Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_09-cv-04983/USCOURTS-cand-5_09-cv-04983-6/pdf.json

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

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976483v2 

ORDER ESTABLISHING PACA CLAIMS PROCEDURE – Page 1 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

PATRICIA J. RYNN, State Bar No. 092048 

MARION I. QUESENBERY, State Bar No. 072308 

ELISE O’BRIEN, State Bar No. 245967 

RYNN & JANOWSKY, LLP 

4100 Newport Place Drive, Suite 700 

Newport Beach, CA 92660-2423 

Telephone: (949) 752-2911 

Facsimile: (949) 752-0953 

pat@rjlaw.com; marion@rjlaw.com; else@rjlaw.com

Attorneys for Plaintiffs 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

HIGASHI FARMS, INC., et al., 

Plaintiffs, 

vs. 

SALYER AMERICAN FRESH FOODS, et 

al., 

 Defendants. 

CASE NO. 09-CV-04983 JF 

 09-CV-04985 JF 

 09-CV-04207 JF 

[PROPOSED] ORDER ESTABLISHING 

SEGREGATED PACA ACCOUNT AND 

PACA TRUST CLAIMS PROCEDURE 

MAJOR FARMS, INC., 

Plaintiffs, 

vs. 

SALYER AMERICAN FRESH FOODS, et 

al., 

 Defendants. 

BRAGA RANCH, INC., 

Plaintiffs, 

vs. 

SALYER AMERICAN FRESH FOODS, et 

al., 

 Defendants. 

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(AS MODIFIED BY THE COURT)

**E-Filed 7/19/2010**

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 1 of 22
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ORDER ESTABLISHING PACA CLAIMS PROCEDURE – Page 2 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

 The matter having come before the Court on the Motion of Plaintiffs BRAGA RANCH, 

INC. (“Braga Ranch”), Case No. 09-CV-04207 JF (“Braga Ranch Matter”), HIGASHI FARMS, 

INC., K&S FARMS, LLC, M. NISHIMORI FARMS, INC., MANN PACKING CO., INC., 

MARTIN JEFFERSON & SONS, MERRILL FARMS, LLC, NEW STAR FRESH FOODS, 

LLC, TAYLOR FARMS CALIFORNIA, INC. (collectively “Higashi Farms”), Case No. 04-CV04983 JF (“Higashi Farms Matter”), MAJOR FARMS, INC. (“Major Farms”), Case No. 09-CV04985 JF (“Major Farms Matter”), and Intervening Plaintiffs G&H FARMS, LLC, JOHN S. 

TAMAGNI & SONS, INC., PEDRAZZI FARMS, INC., ED MEHL, and C&G FARMS, INC. 

(collectively “G&H Farms”) in Case No. 09-CV-04983 (all Plaintiffs and Intervening Plaintiffs 

are referred to collectively as “Plaintiffs”) to establish certain procedures for the management of 

claims which the Plaintiffs assert under the Perishable Agricultural Commodities Act, 7 U.S.C. 

§499a – 499q (“PACA”) (the “Motion”), and the Court having considered the oral arguments of 

the parties and the papers and pleadings submitted in support of and in opposition to the Motion, 

and having GRANTED in part Plaintiffs’ Motion as more specifically set forth in this Court’s 

March 8, 2010 Order [Docket No. 39], 

IT IS FURTHER ORDERED (the “Order”) that: 

I. ESTABLISHMENT OF PACA TRUST ACCOUNT: 

1. The Receiver, Steve Franson (“Receiver”) – who is the receiver appointed over 

Salyer American Fresh Foods (“Salyer American”), pursuant to a May 6, 2009 order in Case No. 

M98573, Superior Court of California, County of Monterey (the "Monterey County Superior 

Court Action") – shall continue to maintain a segregated PACA Trust Account at RaboBank (the 

“Account”), a federally insured financial institution, which he previously established, in an 

amount not less than $3,669,266.03 (the “PACA Funding Amount”). The PACA Funding 

Amount may be increased or decreased as described in paragraph 10 below. The Receiver shall 

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$2,235,222.76

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only upon noticed motion and the Court's ruling thereon.

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

be the sole signatory on said Account, and no checks or other withdrawals shall be issued or 

permitted without the Receiver’s signature or order of the Court (which shall include this Order). 

The Account shall not be subject to execution, levy or attachment without further order of this 

Court. 

2. The Court, as stipulated by the Receiver at the hearing held on the Motion, 

appoints the Receiver, Steve Franson, as the administrator of the Account, who shall be 

responsible for reporting account activity and effectuating withdrawals and distributions from the 

Account, as otherwise set forth herein, to the holders of valid PACA trust claims pursuant to the 

procedures set forth herein and in accordance with this Order. 

