WASHINGTON, Aug. 1, 2011 – The U.S. Department of Agriculture has imposed sanctions on One Brothers Produce LLC, operating out of Miami, Fla., for failing to pay a $48,154.50 reparation award in favor of a Texas seller. As of the issuance date of the reparation order, Victor Espinoza was listed as a member of the business.
The Perishable Agricultural Commodities Act (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. 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 e-mail at disputeresolutionsection@ams.usda.gov regarding this matter.
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