What is the PACA?

The PACA is a federal statute, the Perishable Agricultural Commodities Act. As explained by the United States Department of Agriculture “PACA protects businesses dealing in fresh and frozen fruits and vegetables by establishing and enforcing a code of fair business practices and by helping companies resolve business disputes”.

The law contains trust provisions which put sellers of fresh and frozen fruits and vegetables in a priority status in the event their buyers become insolvent or file for bankruptcy protection. Moreover, pursuant to the PACA the USDA makes available administrative procedures to assist produce suppliers in collecting debts from their buyers. The PACA also provides for jurisdiction in the federal courts for lawsuits for the collection of such debts. Moreover, because of the trust provisions of the PACA, federal courts are authorized to fashion equitable remedies to prevent dissipation of the trust assets. Such remedies may include injunctions to prevent debtors from spending funds or selling other assets and/or the institution of specific claims procedures which allow creditors to present their claims to the court in an orderly and relatively simple manner, rather than every creditor filing a separate lawsuit against the debtor.

I have experience in representing both PACA creditors and PACA debtors in both administrative proceedings before the U.S. Department of Agriculture and in court proceedings in United States District Courts. In fact, I argued an appeal in a PACA case before the United States Court of Appeals for the Third Circuit. Several of the PACA cases in which I have represented parties are described in the following published case reports:

Botman International vs. International Produce Imports
Bear Mountain Orchards vs. Mich Kim

If you have any questions about the PACA, please telephone me at 814-283-5788

Leave a Reply

Your email address will not be published. Required fields are marked *