3. The Receiver shall ensure that the funds on deposit in the Account shall be used 

only to pay PACA trust claims ^ that are determined to be valid by order of this Court, and may 

not be withdrawn, except as otherwise provided for in this Order, for any other purposes without 

further order of this Court. 

4. The Receiver shall maintain the integrity and security of the financial records 

pertaining to Salyer American’s business, including accounts payable and accounts receivable. 

Within thirty (30) days of entry of this Order, the Receiver shall file a report of all deposits and 

withdrawals made from the Account from the date of the establishment of said Account to and 

including the date of entry of this Order (“Report”) with the Court, and serve same upon all 

counsel of record and all parties appearing in pro per in Case Nos. 09-CV-04983JF, 09-CV04985JF and 09-CV-04207JF pending in the above-entitled Court (collectively, the “PACA 

Actions”). Similar reports shall be filed and served as set forth above quarterly, commencing 

June 10, 2010, and thereafter on the tenth business day following each calendar quarter thereafter 

(September 10, 2010, December 10, 2010, etc). The Report shall include copies of all deposits 

and withdrawals into and from the Account by name of payor or payee and the amount of such 

Receivership fees and expenses shall be paid out of the Account, subject to

and Receivership fees and expenses

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September 10, 2010

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reallocation by the Court for good cause shown.

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 3 of 22
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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

deposit or withdrawal, and shall include copies of all Rabobank statements received since the 

previous Report. 

II. PACA CLAIMS PROCEDURE:

5. The efficient administration of justice requires that all persons claiming to be a 

PACA trust beneficiary of Salyer American be notified so that all such persons may intervene in 

the PACA Actions by filing a Complaint in Intervention in Case No. 09-CV-04983-JF as more 

specifically set forth in this Order. Further, to ensure finality to any ultimate distribution of 

PACA trust assets, if any, deposited in the Account, all persons or entities claiming to be PACA 

trust beneficiaries of Salyer American shall be required to intervene in Case No. 09-CV-04983 

prior to the Bar Date (as hereinafter defined) established pursuant to this Order, so that the class 

of PACA trust beneficiaries is defined, a method to determine the validity of their claims is 

established, all PACA trust beneficiaries of Salyer American share in any distribution of PACA 

trust assets in the Account, if any, and duplicate actions are avoided. All persons or entities 

having an unpaid invoice for the sale of perishable agricultural commodities to Salyer American, 

or who otherwise claim to be PACA trust beneficiaries of Salyer American, are hereby granted 

leave to intervene in the PACA Action to assert PACA claims without further notice or motion 

and, once having intervened, each such entity shall be bound by all orders entered in the PACA 

Actions including, without limitation, this Order. 

6. Within fourteen (14) calendar days from the date of filing this Order, the Receiver 

shall send a written notice (“the Notice”), in a form substantially similar to that attached hereto 

as “Exhibit 1,” to each and every unpaid supplier of perishable agricultural commodities as 

identified on Salyer American’s listing of accounts payable dated [TBI] (the “AP Listing”) (the 

“PACA Trust Claimant”). If any PACA Trust Claimant has appeared through its attorney of 

record in the PACA Actions, such Notice must be sent to such entity’s attorney of record. Such 

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 4 of 22
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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

written notice shall be accompanied by a copy of this Order and shall be sent via certified mail 

with return receipt requested, facsimile, or any equally verifiable means to establish delivery to 

the recipient. 

7. The Notice shall set forth the following schedule: 

Last Day to File and to Serve Complaint in Intervention 

and PACA Proof of Claims.................................................... May 28, 2010 

Last Day to File and to Serve Objections to 

any PACA Proof of Claim...................................................... June 28, 2010 

Last Day to Complete Discovery in Regard to PACA Trust Claims... July 28, 2010 

Last Day to File and to Serve Responses to Objections 

to PACA Proof of Claim ........................................................ July 28, 2010 

Last Day to File PACA Trust Chart....................................... August 6, 2010 

Last Day to File and Serve Objections to PACA Trust Chart........August 16, 2010 

Last Day to File and to Serve Motion to Determine Validity of 

PACA Claims................................................................. September 17, 2010 

8. On or before May 28, 2010 any PACA Trust Claimant including, without 

limitation, the Plaintiffs, shall file in Case No. 09-CV-04983-JF and serve on the attorneys listed 

in this paragraph, (1) a completed PACA proof of claim in a form substantially similar to that 

attached hereto as “Exhibit 2” (“PACA Proof of Claim”), together with all documents supporting 

its claim; and (2) a Complaint in Intervention which complies with Federal Rule of Civil 

