Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_10-cv-01813/USCOURTS-azd-2_10-cv-01813-3/pdf.json

Nature of Suit Code: 891
Nature of Suit: Agricultural Acts
Cause of Action: 07:499 Agricultural Commodities Act

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

John Harmon, dba Harmon Company

Produce, 

Plaintiff, 

vs.

RAR Enterprises Inc., dba Ramirez

Brothers, 

Defendant. 

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CV 10-01813-PHX-FJM

ORDER

The court has before it plaintiff’s motion for judgment (doc. 88). Defendant did not

respond, and the time for responding has expired.

This action arises from plaintiff’s delivery of watermelons to defendant in 2009.

Plaintiff sent invoices to defendants totaling $79,929. Defendant sent two checks for

payment, which were returned to plaintiff for insufficient funds. The United States

Department of Agriculture entered a default order in favor of plaintiff under the Perishable

Agricultural Commodities Act ("PACA"), 7 U.S.C. § 499, ordering defendant to pay plaintiff

$79,929 as reparation with interest, plus the $500 complaint filing fee. Def.'s Statement of

Facts, ex. H (doc. 72). Plaintiff filed this action seeking enforcement of the PACA award as

well as damages under A.R.S. § 12-671 for insufficient funds check. Our order dated

November 30, 2011 granted summary judgment in favor of plaintiff on the breach of contract

Case 2:10-cv-01813-FJM Document 91 Filed 03/23/12 Page 1 of 3
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Raul and Genoveva Ramirez filed for bankruptcy on November 28, 2011. We

dismissed the claims against them without prejudice on March 6, 2012 (doc. 90).

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claim (count one) and the PACA award claim (count three) (doc. 81). We denied summary

judgment to plaintiff on count two, insufficient funds check, holding that issues of fact

remained as to whether the president of RAR, Raul Ramirez, intended to defraud plaintiff.1

Plaintiff moves for entry of judgment on counts one and three and requests that we

dismiss count two without prejudice. As a part of the judgment, plaintiff asks that we enter

an order establishing that some of defendant's proceeds and commodities have been and are

held in trust for plaintiff's benefit until full payment is tendered. Compl. at 6. Such an order

is unnecessary, however, because "[t]he trust automatically arises in favor of a perishable

agricultural commodities seller upon delivery of perishable agricultural commodities and is

for the benefit of all unpaid suppliers or sellers involved in the transaction until full payment

of the sums owing in connection with the transaction have been received.” Middle Mountain

Land & Produce Inc. v. Sound Commodities Inc., 307 F.3d 1220, 1224 (9th Cir. 2002).

Next, plaintiff asks for an award of ten percent interest per year beginning on July 17,

2009 in accordance with A.R.S. § 44-101. This is Arizona's statute of frauds provision and

is inapplicable to interest awarded on judgment. The PACA award, which plaintiff asked us

to enforce in this action, awarded plaintiff 0.41 percent interest per annum from August 1,

2009 until paid. 

Finally, plaintiff asks that we award attorney’s fees and costs. The procedure for

filing a bill of costs is outlined in LRCiv 54.1, and the procedure for filing a motion for

attorney’s fees is set forth in LRCiv 54.2. We will rule on a motion for attorney’s fees if and

when that motion is before us.

IT IS ORDERED GRANTING plaintiff’s motion for entry of judgment (doc. 88).

Accordingly, IT IS ORDERED granting judgment in favor of plaintiff and against RAR

Enterprises Inc., dba Ramirez Brothers under count one for breach of contract and count

three for PACA award in the amount of $79,929.00 with interest at the rate of 0.41 percent

Case 2:10-cv-01813-FJM Document 91 Filed 03/23/12 Page 2 of 3
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per annum from August 1, 2009 until paid, plus the amount of $500. IT IS FURTHER

ORDERED DISMISSING count two (insufficient funds check) against RAR Enterprises

Inc., dba Ramirez Brothers without prejudice.

The Clerk shall enter judgment.

DATED this 22nd day of March, 2012.

Case 2:10-cv-01813-FJM Document 91 Filed 03/23/12 Page 3 of 3