Delta objects to all non-contractual interest claims in excess of 6% pursuant to judge's decision in Baker Packing Co. V. Produce Fresh, Inc., 2011 WL 1327627 (w.d.tx, April 6, 2011) Attorney's Fees claims are not to be presented at this time; therefore, Delta objects to all such fees.
Delta objects to all non-contractual interest claims in excess of 6% pursuant to judge's decision in Baker Packing Co. V. Produce Fresh, Inc., 2011 WL 1327627 (w.d.tx, April 6, 2011) Attorney's Fees claims are not to be presented at this time; therefore, Delta objects to all such fees.
Delta objects to all non-contractual interest claims in excess of 6% pursuant to judge's decision in Baker Packing Co. V. Produce Fresh, Inc., 2011 WL 1327627 (w.d.tx, April 6, 2011) Attorney's Fees claims are not to be presented at this time; therefore, Delta objects to all such fees.
SPECIAL PACA COUNSELS OBJECTIONS TO CLAIMS ____________________________________________________________________________
The undersigned, Special PACA counsel for Debtor Delta Produce, L.P. (Debtor), submits the following objections under the Perishable Agricultural Commodities Act (PACA), 7 U.S.C. 499a, et seq., to the trust claims filed by Debtors produce creditors pursuant to the February 29, 2011 Amended Order Establishing a Deadline to File PACA Trust Claims, and for Procedures to Resolve Those Claims (Claims Order). GENERAL OBJECTIONS Non-Contractual Interest. Delta objects to all non-contractual interest claims in excess of 6% pursuant to Judge Rodriguezs decision in Baker Packing Co. v. Produce Fresh, Inc., 2011 WL 1327627 (W.D. TX, April 6, 2011). Attorneys Fees. Pursuant to the Claim Order paragraph 15, attorneys fee claims are not to be presented at this time; therefore, Delta objects to all such fees, reserving any further objections to the substance of such claims to such time that attorneys fees applications are presented.
1 Debtors are the following entities: Delta Produce, L.P. Case No. 12-50073-LMC, Superior Tomato-Avocado, Ltd. Case No. 12-50074-LMC, Atled, Ltd. Case No. 12-50075-LMC and Staci Properties, Ltd. Case No. 12- 50110-LMC. 12-50073-lmc Doc#159 Filed 03/22/12 Entered 03/22/12 15:44:57 Main Document Pg 1 of 6 2
SPECIFIC OBJECTIONS Andrew and Williamson Sales Co. Delta claims offsets as follows for invoices owed to Delta: Invoice #237986 For $2,384.02 Invoice #237908 For $1,621.50 Invoice #238249 For $763.75 Invoice #238402 For $4,015.00 Invoice #238505 For $200.00 Invoice #238628 For $3,760.00 $12,744.55
Based on these objections, Delta objects to interest claims of $139.74, due to the reduction of the claim due to offset. Dayka & Hacket LLC. Delta objects to this claim in its entirety due to lack of a bill of lading or proof of delivery in its records. Bernardi & Associates, Inc. Delta objects to Bernardis Invoices 128090, 1283322, 128326, 128332, 128334, 128336, 128357, 128365, 128414, 128161, 128470, 128497, 128498, 128499, 128522, 128527, 128527(1), 128527(2), 128528, 128543, 128552, 128553, 128558, 128566, 128567, 128572, 128574, 128576, 128587, 128576, 128600 for a total of $9,973.62 in brokerage charges ineligible under the PACA trust. See, Onions, Etc. Inc. v. Z & S Fresh Inc., 2010 WL 2598392 (E.D. Ca. June 25, 2010). Del Campo Supreme, Inc., Delta objects to invoice 39819 in the amount $255 an agreed price adjustment not reflected in the claim. Del Campo has corrected its proof of claim and Delta does not interpose an objection as to the use of an improper claim form. Dimare Enterprises, Inc. Delta objects to the following ineligible charges because they are not claims for produce eligible under the PACA trust: 112018 handling $1,560.00 112035 handling $3,120.00 12-50073-lmc Doc#159 Filed 03/22/12 Entered 03/22/12 15:44:57 Main Document Pg 2 of 6 3