Procedure 8(a); provided, however, the Plaintiffs shall not be required to file a Complaint in 

Intervention. Any corporation, partnership, and/or limited liability company that files a PACA 

Proof of Claim and Complaint in Intervention must file an appearance in Case No. 09-CV04983-JF through legal counsel. The attorneys to be served with the PACA Proof of Claim and 

the Complaint in Intervention are the following: 

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September 1, 2010

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October 1, 2010

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November 1, 2010

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November 1, 2010

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November 12, 2010

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November 26, 2010

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January 7, 2011

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September 1, 2010

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 5 of 22
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ORDER ESTABLISHING PACA CLAIMS PROCEDURE – Page 6 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

Counsel for Plaintiffs Higashi Farms, et al.

Patricia J. Rynn, Esq. 

Rynn & Janowsky, LLP 

4100 Newport Place Drive, Suite 700 

Newport Beach, California 92660 

pat@rjlaw.com

Counsel for Plaintiff Braga Ranch

Kelly McCarthy Sutherland, Esq. 

Lombardo & Gilles, LLP 

318 Cayuga Street 

Salinas, CA 93901 

Kelly@lomgil.com

Counsel for Plaintiff Major Farms

Effie F. Anastassiou, Esq.

Anastassiou & Associates 

242 Capitol Street 

Post Office Box 2210 

Salinas, CA 93902 

effieesq@salinasaglaw.com

Counsel for the Receiver

Reid H. Everett, Esq. 

Perkins, Mann & Everett, P.C. 

2222 W. Shaw Avenue, Suite 202 

Fresno, California 93711 

reverett@pmelaw.com

Counsel for G&H Farms, et al.

Paul Hart, Esq. 

Johnson & Moncrief, PLC 

295 Main Street, Suite 600 

Salinas, California 93901 

paulhart@johnsonmoncrief.com

Counsel for Defendant Bank of West

Robert Kaplan, Esq. 

Jeffer Mangels Butler & Marmaro LLP 

Two Embarcadero Center, 5th Floor 

San Francisco, California 94111 

RBK@JMBM.com

Counsel for Defendants Salyer American 

Fresh Foods

Larry J. Lichtenegger, Esq. 

Law Office of Larry Lichtenegger 

3850 Rio Road, #58 

Carmel, California 93923 

lawyer@mbay.net

9. Any PACA Trust Claimant who fails to file a Complaint in Intervention and 

a PACA Proof of Claim or who fails to serve them on the counsel referenced in 

Paragraph 8 above, on or before May 28, 2010 (the "Bar Date"), shall be forever barred

from asserting any claim under PACA against any of the defendants named in the PACA 

Actions, any other third party person or entity and all officers, agents, accountants, 

attorneys, representatives, and employees thereof (collectively, the “Potential PACA 

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September 1, 2010

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 6 of 22
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ORDER ESTABLISHING PACA CLAIMS PROCEDURE – Page 7 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

Liability Parties”). Plaintiffs need only file a PACA Proof of Claim by the May 28, 2010 

deadline. 

10. On or before June 15, 2010, the Receiver shall increase or decrease the PACA 

Funding Amount in the Account to an amount that is equivalent to the sum of all PACA Proof of 

Claims timely filed. In order to pay the fees, costs and out-of-pocket expenses of the Receiver 

and his counsel reasonably incurred in order to carry out, monitor and administer the procedures 

set forth in this Order, the Receiver shall further increase the PACA Funding Amount in the 

Account in the amount of $25,000 (the “Receiver Expense Reserve”). 

 11. Expedited, but limited, discovery relating to any PACA Proof of Claim shall be 

permitted and must be completed on or before July 28, 2010. Any of the Plaintiffs who have 

appeared in the PACA Actions and/or any person or entity that has timely filed a Complaint in 

Intervention and PACA Proof of Claim (collectively, the “PACA Parties-in-Interest” and 

individually, a “PACA Party-in-Interest”) and any of the defendants named in the PACA Actions 

(collectively, the “PACA Defendants”) may serve via electronic mail no more than ten requests 

for production of documents, ten requests for admissions, and ten interrogatories and may take 

one deposition per PACA Proof of Claim, unless otherwise ordered by the Court after a motion 

to be served by electronic mail on all parties in the PACA Actions. Discovery must be 

responded to within 10 days of service and a deposition may be taken upon ten days notice. All 

PACA Parties-in-Interest and PACA Defendants who wish to take the deposition of the Receiver 

shall coordinate their proposed deposition dates with the Receiver’s counsel, so as to minimize 

the number of days that the Receiver is going to be deposed by the PACA Parties-in-Interest and 

the PACA Defendants. The Receiver shall have the right to seek a protective order from the 

above-entitled Court, to limit the number of depositions of the Receiver that may be taken by the 

PACA Parties-in-Interest and the PACA Defendants. 

