Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_03-cv-06374/USCOURTS-caed-1_03-cv-06374-7/pdf.json

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

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STIPULATION RE DISTRIBUTION OF PJ PRODUCE RECEIVABLE TO TRUSTEE AND FOR 

PAYMENT OF FEES AND COSTS TO COURT APPOINTED LITIGATION COUNSEL

Joseph Choate, Jr., 039018

Bradley L. Cornell, 162384

CHOATE & CHOATE 

523 West Sixth Street, Suite 541

Los Angeles, California 90014-1225

Telephone: (213) 623-2297

Facsimile: (213) 623-6429

Counsel for Plaintiff

Four Seasons Produce, Inc.

and Plaintiff-in-Intervention

Stevco, Inc.

UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF CALIFORNIA - FRESNO DIVISION

FOUR SEASONS PRODUCE, INC.,

Plaintiff,

vs.

CONTINENTAL FOOD GROUP, LLC,

etc., et al.,

Defendants.

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AND RELATED COMPLAINTS IN

INTERVENTION

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Case No. CIV-F-03-6374 LJO 

[Lawrence J. O'Neill]

STIPULATION RE DISTRIBUTION OF

PJ PRODUCE RECEIVABLE TO

TRUSTEE AND FOR PAYMENT OF FEES

AND COSTS TO COURT APPOINTED

LITIGATION COUNSEL

Case 1:03-cv-06374-NEW Document 123 Filed 11/04/05 Page 1 of 8
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______________________________________________________________

STIPULATION RE DISTRIBUTION OF PJ PRODUCE RECEIVABLE TO TRUSTEE AND FOR 

PAYMENT OF FEES AND COSTS TO COURT APPOINTED LITIGATION COUNSEL

FACTUAL BACKGROUND

1. On August 16, 2004, the court entered its Order on the

parties' Second Amended And Restated Stipulation for Preliminary

Injunction ("Stipulation & Order") establishing a procedure for

collection of defendant Continental Food Group, LLC's ("CFG's")

receivables and distribution of those receivables to qualified

PACA claimants.

2. Pursuant to ¶29 of the Stipulation & Order, the court

authorized the collection of a significant outstanding receivable

from P.J. Produce, Inc. ("PJ") which is the subject of a pending

action in the United States District Court, Southern District of

New York, encaptioned Continental Food, et al v. P.J. Produce,

Inc., et al, Case No. 1:03-cv-07101. The action alleges PACA

Trust violations by PJ in favor of CFG. A Preliminary Injunction

has been entered in the PJ action which provides for the

collection, liquidation, and distribution of PJ's PACA Trust

assets to PJ's qualified PACA trust creditors. CFG's pro-rata

share of the proceeds collected in the PJ action is in turn a

PACA Trust asset of CFG subject to distribution in the instant

action. Paragraph 29 of the Stipulation & Order in the instant

action authorized Louis W. Diess, Esq., to represent CFG in the

PJ litigation for the purpose of collecting amounts owed to CFG

from PJ and authorized compensation for that representation

payable from the proceeds in the PJ litigation, subject to order

on stipulation of the parties or application to the court. 

3. A first distribution of PJ PACA trust assets has been

authorized in the PJ action. CFG's gross pro-rata share of the

first distribution is $141,821.90. 

Case 1:03-cv-06374-NEW Document 123 Filed 11/04/05 Page 2 of 8
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STIPULATION RE DISTRIBUTION OF PJ PRODUCE RECEIVABLE TO TRUSTEE AND FOR 

PAYMENT OF FEES AND COSTS TO COURT APPOINTED LITIGATION COUNSEL

4. The PJ litigation has required, inter alia, the

following actions by the court appointed counsel:

September 2003

a) Initiate federal court action in the Southern District of

New York and obtain ex parte Temporary Restraining Order

("TRO") to prevent further dissipation of assets impressed

with the PACA trust; b) Negotiate, draft and obtain entry of

Preliminary Injunction Order and PACA Claims Procedure

Order; c) Negotiate wind-down budget with counsel for

defendants.

