of Los Angeles, Calif., for failing to pay a $23,100.21 award in favor of a California seller. As of the issuance date of the reparation order, Eduardo Marquez was listed as the officer, director, and major stockholder of the company.
- El Arbolito Produce LLC, operating out of Orange, Calif., for failing to pay a $5,625.00 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Adan Murillo Cortez was listed as the member of the company.
- First Call Limited Inc., operating out of Leavenworth, Wash., for failing to pay a $19,337.50 award in favor of a Washington seller. As of the issuance date of the reparation order, Mark E. Kane was listed as the officer, director, and major stockholder of the company.
- Jesus Cabanillas, d/b/a Mi Familia Produce, operating out of Dixon, Calif., for failing to pay a $25,036.00 award in favor of a California seller. As of the issuance date of the reparation order, Jesus A. Cabanillas was listed as the sole proprietor of the company.
PACA provides for an administrative forum to handle disputes over produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. The USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.
The Agricultural Marketing Service (AMS), PACA Branch, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.
In fiscal year 2010, USDA resolved approximately 2,000 claims filed under the PACA involving $30 million in their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.
For more information, contact John Koller, Director, Dispute Resolution Section at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.
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