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November 1, 2010

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September 1, 2010

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 7 of 22
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ORDER ESTABLISHING PACA CLAIMS PROCEDURE – Page 8 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

12. On or before June 28, 2010 (“Objection Deadline”), any objections to any PACA 

Proof of Claim must be filed in Case No. 09-CV-04983-JF and served on counsel referenced in 

Paragraph 8 above and on counsel for the PACA Trust Claimant whose claim is the subject of 

the objection or on the party filing the PACA Proof of Claim if that party is in pro per. Such 

objection shall set forth the legal and factual basis for the objection to PACA Proof of Claim (the 

“Objection”). 

13. On or before July 28, 2010 (“Response Deadline”), any PACA Trust Claimant 

whose claim is subject to a timely Objection may file in Case No. 09-CV-04983-JF a detailed 

response to any Objection received and shall serve concurrently the response on counsel 

referenced in Paragraph 8 above and counsel for the objecting party (the “Response”). Any 

PACA Trust Claimant who has filed a PACA Proof of Claim and Complaint in Intervention who 

fails to timely file and serve a Response by the Response Deadline shall be forever barred from 

asserting a claim under PACA against any of the Potential PACA Liability Parties. 

14. On or before August 6, 2010, the Receiver shall file with the above-entitled Court 

and serve upon all counsel of record in the PACA Actions and any entities that have appeared in 

pro per a chart (“PACA Trust Chart”), which shall identify each person or entity which has filed 

a PACA Proof of Claim and the amount of the claim as set forth in the PACA Proof of Claim, 

the undisputed amount (no objections filed by the Objection Deadline or objections resolved), 

the disputed amount subject to an unresolved and pending Objection, and the claim or portion of 

the claim which is deemed invalid because no response to the objection was filed by the 

Response Deadline. Any objection which any PACA Party-in-Interest or the PACA Defendants 

may have to the PACA Trust Chart must be filed and served on or before August 16, 2010 on 

counsel referenced in paragraph 8 above and on all counsel for any party that filed a PACA 

Proof of Claim and Complaint in Intervention or on the party itself, if the party appeared in pro 

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October 1, 2010

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November 1, 2010

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November 12, 2010

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November 26, 2010

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 8 of 22
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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

per. In the event a timely Objection is filed to the PACA Trust Chart, the objecting party and the 

Receiver shall meet and confer in an effort to resolve said Objection and, if such efforts are not 

successful, the Court shall resolve the Objection filed to the PACA Trust Chart upon a noticed 

Motion to be filed in Case No. 09-CV-04983-JF by the Receiver. No distributions shall be made 

by the Receiver to a PACA Trust Claimant subject to an Objection until this Court resolves the 

Objection which is filed to the PACA Trust Chart. 

15. If an Objection is filed to a PACA Proof of Claim by the Objection Deadline, the 

PACA Trust Claimant and the objecting party shall thereafter exercise their best efforts to 

resolve the objection. If the PACA Trust Claimant and the objector(s) resolve their dispute, they 

shall jointly notify the Receiver’s counsel, counsel for all of the parties referenced in paragraph 8 

above, counsel for the PACA Parties-in-Interest and any party appearing in pro per in writing 

that the objection(s) has been resolved and of the amount of the agreed upon PACA trust claim 

(the “Resolution Notice”). Within five (5) calendar days of the Receiver’s receipt of the 

Resolution Notice, the Receiver shall pay to the PACA Trust Claimant (in the manner stated in 

paragraph 17 of this Order) the amount of the PACA trust claim as set forth in the Resolution 

Notice. In the event the PACA Trust Claimant and the objecting party are unable to resolve the 

dispute or the Objection is not withdrawn, counsel for the PACA Trust Claimant served with the 

Objection shall file and serve in Case No. 09-CV-04983-JF on all PACA Parties-in-Interest and 

the PACA Defendants on or before September 17, 2010, a Motion to Determine the Validity of 

PACA Trust Claim (“PACA Motion”). Any Order entered by this Court on a PACA Motion 

shall be accompanied by a separate judgment implementing any such Order (the "PACA 

Judgment"), as authorized by Federal Rule of Civil Procedure 54(b) and shall be subject to 

appeal as provided for by the Federal Rules of Appellate Procedure. No distributions shall be 

made by the Receiver on account of a PACA Judgment until such time as said PACA Judgment 

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January 7, 2011

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

is a “Final Judgment”. Final Judgment shall mean (i) a PACA Judgment from which (A) no 

appeal was timely filed or (B) an appeal has been filed, but no stay of has been granted pending 

appeal, or (ii) a PACA Judgment from which an appeal was filed and a stay pending appeal has 

been granted where (A) such appeal has been finally determined or resolved, and (B) such PACA 

Judgment was sustained on appeal. 

