Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_16-cv-00878/USCOURTS-cand-3_16-cv-00878-0/pdf.json

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

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SEQUOIA SALES, INC., 

 Plaintiff, 

vs. 

LIM’S PRODUCE, INC.; MARC LIM, 

 Defendants. 

Case No.: 3:16-cv-878 JCS 

TEMPORARY RESTRAINING 

ORDER AND ORDER TO SHOW 

CAUSE RE PRELIMINARY 

INJUNCTION 

[FRCP Rule 65] 

CHICK’S PRODUCE, INC., a 

corporation; DEL-FRESH PRODUCE, 

INC., a corporation, 

 Intervening-Plaintiffs, 

vs. 

LIM’S PRODUCE, INC., a corporation; 

MARC Y. LIM, an individual, 

 Defendants. 

/// 

/// 

/// 

Case 3:16-cv-00878-JCS Document 38 Filed 04/29/16 Page 1 of 4
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After review of the Complaint in Intervention of Intervening Plaintiffs CHICK’S 

PRODUCE INC. and DEL-FRESH PRODUCE, INC. (“Intervening Plaintiffs”), on file 

in the above-captioned action, and the declarations, exhibits and Memorandum of Points 

and Authorities in support of Intervening Plaintiffs’ Application for a Temporary 

Restraining Order and/or Preliminary Injunction submitted therewith, as well as the 

Defendants’ Opposition to the Issuance of a Temporary Restraining Order, and the 

Arguments Submitted by Defendants and Intervening Plaintiffs with respect to the scope 

of the automatic stay resulting from the Chapter 7 Bankruptcy Petition filed by Defendant 

Marc Young Lim on April 26, 2016, it appears to the satisfaction of the Court that this is 

a proper case for granting a Temporary Restraining Order and Order to Show Cause as to 

Defendant Lim’s Produce, Inc. (“Lim’s Produce”) only. 

IT IS HEREBY ORDERED that Lim’s Produce appear in Courtroom G of the 

U.S. District Court for the Northern District of California, San Francisco, CA 94102 on 

May 13, 2016 at 2:00 p.m., or as soon thereafter as the matter may be heard, then and 

there to show cause why Lim’s Produce, or anyone acting on behalf of or in concert with 

Lim’s Produce, should not be restrained and preliminarily enjoined during the pendency 

of this action, pursuant to Rule 65 of the Federal Rules of Civil Procedure, from engaging 

in, committing, or performing directly and indirectly, any and all of the following acts: 

Removing, withdrawing, transferring, assigning or selling to any other person or entity, 

the proceeds from the sales of any or all existing or future inventories of food or other products 

derived from perishable (including frozen) agricultural commodities, and/or receipts of payment 

for products sold prior to the date of this order and/or otherwise disposing of assets, books or 

funds; 

Taking any other action whatsoever which causes, has the effect of causing, or which 

otherwise dissipates Intervening Plaintiffs’ beneficiary interests in trust assets of the Perishable 

Agricultural Commodities Act (“PACA”) [7 U.S.C. §499e, et seq.]; 

Taking any other action whatsoever which violates 7 U.S.C. §499e(c)(1) through (4), 

inclusive, and 7 U.S.C. §499b(4) [§2 of PACA]. 

Case 3:16-cv-00878-JCS Document 38 Filed 04/29/16 Page 2 of 4
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IT IS FURTHER ORDERED that Defendant Lim’s Produce appear at the same 

time and place to show cause why Lim’s Produce and any persons acting on its behalf 

should not be commanded by order of this Court and required to distribute PACA trust 

assets in the amount of at least $939,355.50 in PACA Trust principal owing to 

Intervening Plaintiffs, consisting of $895,957.50 due to Chick’s and $43,398.00 due to 

Del-Fresh, plus filing fees of $400.00 as of the date hereof. 

IT IS FURTHER ORDERED that pending the hearing and determination of the foregoing 

Order to Show Cause, Defendant Lim’s Produce and anyone acting on behalf of or in concert 

with Lim’s Produce shall be and hereby are prevented from transferring, withdrawing or in any 

other manner removing Perishable Agricultural Commodities Act [7 U.S.C. §499e, et seq.] trust 

assets, from any accounts in the name of Lim’s Produce to the extent that there has not been a 

valid transfer of ownership of those accounts to Marc Lim. 

IT IS FURTHER ORDERED that pending the hearing and determination of the foregoing 

Order to Show Cause, Defendant Lim’s Produce and anyone acting on behalf of or in concert 

with Lim’s Produce, shall be preliminarily enjoined from engaging in, committing, or 

performing directly and indirectly, any and all of the following acts: 

Removing, withdrawing, transferring, assigning or selling to any other person or entity, 

the proceeds from the sales of any or all existing or future inventories of food or other products 

derived from perishable agricultural commodities, and/or receipts of payment for products or 

crops sold prior to the date of this order and/or otherwise disposing of assets, books or funds; 

Taking any other action whatsoever which causes, has the effect of causing, or which 

otherwise dissipates Intervening Plaintiffs’ beneficiary interests in the trust assets; 

Taking any other action whatsoever which violates 7 U.S.C. §499e(c)(1) through 

(4), inclusive, and 7 U.S.C. §499b(4) [§2 of Perishable Agricultural Commodities Act 

(“PACA”)]. 

IT IS FURTHER ORDERED that no bond shall be required to be posted by 

Intervening Plaintiffs before the Temporary Restraining Order is effective. 

IT IS FURTHER ORDERED that Intervening Plaintiffs shall serve Defendant 

Lim’s Produce with copies of this Order and all pleadings and other papers in support of 

Case 3:16-cv-00878-JCS Document 38 Filed 04/29/16 Page 3 of 4
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the Order on or before May 2, 2016 by Federal Express with verification of receipt. 

Defendant Lim’s Produce shall file an Opposition, if any, to the Order to Show Cause on 

or before May 4, 2016, and shall personally serve Intervening Plaintiffs’ counsel with a 

copy of said Opposition by said deadline. Intervening Plaintiffs shall file and serve a 

Reply to Defendant’s Opposition, if any, on or before May 9, 2016. 

In their briefs, the parties should address the question of why the Bankruptcy 

Court cannot afford adequate interim relief to Intervening Plaintiffs in light of the fact 

that: 1) Lim’s Produce has purportedly transferred all of its assets and liabilities to Marc 

Lim; 2) the Bankruptcy Court has concurrent jurisdiction over claims under PACA, see 

Southland + Keystone v. Official PACA Creditors’ Committee, 132. B.R. 632, 638 (BAP 

9th Cir. 1991); and 3) the Bankruptcy Court is equipped to handle disputes relating to 

whether specific assets are subject to a PACA trust or, alternatively, part of the estate, 

under Rule 7001 of the Federal Rules of Bankruptcy. The parties need not repeat 

arguments that have been made in the briefs that were filed in connection with the instant 

motion but are not prohibited from revisiting those issues if they believe additional 

explanation of their positions will be helpful to the Court. 

In addition, a case management conference is set for May 13, 2016 at 2:00 p.m.

All parties in this case except the Debtor in the Bankruptcy Case, Marc Lim, are required 

to appear and shall file one week in advance a joint case management statement 

addressing the implications for this case of the mandatory bankruptcy stay as to the 

individual defendant in light of the purported assignment of all of the corporate entity’s 

assets to Mr. Lim.

DATED: April 29, 2016 

 _______________________________ 

 HON. JOSEPH C. SPERO 

MAGISTRATE JUDGE 

U.S. DISTRICT COURT 

Case 3:16-cv-00878-JCS Document 38 Filed 04/29/16 Page 4 of 4