WASHINGTON, Nov. 1, 2010 – The U.S. Department of Agriculture (USDA) has imposed sanctions on five produce businesses for failing 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:
- Harvin Foods Inc., operating out of Wilmington, Del., for failing to pay a $147,791.57 award in favor of an Arizona seller. The sole responsibly connected officer, director, and stockholder is Grady K. Harvin.
- Lil Lamb Produce and Seafood Inc., operating out of Millersville, Md., for failing to pay a $6,716.25 award in favor of a New York seller. The sole responsibly connected officer, director, and stockholder is Jason D. Lambright.
- Medrano & Sons Produce Inc., operating out of Dallas, Texas, for failing to pay a $7,943.50 award in favor of a California seller. The sole responsibly connected officer, director, and stockholder is Juventino J. Medrano.
- Sun Grown Produce Importers, operating out of San Juan, Texas, for failing to pay a $28,160 award in favor of a Texas seller. The responsibly connected partners are Carlos Osuna and Heriberto Osuna.
- Ron Funkhouser Sales Ltd., operating out of Martinsburg, W.Va., for failing to pay a $161,350 award in favor of a Georgia seller. The responsibly connected officers, directors, and major stockholders are Ronald R. Funkhouser and Joann P. Funkhouser.
PACA provides 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. This is just one more way the USDA continues to support the fruit and vegetable industry.
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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