16. Any alleged PACA trust claim listed on a PACA Proof of Claim, to which no 

Objection has been filed and served prior to the Objection Deadline, shall be deemed a valid 

PACA trust claim for the full amount stated in the PACA Proof of Claim (the “Unobjected to 

PACA Proof Claim”). Within five (5) calendar days of a PACA Proof of Claim becoming an 

Unobjected to PACA Proof of Claim, the Receiver shall pay to the PACA Trust Claimant (in the 

manner stated in paragraph 17 of this Order), the amount of the valid PACA trust claim. 

17. Any distributions made by the Receiver on account of a Unobjected to PACA 

Proof of Claim, a PACA Proof of Claim which is the subject of a Resolution Notice, or on 

account of a PACA Judgment which is a Final Judgment (collectively, the “Successful PACA 

Claims” and individually a “Successful PACA Claim”) shall be paid to the client trust account of 

the attorney of record for the PACA Trust Claimant or, in the event the PACA Trust Claimant is 

in pro per, payable to said PACA Trust Claimant. If an attorney represents more that one PACA 

Trust Claimant, the said distribution may be made in one lump sum in the aggregate amount of 

all of the PACA Trust Claimants represented by said attorney. Each attorney receiving such a 

distribution from the Receiver shall be obligated to correctly pay the amounts paid to said 

attorney by the Receiver to the PACA Trust Claimants represented by the attorney and the 

Receiver shall have no duty or responsibility to determine the manner in which said distribution 

is paid among the various PACA Trust Claimants of said attorney, which determination shall be 

the sole and absolute responsibility of the attorney for the PACA Trust Claimant. 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

18. The Receiver may, at any time, file with the above-entitled Court and serve upon 

all counsel of record in the PACA Actions and any entities that have appeared in pro per a 

request to reimburse the Receiver from the Receiver Expense Reserve for its reasonable fees, 

costs and out-of-pocket expenses (“Reimbursement Request”). Any objection which any PACA 

Party-in-Interest or PACA Defendants may have to the Receiver’s Reimbursement Request must 

be filed and served within five (5) calendar days of the filing of the Reimbursement Request. In 

the event a timely objection is filed to the Reimbursement Request, the objecting party and the 

Receiver shall meet and confer in an effort to resolve said objection and, if such efforts are not 

successful, the Court shall resolve the objection. 

19. To the extent that any monies remain in the Account and the Receiver Expense 

Reserve after the Successful PACA Claimants receive a 100% PACA Payment, any such 

amounts shall be retained by the Receiver for further distribution to creditors of Salyer American 

in the Monterey County Superior Court Action and shall no longer be subject to this Order. 

III. PROCEDURAL ISSUES: 

 20. The PACA Parties-in-Interest and the PACA Defendants are relieved from 

complying with Federal Rule of Civil Procedure 26 until further order of this Court. 

21. All persons or entities having unsatisfied claims against the Potential PACA 

Liability Parties allegedly owed to them by Salyer American and arising under or related to the 

PACA trust for unpaid deliveries of perishable agricultural commodities covered by the PACA 

Trust shall have the right to seek recovery on such claims only by following the procedure 

established by this Order. 

22. None of the PACA Defendants shall be required to file a responsive pleading to 

any Complaint or any Complaint in Intervention filed in the PACA Actions until further order of 

this Court. 

---------------------------------- Account

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

23. Upon resolution of a particular Plaintiff’s claims under PACA under this Order, 

or upon issuance of a PACA Judgment on a Plaintiff’s claims which is subsequently appealed, 

and upon request made by the Plaintiff to this Court, the Court may lift the stay, with respect to 

the pursuit of the Plaintiff's other non-PACA claims against the Defendants. 

IT IS SO ORDERED.