After exclusion of these charges, interest is reduced by $154.60. Eco Farms Sales, Inc. The legend In the event of any actions or proceeding is commenced to enforce the terms of this transaction or our PACA trust right, buyer agrees to pay all costs of enforcement, including all attorneys fees, together with any costs and expenses, as additional sums owed in connection with this transaction is not sufficient to preserve PACA trust rights. Delta therefore objects to the entire claim as not being properly qualified under the PACA trust under 7 U.S.C. 499e(c)(3) and 7 CFR 46.46(f) Five Brothers Jalisco Produce Co., Inc. Interest in excess of 6% is subject to general objection above in the amount of $321.90. Delta objects to claims for attorneys fees as noted in the general objection. Franks Distributing of Produce, LLC. Interest in excess of 6% is subject to the general objection above in the amount of $691.25. Fresh Pac International, Inc. It appears duplicate claims were filed. Delta objects to claims for attorneys fees as noted in the general objection. Interest is reduced to 6% based on the general objection, which reduces to $205.92 interest. Harllee Packing, Inc. Delta objects to handling environmental charges; said charges between $1,560.00 to $3,120.00 on all invoices, as being ineligible under the PACA trust. These charges total $35,880.00, and reduce interest charges by $589.39. Harvest Crown Co., Inc. Delta objects to claims for attorneys fees as noted in the general objection. 12-50073-lmc Doc#159 Filed 03/22/12 Entered 03/22/12 15:44:57 Main Document Pg 3 of 6 4
Henry Avocado Corp. Delta objects to claims for attorneys fees as noted in the general objection. Henry Avocado is subject of offsets for invoices owed by Henry Avocado to Delta amounting to $87,474.25, leaving Delta till owed $32,326.78 I Kunik Co., Inc. Claim includes $148.50 in pallets and records ineligible under PACA and a $4.49 reduction interest. J-C Distributing, Inc. Delta objects to claims for attorneys fees as noted in the general objection. JFJ Company Claim is ineligible under the PACA trust; the claim is not a produce claim. Juniper Tomato Growers, Inc. Claim includes ineligible pallets not qualified for protection under the PACA trust: Invoice #33373 For $3,182.00 Invoice #33374 For $3,003.00 Invoice #33375 For $2,964.00 Invoice #33377 For $3,137.55 Invoice #33378 For $3,120.00 Invoice #33424 For $3,120.00 Invoice #33425 For $3,120.00 Invoice #33427 For $3,120.00 Invoice #33428 For $3,120.00 Invoice #33429 For $3,123.60 Invoice #33430 For $3,120.00 TOTAL $40,303.85
Deltas records reflect a price cut by $800 to $2,400 on Invoice #33482. Kingdom Fresh Produce, Inc. This claim is subject to an offset of $3,545.00 owed to Delta for services and a claim of $3,696.00 on Invoice #10524 leaving a claim of $62,327.00 with interest at 6% based upon the general objection for $623.27, instead of $728.10. London Fruit, Inc. Delta objects the entire claim for failure to attach proof of delivery to the claim form. 12-50073-lmc Doc#159 Filed 03/22/12 Entered 03/22/12 15:44:57 Main Document Pg 4 of 6 5
Mecca Farms, Inc. Deltas records reflect a price reduction of $644.00 on Invoice #4113 and $800.00 on Invoice #4115, with a resulting reduction of interest of $36.35. Mission Produce, Inc. Deltas records reflect an agreed price reduction of $200.00 on Invoice #475297 and do not reflect any receipt of goods on Invoice #479240. Delta objects to claims for attorneys fees as noted in the general objection. Muller Trading Co., Inc. Neither the proof of claim nor Deltas records reflect delivery and acceptance of the product. Delta objects to claims for attorneys fees as noted in the general objection. Pacific International Vegetable Marketing, Inc. This file is shown in Deltas records as Dynasty Farms. Delta objects to claims for attorneys fees as noted in the general objection. Prime Time Sales LLC Recorder charge of $23.50 is not PACA eligible. Royal Flavor, LLC Delta objects to Invoice #23429 as having quality problems reducing principal by $9,543.50 and $423.57 in interest charges. Delta objects to claims for attorneys fees as noted in the general objection. Wilson Produce, LLC Delta objects to claims for attorneys fees as noted in the general objection. WHEREFORE, Debtor, through Special PACA Counsel respectfully requests the Court to enter an order denying the above claims to the extent stated, and granting such other relief as may be appropriate under the circumstances DATED: This 22 nd day of March, 2012. Respectfully submitted,
STOKES LAW OFFICE LLP 3330 Oakwell Court, Suite 225 San Antonio, TX 78218 Telephone (210) 804-0011 12-50073-lmc Doc#159 Filed 03/22/12 Entered 03/22/12 15:44:57 Main Document Pg 5 of 6 6
Facsimile (210) 822-2595
By: /s/ Craig A. Stokes______________ Craig A. Stokes SBN 19267700 cstokes@stokeslawoffice.com
Attorneys for Delta Produce, L.P.
