Automated Summary
Key Facts
This case involves a temporary restraining order granted by the United States District Court for the Eastern District of Louisiana in a matter concerning alleged violations of the Perishable Agricultural Commodities Act (PACA). The plaintiff, Lange Fresh Sales, Inc., alleges that it sold perishable agricultural commodities to Louisiana Fresh Fruits and Vegetables, LLC ('LFFV') and Louisiana Fresh Produce, LLC ('LFP') between October 28, 2025, and January 5, 2026, with an outstanding balance of $438,619.95. The court found that Lange has shown a likelihood of success on its PACA trust claims and breach-of-contract claims, and granted a temporary restraining order preventing the defendants from dissipating trust assets and requiring them to deposit $438,619.95 into the court's registry. The court deferred ruling on the preliminary injunction until the defendants had an opportunity to respond.
Transaction Type
Sale of perishable agricultural commodities
Issues
- Lange provided evidence of LFP's financial difficulties, including communications showing LFP was behind on payments and could not afford to pay both employees and invoices. This demonstrated a substantial threat of irreparable injury from dissipation of PACA trust assets.
- The court found that the balance of harms favored Lange because the restraining order only required defendants to maintain assets they were statutorily required to hold in trust, which did not threaten harm to defendants. Additionally, enforcing the PACA trust was found to be in the public interest, as it protected sellers' rights and ensured prompt payment for perishable commodities.
- Lange provided evidence of a valid contract between Lange and LFP, showing LFP failed to perform the obligation to pay for produce, resulting in damages to Lange as a result of the breach.
- Lange successfully demonstrated all six elements required to establish a PACA trust: (1) perishable agricultural commodities were sold, (2) the purchaser was a commission merchant/dealer/broker, (3) transactions occurred in interstate commerce, (4) full payment was not received, (5) written notice was provided, and (6) payment terms complied with PACA limits.
Holdings
The court granted Lange's application for a temporary restraining order, enjoining the defendants from dissipating PACA trust assets and requiring them to deposit $438,619.95 into the court's registry. The court deferred ruling on the preliminary injunction until defendants have had an opportunity to respond.
Remedies
The court granted a temporary restraining order requiring defendants to deposit $438,619.95 into the court registry within three business days and prohibiting any dissipation of PACA trust assets. The order also mandates banking institutions to turn over relevant documents and remains effective for 14 days.
Contract Value
438619.95
Monetary Damages
438619.95
Legal Principles
- Applying PACA trust provisions, the court found that Lange has shown a likelihood of success on the merits of its claim that the defendants must hold trust assets for unpaid sellers of perishable agricultural commodities.
- The court granted a temporary restraining order under Federal Rule of Civil Procedure 65, finding that Lange has shown a substantial likelihood of success on the merits, a substantial threat of irreparable injury, and that the balance of harms and public interest favor granting the order.
Precedent Name
- PCI Transp., Inc. v. Fort Worth & W. R.R. Co.
- Sunny Produce & Brokerage, LLC v. Sasita Produce, LLC
- CF Trade, LLC v. Duse Exports, LLC
- Matter of Delta Produce, L.P.
- Rio Vista Ventures, LLC v. Valvilla Produce, LLC
Cited Statute
Perishable Agricultural Commodities Act
Judge Name
Barry W. Ashe
Passage Text
- Lange has provided sufficient evidence to show its ability to satisfy each element.
- In this case, communications between Bertrand and Romaguera indicate that LFP was routinely behind on paying its invoices and imply that LFP could not afford to pay both its employees and its invoice to Lange. Further, Bertrand's declaration contains evidence that LFP is experiencing financial difficulties. Therefore, Lange has shown likely or threatened dissipation of the alleged PACA trust and, thus, a substantial threat of irreparable injury.
- IT IS ORDERED that defendants Louisiana Fresh Fruits and Vegetables, LLC, Louisiana Fresh Produce, LLC, and QPC Property, LLC ('Defendants') are enjoined from taking any action whatsoever which causes or has the effect of causing the dissipation, or which otherwise dissipates, Lange Fresh Sales, Inc.'s beneficial interests in the PACA trust. Toward that end, Defendants shall deposit into the Registry of this Court the sum of $438,619.95, which represents Lange Fresh Sales, Inc.'s beneficial interests in the PACA trust.
Damages / Relief Type
Injunction requiring defendants to deposit $438,619.95 into court registry to preserve PACA trust assets.