 

DATE: 

 HON. JEREMY FOGEL 

UNITED STATES DISTRICT COURT JUDGE 

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7/19/2010

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 12 of 22
976483v2 

ORDER ESTABLISHING PACA CLAIMS PROCEDURE – Page 13 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

PATRICIA J. RYNN, State Bar No. 092048 

MARION I. QUESENBERY, State Bar No. 072308 

ELISE O’BRIEN, State Bar No. 245967 

RYNN & JANOWSKY, LLP 

4100 Newport Place Drive, Suite 700 

Newport Beach, CA 92660-2423 

Telephone: (949) 752-2911 

Facsimile: (949) 752-0953 

pat@rjlaw.com; marion@rjlaw.com; elise@rjlaw.com

Attorneys for Plaintiffs 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

HIGASHI FARMS, INC., et al., 

Plaintiffs, 

vs. 

SALYER AMERICAN FRESH FOODS, et 

al., 

 Defendants. 

CASE NO. 09-CV-04983 JF 

 09-CV-04985 JF 

 09-CV-04207 JF 

NOTICE OF ORDER ESTABLISHING 

PACA TRUST CLAIMS PROCEDURE 

MAJOR FARMS, INC., 

Plaintiffs, 

vs. 

SALYER AMERICAN FRESH FOODS, et 

al., 

 Defendants. 

BRAGA RANCH, INC., 

Plaintiffs, 

vs. 

SALYER AMERICAN FRESH FOODS, et 

al., 

 Defendants. 

EXHIBIT 1 Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 13 of 22
976483v2 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

TO: ALL CREDITORS OF SALYER AMERICAN FRESH FOODS (“Salyer 

American”) 

PLEASE TAKE NOTICE that on ______________ 2010, the Court issued the attached 

Order Establishing PACA Trust Claims Procedure (the “Order”) in the above-captioned 

proceedings. 

 Under certain circumstances, the trust provisions of the Perishable Agricultural 

Commodities Act (“PACA”), 7 U.S.C. §499e(c), provide for priority payment to qualifying 

sellers of perishable agricultural commodities (“Produce”) who have not received payment for 

Produce sold and shipped to a buyer. In order to qualify as a PACA trust beneficiary entitled to 

such priority payment, the creditor must first have sold perishable agricultural commodities (e.g., 

fruits or vegetables in fresh form, whether or not packed in ice, including frozen). Second, the 

seller of such commodities must have timely complied with certain statutory requirements to 

validly preserve PACA trust benefits and qualify as a PACA trust creditor. Sellers who prove 

they have met all statutory requirements and have valid PACA trust claims are entitled to share 

in the distribution of Salyer American’s PACA trust assets. 

 The Order sets forth a procedure where creditors who believe that they have a valid 

PACA trust claim against Salyer American for perishable agricultural commodities sold to it (the 

"PACA Trust Claimants") must intervene in the Court proceedings and prove their PACA trust 

claims against Salyer American. If you are a PACA Trust Claimant and sold perishable 

agricultural commodities to Salyer American and have not been paid for the Produce and you 

desire to assert a PACA trust claim against Salyer American and share in any distribution of 

Salyer American’s assets to PACA trust creditors, you must timely and fully comply with all 

terms of the following claims procedure for produce creditors. 

/ / / 

/ / / 

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 14 of 22
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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

CLAIMS PROCEDURE FOR PRODUCE CREDITORS

1. On or before the May 28, 2010, “Deadline to File and to Serve Complaint in 

Intervention and PACA Proof of Claim,” any potential PACA trust creditors who wish to protect 

their PACA trust rights against Salyer American must file in Case No. 09-CV-04983 (i) a 

Complaint in Intervention which complies with Federal Rule of Civil Procedure 8(a), unless they 

have already filed and served it and are listed in paragraph 2 below, and (ii) a PACA Proof of 

Claim substantially similar to the form attached as Exhibit 2 to this Notice with the Clerk of the 

United States District Court. 

2. The Complaint in Intervention and the Proof of Claim must also be served upon: 

Counsel for Plaintiffs Higashi Farms, et al.

Patricia J. Rynn, Esq. 

Rynn & Janowsky, LLP 

4100 Newport Place Drive, Suite 700 

Newport Beach, California 92660 

pat@rjlaw.com

Counsel for Plaintiff Braga Ranch

Kelly McCarthy Sutherland, Esq. 

Lombardo & Gilles, LLP 

318 Cayuga Street 

Salinas, CA 93901 

Kelly@lomgil.com

Counsel for Plaintiff Major Farms

Effie F. Anastassiou, Esq.

Anastassiou & Associates 

242 Capitol Street 

Post Office Box 2210 

Salinas, CA 93902 

effieesq@salinasaglaw.com

Counsel for Defendant Steve Franson

Reid Everett, Esq. 