CERTIFICATE OF SERVICE
I hereby certify that on the 22 nd day of March, 2012, I electronically filed the foregoing Notice of Appearance and Request for Service of Papers with the Clerk of the Court using the CM/ ECF system which will send a notice of electronic filing to all parties of record. I further certify that a copy of the foregoing pleading was mailed via CM-RRR to all of Deltas produce creditors, listed in the attached Exhibit A.
/s/ Craig A. Stokes_____________________ Craig A. Stokes
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1 SUMMARY OF REVIEW OF PACA CLAIMS- DELTA I I Date: March 20, 2012 I PACACiaim Objections I Claimant Name Filing Date Principal lnt Interest Attorney's Total Claim Supporting lnelgible Offset Claims Did not Objection to Objection to Objection to Total Net Claim Rate Fees Docs Missing Goods Preserve Amt Atty Fees Interest Objections Trust Rights Claimed (no calculation statutory Claim no. claim) 48 Andrew & Williamson Sales Co. 1-Mar-12 26,954.00 6% 292.08 27,246.08 (12,744.55) (139.75) (12,884.30) 14,361.78 54 Bernardi & Associates, Inc. 1-Mar-12 119,772.00 18% 4,887.59 2,587.09 127,246.68 (9,973.62) (2,587.09) (391.04) (12,951.75) 114,294.93 68 California Artichoke & Veg Growers C 1-Mar-12 480.00 18% 105.34 11.50 596.84 (596.84) (596.84) 39 CAPCO 21-Feb-12 1,444.22 10% 1,444.22 1,444.22 44 Dayka & Hacket LLC 25-Jan-12 824.00 0% 824.00 (824.00) (824.00) 9 Del Campo Supreme 24-Jan-12 52,427.90 52,427.90 (52,427.90) (52,427.90) 55 DiMare Enterprises, Inc. 1-Mar-12 48,064.00 6% 678.04 I 1,330.50 50,072.54 (10,959.00) (1,330.50) (154.60) (12,444.10) 37,628.44 71 Divine Ripe LLC 2-Mar-12 48,693.07 0% - 48,693.07 48,693.07 SO Eco Farms Sales, inc. 1-Mar-12 24,800.00 18% 1,015.10 2,130.00 27,945.10 (27,945.10) (27,945.10) 47 Five Brothers Jalisco Produce Co., Inc. 27-Feb-12 32,052.00 10% 804.74 32,856.74 (321.90) (321.90) 32,534.84 56 Frank's Distrib of Produce, LLC 1-Mar-12 87,386.50 10% 1,728.12 1,887.35 91,001.97 I (1,887.35) (691.25) (2,578.60) 88,423.37 40 Fresh Pac lnt'l, Inc. 12-Feb-12 20,592.00 2% 308.88 20,900.88 (20,900.88) (20,900.88) 57 Fresh Pac Jnt'l, Inc. 1-Mar-12 20,592.00 6% 142.17 445.15 21,179.32 (445.15) (445.15) 20,734.17 51 Gargiulo, Inc. 1-Mar-12 9,520.00 18% 478.87 1,000.00 10,998.87 (1,000.00) (1,000.00) 9,998.87 67 Greenhouse Produce Co. LLC 2-Mar-12 17,142.75 17,142.75 17,142.75 32 Harllee Packing, Inc. 13-Feb-12 108,924.00 18% 1,789.00 I 110,713.00 (35,880.00) (589.39) (36,469.39) 74,243.61 58 Harvest Crown Co., Inc. 1-Mar-12 145,048.10 18% 5,949.46 3,134.08 154,131.64 (3,134.08) (5,949.46) (9,083.54) 145,048.10 52 Henry Avocado Corp. 1-Mar-12 49,600.00 118% 1,247.47 4,300.00 55,147.47 (87,474.25) (87,474.25) (32,326.78) 46 I Kunik Co, Inc. 27-Feb-12 17,403.50 18% 5,376.02 22,779.52 (148.50) I (4.49) (152.99) 22,626.53 59 J-C Distributing, Inc. 1-Mar-12 97,914.40 18% 3,279.34 