October, 2003

a) Obtain and review financial documents of PJ and oversee

collection of accounts receivable of PJ; b) Prepare PACA

Proofs of Claim for Continental.

November, 2003

a) Review of all PACA claims fled against PJ and prepare and

file objections thereto; b) Review of objections to claims

and respond to discovery requests of defendants; c) Review

and analyze initial offer to purchase interest of PJ's units

on Hunts Point Terminal Market.

December, 2003

Draft and file responses to objections to claim.

January, 2004

Prepare for and attend status conference.

February - March, 2004

a) Review and redraft of PACA trust chart prepared by

counsel for PJ; b) Obtain and review documents from client

to resolve objections to claim of Continental; c) Attend

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4.

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STIPULATION RE DISTRIBUTION OF PJ PRODUCE RECEIVABLE TO TRUSTEE AND FOR 

PAYMENT OF FEES AND COSTS TO COURT APPOINTED LITIGATION COUNSEL

hearing on objection to claims.

April - May, 2004

Review of additional offers for units, reject certain offers

and obtain increased final bid for units.

June - July, 2004

a) Review of motion to intervene of Union Pacific Railway

and draft opposition thereto; b) Review and approve of

closing documents for sale of units and order authorizing

sale.

September, 2004

Review all documents relating to objections to claims,

analyze objections and begin settlement negotiations with

counsel for PJ and attorney for Jacobson's PACA trust

creditors (Jacobson was the prior owner of units).

October, 2004

Attend hearing and successfully defeat Union Pacific's

motion to intervene.

December, 2004 - January, 2005

Negotiate and settle claim of Jacobson and objections to

claim of Continental.

February- March, 2005

Negotiate settlement with one individual defendant and

redraft order to disburse PACA funds.

May, 2005

a) Draft of opposition to Union Pacific's motion to stay

distribution, prepare and argue motion to stay in Court of

Appeals for Second Circuit; b) Draft and file Appeal Brief

on Union Pacific appeal of order denying intervention.

Case 1:03-cv-06374-NEW Document 123 Filed 11/04/05 Page 4 of 8
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STIPULATION RE DISTRIBUTION OF PJ PRODUCE RECEIVABLE TO TRUSTEE AND FOR 

PAYMENT OF FEES AND COSTS TO COURT APPOINTED LITIGATION COUNSEL

June and August, 2005

Attend status conference and obtain order authorizing

distribution.

5. For the services outlined above CFG has incurred legal

fees & costs in the PJ's action payable to McCarron & Diess and

local counsel in New York in the aggregate amount of $37,832.12. 

No payment has been received by McCarron & Diess or local counsel

for any of the services provided. 

6. The proposed net distribution to CFG from the PJ

litigation is $103,989.78 (gross distribution of $141,821.90 less

fees and costs of $37,832.12).

7. McCarron & Diess is holding an additional 5% of CFG's

qualified PACA claim pending the Court of Appeals decision on the

Union Pacific's claim.

STIPULATION

NOW THEREFORE, the parties by and through their respective

counsel of record hereby stipulate as follows:

1. The trustee herein is authorized to accept a first

distribution from the trustee in the PJ litigation in the net

amount of $103,989.12 to be distributed pursuant to the terms of

the Second Amended And Restated Stipulation for Preliminary

Injunction and Order thereon entered in the instant action.

2. Louis W. Diess, Esq., of McCarron & Diess is authorized

to withhold and pay to McCarron & Diess and local counsel in New

York the aggregate sum of $37,832.12 from the gross distribution

of $141,821.90 in payment of legal fees and costs incurred by CFG

in the PJ action.