Perkins, Mann & Everett, P.C. 

2222 W. Shaw Avenue, Suite 202 

Fresno, California 93711 

reverett@pmelaw.com

Counsel for G&H Farms, et al.

Paul Hart, Esq. 

Johnson & Moncrief, PLC 

295 Main Street, Suite 600 

Salinas, California 93901 

paulhart@johnsonmoncrief.com

Counsel for Defendant Bank of West

Robert Kaplan, Esq. 

Jeffer Mangels Butler & Marmaro LLP 

Two Embarcadero Center, 5th Floor 

San Francisco, California 94111 

RBK@JMBM.com

------------------

September 1, 2010

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

Counsel for Defendants Salyer American 

Fresh Foods

Larry J. Lichtenegger, Esq. 

Law Office of Larry Lichtenegger 

3850 Rio Road, #58 

Carmel, California 93923 

lawyer@mbay.net

The parties hereto agree that service is permitted to be made pursuant to Fed.R.Civ.P. 5(b)(2)(E) 

via e-mail, provided that if service is effectuated via e-mail, a copy of the document shall also be 

served via U.S. Mail on the date of e-mail service, and service via e-mail shall be made to the 

following e-mail address identified above. All filings will be accompanied by a certificate of 

service. 

3. Either the claimant’s owners or the claimant’s authorized representative of 

the respective claimant having personal knowledge of the facts comprising such claims 

must verify each PACA Proof of Claim. Any PACA Trust Claimant who fails to file a 

Complaint in Intervention and a PACA Proof of Claim or who fails to serve them on the 

counsel referenced in Paragraph 2 above, both on or before May 28, 2010 shall be forever 

barred from asserting any claim under PACA against any of the defendants named in Case 

Nos. 09-CV-04983JF, 09-CV-04985JF and 09-CV-04207JF pending in the above-entitled 

Court, any other third party person or entity and all officers, agents, accountants, 

attorneys, representatives, and employees thereof. 

4. Additional deadlines governing the determination and payment of valid PACA 

claims against Salyer American are set forth in the Order and are summarized below: 

Deadline to File and to Serve Complaint in Intervention 

and PACA Proof of Claims.................................................... May 28, 2010 

Deadline to File and to Serve Objections to 

any PACA Proof of Claim........................................................June 28, 2010 

Deadline to Complete Discovery in Regard to PACA Trust Claims... July 28, 2010 

Deadline to File and to Serve Responses to Objections 

to PACA Proof of Claim ..........................................................July 28, 2010 

-------------------

September 1, 2010

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------------------

------------------

-----------------

September 1, 2010

October 1, 2010

November 1, 2010

November 1, 2010

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 16 of 22
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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

 

 Deadline to File PACA Trust Chart............................................ August 6, 2010 

Deadline to File and to Serve Objection to the PACA Trust Chart.....August 16, 2010 

Deadline to File and to Serve Motion to Determine Validity of 

PACA Claims.................................................................September 17, 2010 

If you have any questions concerning this Notice or whether you qualify as a PACA trust 

creditor of Salyer American or any of its affiliated entities, you are strongly advised to seek legal 

counsel immediately. 

PERKINS, MANN & EVERETT, P.C. 

Dated: April ___, 2010 

REID EVERETT, attorneys for Defendant STEVE 

FRANSON 

--------------------

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-------------------------

------

November 12, 2010

November 26, 2010

January 7, 2011

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 17 of 22
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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

______________________________ 

______________________________ 

______________________________ 

______________________________ 

______________________________ 

______________________________ 

Attorneys for Intervening Plaintiff 

______________________________ 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

HIGASHI FARMS, INC., et al., 

Plaintiffs, 

vs. 

SALYER AMERICAN FRESH FOODS, et 

al., 

 Defendants. 

CASE NO. 09-CV-04983 JF 

 09-CV-04985 JF 

 09-CV-04207 JF 

PACA PROOF OF CLAIM 

MAJOR FARMS, INC., 

Plaintiffs, 

vs. 

SALYER AMERICAN FRESH FOODS, et 

al., 

 Defendants. 

BRAGA RANCH, INC., 

Plaintiffs, 

vs. 

SALYER AMERICAN FRESH FOODS, et 

al., 

 Defendants. 