2,115.67 103,309.41 (2,115.67) (2,115.67) 101,193.74 70 JFJ Company 1-Mar-12 7,776.17 0% 7,776.17 (7,776.17) (7,776.17) 68 Juniper Tomato Growers, Inc. 2-Mar-12 155,989.75 155,989.75 (40,303.85) (800.00) (41,103.85) 114,885.90 43 Kingdom Fresh Produce, Inc. 27-Feb-12 69,568.00 10% 788.10 70,356.10 (3,545.00) (3,696.00) (104.83) (7,345.83) 63,010.27 69 london Fruit 2-Mar-12 29,460.00 18% 1,264.92 30,724.92 (20.00) (1,264.92) (1,284.92) 29,440.00 ?? Malena Produce, Inc. 30-Jan-12 834.00 0% 834.00 (834.00) (834.00) 49 Mecca Farms, Inc. 1-Mar-12 15,344.00 18% 386.31 15,730.31 (4,115.00) (36.35) (4,151.35) 11,576.96 60 Mission Produce, Inc. 1-Mar-12 84,800.00 18% 3,383.88 1,831.49 90,015.37 (13,276.46) (200.00) (1,831.49) (15,307.95) 74,707.42 138 Muller Trading Co., Inc. 2-Mar-12 24,573.50 18% 368.00 14,141.00 39,082.50 (24,941.50) (14,141.00) (39,082.50) 62 Pacific lnt'l Veg Mktg, Inc. d/b/a Pacifi 1-Mar-12 2,880.00 18% 133.51 62.42 3,075.93 3,075.93 63 Prime Time Sales llC 1-Mar-12 26,335.50 18% 1,194.84 568.34 28,098.68 (23.50) (23.50) 28,075.18 54 Royal Flavor, LLC 1-Mar-12 78,954.84 18% 3,476.42 1,705.02 84,136.28 (9,543.50) (1,705.02) (423.50) (11,672.02) 72,464.26 72 Superior Tomato-Avocado Ltd n/a 15,303.75 0% 15,303.75 15,303.75 66 The Pumpkin Patch LLP 1-Mar-12 163,150.00 163,150.00 (163,150.00) (163,150.00) 26 Tijerina & Son's, llC 10-Feb-12 18,437.50 0% 18,437.50 18,437.50 73 TripleH Produce, LLC 2-Mar-12 5,278.00 24% 5,278.00 5,278.00 45 Walsma and lyons, Inc. 27-Feb-12 621.60 0% 621.60 621.60 35 West Coast Tomato, llC 10-Feb-12 11,059.00 18% 207.24 11,266.24 - 11,266.24 65 Wilson Produce, llC 1-Mar-12 25,211.90 18% 815.72 583.13 26,610.75 (583.13) (583.13) 26,027.62 1,665,211.95 40,101.16 37,832.74 I 1,743,145.85 I (572,931.58) 1,170,214.27 12-50073-lmc Doc#159-2 Filed 03/22/12 Entered 03/22/12 15:44:57 Exhibit A - Delta Creditors Master List Pg 1 of 2 \ndrew & Williamson Sales Co. 1940 Marconi Drive )an Diego, CA 92154-7270 K. Hackett )ayka & Hackett, LLC f2874 Rd. 64 CA 93654-9010 )iMare Enterprises, Inc. :/o Bart M. Botta & Janowsky, LLP f 100 Newport Place Drive, Suite 700 Jewport Beach, CA 92660 :rank's Distributing of Produce, LLC :/o Bart M. Botta & Janowsky, LLP f 1 00 Newport Place Drive, Suite 700 Jewport Beach, CA 92660 lohn P. Harllee, IV -larllee Packing, Inc. Highway 301 North )almetto, FL 34221 -lenry Avocado Corporation :/o Meuers Law Firm, P.L. i395 Park Central Court Japles, FL 34109 1-C Distributing, Inc. :/o Diana M. Geis & Stahl '00 North St. Mary's Street, Suite 1930 )an Antonio, TX 78205 \ingdom Fresh Produce, Inc. :/o Kevin P. Kelley \eaton & Associates, P.C. 278 W Northwest Highway, Suite 903 )alatine, IL 60067 llission Produce, Inc. :/o Diana M. Geis ;uri & Stahl '00 North St. Mary's Street, Suite 1930 )an Antonio, TX 78205 )acific International Veg Mktg, Inc. :/o Diana M. Geis ;uri & Stahl '00 