Case 1:03-cv-06374-NEW Document 123 Filed 11/04/05 Page 5 of 8
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STIPULATION RE DISTRIBUTION OF PJ PRODUCE RECEIVABLE TO TRUSTEE AND FOR 

PAYMENT OF FEES AND COSTS TO COURT APPOINTED LITIGATION COUNSEL

IT IS SO STIPULATED:

Dated: October 28, 2005 CHOATE & CHOATE

 /s/Bradley L. Cornell 

Bradley L. Cornell

Counsel for Plaintiffs,

Four Seasons Produce, Inc. and

Stevco, Inc. 

Dated: October 28, 2005 FARLEY LAW FIRM

 /s/Michael L. Farley 

Michael L. Farley

Counsel for Defendants Continental

Food Group, LLC, Ki Thompson, and

Lionel Guzman

Dated: October 28, 2005 KIMBLE, MACMICHAEL, & UPTON

 /s/Chistopher E. Seymour 

Jon Wallace Upton

Christopher E. Seymour

Counsel for Defendant New Leaf Tree

Fruit Company, Inc.

Dated: October 28, 2005 RYNN & JANOWSKY, LLP

 /s/Bart M. Botta 

Bart M. Botta

Counsel for Plaintiffs UniMark

Foods, Inc.; Suntreat Packing &

Shipping Company; and Anthony

Vineyards

Case 1:03-cv-06374-NEW Document 123 Filed 11/04/05 Page 6 of 8
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STIPULATION RE DISTRIBUTION OF PJ PRODUCE RECEIVABLE TO TRUSTEE AND FOR 

PAYMENT OF FEES AND COSTS TO COURT APPOINTED LITIGATION COUNSEL

Dated: October 28, 2005 SANTOS, STOKES, LLP 

 /s/Craig A. Stokes 

Craig A. Stokes

Counsel for Intervenors Citricos

Cortes SPR de RI and A-W Produce

Company

Dated: October 28, 2005 LEDFORD LAW CORPORATION

 /s/Merl Ledford, III 

Merl Ledford, III

Counsel for Euro-Pacific Fruit

Export, Inc.

Dated: October 28, 2005 MEUERS LAW FIRM, P.L.

 /s/Lawrence H. Meuers 

Lawrence H. Meuers

Counsel for DNE World Fruit Sales

d/b/a of Bernard Egan & Company

Dated: October 28, 2005 TYRE KAMINS KATZ GRANOF & MENES

 /s/Alan J. Cohen 

Alan J. Cohen

Counsel for James Abbate dba

Pacific Sales Company

Case 1:03-cv-06374-NEW Document 123 Filed 11/04/05 Page 7 of 8
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STIPULATION RE DISTRIBUTION OF PJ PRODUCE RECEIVABLE TO TRUSTEE AND FOR 

PAYMENT OF FEES AND COSTS TO COURT APPOINTED LITIGATION COUNSEL

Dated: October 28, 2005 MCCARRON & DIESS

 /s/Louis W. Diess 

Louis W. Diess

Court Appointed Counsel for

Continental Food Group, LLC in 

PJ's Litigation

O R D E R

Having read and considered the above stipulation,

IT IS HEREBY ORDERED that:

1. The trustee herein is authorized to accept a first

distribution from the trustee in the PJ litigation in the net

amount of $103,989.12 to be distributed pursuant to the terms of

the Second Amended And Restated Stipulation for Preliminary

Injunction and Order thereon entered in the instant action.

2. Louis W. Diess, Esq., of McCarron & Diess is authorized

to withhold and pay to McCarron & Diess and local counsel in New

York the sum of $37,832.12 from the gross distribution of

$141,821.90 in payment of legal fees and costs incurred by CFG in

the PJ action.

IT IS SO ORDERED.

Dated: November 3, 2005 /s/ Lawrence J. O'Neill 

66h44d UNITED STATES MAGISTRATE JUDGE

Case 1:03-cv-06374-NEW Document 123 Filed 11/04/05 Page 8 of 8