EXHIBIT 2

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 18 of 22
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RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

DECLARATION OF _________________________ IN SUPPORT OF PACA 

TRUST PROOF OF CLAIM OF________________________________ 

 I, ____________________, declare: 

1. I am the ____________________ of ________________________ (hereinafter 

“Claimant”), and I file this Declaration and declare under penalty of perjury that the following 

are true statements. Claimant files this Declaration for the purpose of supporting its Perishable 

Agricultural Commodities Act trust claim against SALYER AMERICAN FRESH FOODS 

(“Salyer American”), and the individual Defendants in this case, pursuant to the Perishable 

Agricultural Commodities Act (“PACA”), 7 U.S.C. §499e(c). I am authorized to make this 

Declaration and I am competent to testify at trial, if necessary, regarding the statements made in 

this Declaration. 

2. Claimant: 

 is licensed by the USDA-PACA, and currently holds valid PACA license 

number _____________, and was so validly licensed during the period applicable 

to the transactions which are the subject of this claim. 

 is not licensed by the USDA-PACA, and was not so licensed during the 

period applicable to the transactions which are the subject of this claim. 

3. The sales transactions between Claimant and Salyer American were based on the 

following payment term(s): ___________________________________________ 

__________________________________________________________________

__________________________________________________________________

_________________________________________________________________. 

4. Claimant sold and delivered perishable agricultural commodities consisting of 

fresh fruits and/or vegetables (hereinafter “Produce”) on credit to Salyer American, as described 

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 19 of 22
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RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

in the chart attached to this Declaration (“Trust Chart”) as Exhibit A. In each instance, the 

Produce was received and accepted by Salyer American and no adjustments have been made on 

the invoice except as listed in the Trust Chart. In the Trust Chart, if invoices were sent to Salyer 

American for the commodity sold to Salyer American, I have listed them by number under the 

column “Invoice Number”; “Transaction Date” on the Trust Chart refers to the date which begins 

the payment term between the parties; when invoices were sent to Salyer American, I have listed 

under the column “Invoice Date,” which is the date the invoice was sent to Salyer American; the 

column “Payment Due Date” refers to the date payment was due based upon the payment terms 

between the parties. If Claimant claims trust status by virtue of a Notice of Intent to Preserve 

Trust Benefits (hereinafter “Trust Notice”), I have listed the date Claimant gave the Trust Notice 

to Salyer American under the column “Date Notice Given”; otherwise, it is blank. “Total 

Amount Due” refers to the amount owed and remaining unpaid, whether or not it qualifies for 

trust protection; and “PACA Trust Amount” refers to the amount owed and remaining unpaid 

qualifying for trust protection pursuant to the trust provisions of the PACA. 

5. Claimant preserved its PACA trust rights against Salyer American: 

 by including the statutorily required language on Claimant’s invoice or 

other billing statement [7 U.S.C. §499e(c)(4)]; 

 by serving Trust Notices upon Salyer American within thirty (30) days

after expiration of the time prescribed by which payment must be made, as set 

forth in regulations issued by the Secretary [7 U.S.C. §499e(c)(3)(i)]; 

 by serving Trust Notices upon Salyer American within thirty (30) days

after expiration of such other time, as the parties have expressly agreed to in 

writing before entering the transaction [7 U.S.C. §499e(c)(3)(ii)]; 

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 20 of 22
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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

 by serving Trust Notices upon Salyer American within thirty (30) days

after Claimant received notice that the payment instrument promptly presented for 

payment has been dishonored (7 U.S.C. §499e(c)(3)(iii)); or 

 by the following method: ________________________________ 

 ___________________________________________________________ 

____________________________________________________________ 

___________________________________________________________. 

6. If Claimant sent invoices to Salyer American, they were sent via: 

  U.S. Mail  Facsimile 

  Hand-Delivery  Other: __________________ 

7. Attached to this Declaration as Exhibit B are true and accurate copies, if 

applicable, of all Trust Notices, unpaid invoices, bills of lading, and other evidence and 

documents which may be necessary or helpful for the just determination of this claim. 

8. The total amount past due and unpaid from Salyer American totals 

$___________, of which, $______________ qualifies for PACA trust protection. 

I understand that the penalty for presenting a fraudulent claim is a fine of up to Five 

Thousand Dollars ($5,000.00) or imprisonment for up to five (5) years, or both. 18 U.S.C. §152. 

I declare that under penalty of perjury, under the laws of the United States of America 

and the State of __________________, that the foregoing is true and correct based on my 

personal knowledge. 

Executed this _____ day of _____________________ 20__ at ____________, State of 

____________. 

 

 ________________________, 

 Title: 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

4100 NEWPORT PLACE DRIVE 

SUITE 700 

NEWPORT BEACH, CALIFORNIA 92660 

(949) 752-2911 

FAX (949) 752-0953

Case 5:09-cv-04983-JF Document 51 Filed 07/19/10 Page 22 of 22