North St. Mary's Street, Suite 1930 )an Antonio, TX 78205 Bernardi & Associates c/o Diana M. Geis Curl & Stahl 700 North St. Mary's Street, Suite 1930 San Antonio, TX 78205 Del Campo Supreme, Inc. 672 W. Frontage Rd. Nogales, AZ 85621-9633 Eco Farms Sales, Inc. c/o Meuers Law Firm, P.L. 5395 Park Central Court Naples, FL 34109 Frank's Distributing of Produce, LLC c/o Diana M. Geis Curl & Stahl 700 North St. Mary's Street, Suite 1930 San Antonio, TX 78205 Harvest Crown Co., Inc. c/o Bart M. Botta Rynn & Janowsky, LLP 4100 Newport Place Drive, Suite 700 Newport Beach, CA 92660 I Kunik Company, Inc. c/o Kevin P. Kelley Keaton & Associates, P.C. 1278 W Northwest Highway, Suite 903 Palatine, IL 60067 JFJ Company Mr. Jose Francisco Jimenez 127 N San Gabriel San Antonio, TX 78237 London Fruit, Inc. 9010 S. Cage Blvd. Pharr, TX 78577 Mission Produce, Inc. c/o Bart M. Botta Rynn & Janowsky, LLP 41 00 Newport Place Drive, Suite 700 Newport Beach, CA 92660 Pacific International Veg Mktg, Inc. c/o Bart M. Botta Rynn & Janowsky, LLP 4100 Newport Place Drive, Suite 700 Newport Beach, CA 92660 EXHIBIT A Bernardi & Associates c/o Bart M. Botta Rynn & Janowsky, LLP 41 00 Newport Place Drive, Suite 700 Newport Beach, CA 92660 DiMare Enterprises, Inc. c/o Diana M. Geis Curl & Stahl 700 North St. Mary's Street, Suite 1930 San Antonio, TX 78205 Five Brothers Jalisco Produce Co., Inc. c/o Kevin P. Kelley Keaton & Associates, P.C. 1278 W Northwest Highway, Suite 903 Palatine, IL 60067 Ms. Kristine Hale Fresh Pac International P. 0. Box 4601 Oceanside, CA 92052-4601 Harvest Crown Co., Inc. c/o Diana M. Geis Curl & Stahl 700 North St. Mary's Street, Suite 1930 San Antonio, TX 78205 J-C Distributing, Inc. c/o Bart M. Botta Rynn & Janowsky, LLP 41 00 Newport Place Drive, Suite 700 Newport Beach, CA 92660 Juniper Tomato Growers, Inc. Mr. Richie Boice PO Box 38, Greensboro Quincy, FL 32330-0038 Mecca Farms, Inc. Mr. Mark Mecca PO Box 541779 Lakeworth, FL 33454-1779 Muller Trading Company, Inc. Eric A. Muller 545 North Milwaukee Avenue, Suite 201 Libertyville, IL 60048 Prime Time Sales, LLC c/o Diana M. Geis Curl & Stahl 700 North St. Mary's Street, Suite 1930 San Antonio, TX 78205 12-50073-lmc Doc#159-2 Filed 03/22/12 Entered 03/22/12 15:44:57 Exhibit A - Delta Creditors Master List Pg 2 of 2 Prime Time Sales, LLC c/o Bart M. Botta Rynn & Janowsky, LLP 4100 Newport Place Drive, Suite 700 Newport Beach, CA 92660 Wilson Produce, LLC c/o Bart M. Botta Rynn & Janowsky, LLP 4100 Newport Place Drive, Suite 700 Newport Beach, CA 92660 Royal Flavor LLC c/o Bart M. Botta Rynn & Janowsky, LLP 4100 Newport Place Drive, Suite 700 Newport Beach, CA 92660 Wilson Produce, LLC c/o Diana M. Geis Curl & Stahl 700 North St. Mary's Street. Suite 1930 San Antonio, TX 78205 #It# Royal Flavor LLC c/o Diana M. Geis Curl & Stahl 700 North St. Mary's Street, Suite 1930 San Antonio, TX 78205