The opinion of the court was delivered by: Morrison C. England, JR United States District Judge
AMENDED ORDER ESTABLISHING PACA TRUST AND DISBURSEMENT AUTHORIZATION PROCEDURE
Upon review of the Stipulation filed by JC Produce, LLC ("JC Produce") and Plaintiffs Taylor Farms California, Inc., et al., Intervening Plaintiff LJ Distributors, Inc., and Monterey Mushrooms, Inc.; Henry Avocado Corporation; Maui Fresh International, LLC; Frieda's Inc.; and Amber Foods, Inc. (hereinafter collectively "Plaintiffs") to amend the prior order of the Court to Establish PACA Trust Claims Procedure and Disbursement Authorization Procedures and good cause appearing;
IT IS ORDERED THAT the prior order of the Court, Order Establishing PACA Trust and Disbursement Authorization Procedure, filed January 27, 2009 (Docket No. 21) is amended and replaced its entirety by this Amended Order.
IT IS FURTHER ORDERED THAT JC Produce shall deposit all payments from JC Produce's Accounts Receivable into the Bank of America PACA Trust Account. JC Produce may continue to receive payments by electronic transfer directly into its account at Bank of the West, and shall be further ordered to transfer any such payments to the Bank of America PACA Trust Account as soon as any hold placed on the deposited PACA Payment is released by Bank of the West.
IT IS FURTHER ORDERED THAT JC Produce shall sent by United States Mail, First Class Postage Prepaid, no later than January 28, 2009, the following to the potential PACA Claimants listed on the PACA Trust Claims List, attached to the Stipulation as Exhibit "A", and any other person requesting such a list or who notifies JC Produce in writing that such person is asserting a Claim to any monies in the PACA Trust.
2. The PACA Trust Claims List;
3. The PACA Claim Amount Dispute Form, which is attached as Exhibit "F" to the Stipulation; and
4. The Notice, which is attached as Exhibit "G" to the Stipulation.
IT IS FURTHER ORDERED THAT, in the event that a PACA Trust Claimant disputes the sums that JC Produce has determined is protected by the PACA Trust and should be allowed, as stated on the PACA Trust Claims List, it must deliver -- on or before 5:00 p.m. on February 9, 2009 -- a completed PACA Claim Amount Dispute Form to JC Produce's attorneys, provided in the Notice (Exhibit "G" to the Stipulation). Upon receipt of a timely delivered PACA Claim Dispute Form, the dispute shall be handled as follows:
1. JC Produce's agent shall provide a copy of the PACA Claim Amount Dispute Form to counsel of record for the Plaintiffs (and to other interested parties, if so requested);
2. If the amount of the dispute is not more than the greater of 115% of the amount listed on the PACA Trust Claims List or $1,000, JC Produce may attempt to resolve the difference with the disputing PACA Trust Claimant, and if so resolved JC Produce may amend the amount on the PACA Trust Claims List and make the disbursements from the PACA Trust based upon the amended amount, without further order of the Court.
3. If the amount in dispute is more than 115% of the amount stated by JC Produce on the PACA Trust Claims List and in excess of $1,000, JC Produce may attempt to resolve the dispute and reduce such amount in dispute so that it may be resolved as provided in the immediately preceding subparagraph "2" above of this Order. If the disputed amount cannot be resolved as provided in the immediately preceding subparagraph 2 above, JC Produce shall use the amount asserted as owed by the disputing PACA Claimant as the amount for purposes of computing the pro rata disbursement sum, shall pay a pro-rata distribution on the undisputed sum, and shall retain the disputed pro rata disbursement share for the disputing PACA Claimant pending further order of this court.
IT IS FURTHER ORDERED THAT for any PACA Claims which are the subject of a timely delivered PACA Claim Amount Dispute Form and are not resolved as provided above, JC Produce shall file either a separate Motion for each such unresolved disputed claim to establish the dispute resolution proceeding for such PACA Claim or a Stipulation between the PACA Claimant and JC Produce for court approval of the resolution thereof. If JC Produce files a Motion, it shall summarize the issues in dispute, the attempts to resolve the dispute, the anticipated evidence and witnesses to resolve the dispute, and whether it believes that the ...