Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_08-cv-00122/USCOURTS-cand-5_08-cv-00122-2/pdf.json

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

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28 This disposition is not designated for publication and may not be cited. 1

Case No. C 08-122

ORDER RE: STIPULATION TO MODIFY PRELIMINARY INJUNCTION

(JFLC1)

**E-Filed 3/11/2008**

NOT FOR CITATION

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

ASA FARMS, INC. A California corporation and

BRAGA RANCH,

 Plaintiffs,

 v.

FRESH ‘N HEALTHY, INC. a Delaware

corporation, et. al.,

 Defendant.

Case Number C 08-122

ORDER RE: STIPULATION TO 1

MODIFY PRELIMINARY

INJUNCTION

[re: docket no. 23]

On January 29, 2008, the Court enjoined Fresh ‘N Healthy, Inc. (“Fresh”) from

dissipating, paying, transferring, assigning or selling any and all assets covered by or subject to

the trust provisions of PACA unless it can be shown that a particular asset is not derived from

perishable agricultural commodities, inventories of food or other products derived from

perishable agricultural commodities or receivables or proceeds from the sale of such

commodities or products. The parties subsequently filed a stipulation to modify the preliminary

injunction which provides as follows:

Case 5:08-cv-00122-JF Document 26 Filed 03/11/08 Page 1 of 4
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 Without citing any legal authority, Oceano objects on four grounds: (1) there is no 2

evidence in the stipulation to meet Fresh's burden of proving that the assets are not derived from

perishable agricultural commodities or receivables or proceeds from the sale of such

commodities or products; (2) there is no evidence the prices at which the assets are to be sold

represent fair or equitable value for the assets; (3) Ashman Company (the proposed purchaser of

many of the assets) is an auctioneer not an agricultural company and therefore unlikely to use the

assets, therefore, it is likely that the purpose of the sale is to find a way to resell the assets to

Fresh; and (4) there is no provision in the stipulation requiring that the creditors, including

PACA an non-PACA creditors be given notice of an intended sale of assets.

2

Case No. C 08-122

ORDER RE: STIPULATION TO MODIFY PRELIMINARY INJUNCTION

(JFLC1)

(1) Defendant is hereby authorized to sell, in one or more private sales, its

machinery, fixtures, equipment and intellectual property, including labels,

packaging and unregistered trade names and trademarks, provide, however, that

the proceeds of such sale or sales shall be held in a segregated account at

Comerica Bank subject to any and all claims of Plaintiffs, if any, to assert PACA

rights thereto.

(2) Except as expressly set forth, nothing herein contained shall waive, alter or

modify the rights of the parties under the Order, and the segregated proceeds shall

be subject to Plaintiffs' PACA rights, if any, to the same extent and with the same

validity and priority as such rights attached to the machinery, fixtures, equipment

and intellectual property itself.

Oceano Packing Company (“Oceano”) has filed a motion seeking to intervene and

opposing the stipulation. Fresh argues that Oceano's interests are fully protected, and it offers to 2

make Oceano a party to the stipulation. Having considered the parties’ submissions, the Court

will sign the stipulation, subject to the following conditions:

(1) Oceano will be added as a party to this action;

(2) the parties shall appear on Friday, March 14, 2008 at 9:30 AM to argue Oceano’s

opposition to disposition of sale proceeds authorized by the stipulation;

(3) the proceeds of any sale made prior to Friday, March 14, 2008 may not be distributed

prior the hearing or without permission of the Court.

IV. ORDER

Good cause therefor appearing, IT IS SO ORDERED.

Case 5:08-cv-00122-JF Document 26 Filed 03/11/08 Page 2 of 4
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Case No. C 08-122

ORDER RE: STIPULATION TO MODIFY PRELIMINARY INJUNCTION

(JFLC1)

DATED: March 11, 2008.

 

JEREMY FOGEL

United States District Judge

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Case No. C 08-122

ORDER RE: STIPULATION TO MODIFY PRELIMINARY INJUNCTION

(JFLC1)

This Order has been served upon the following persons:

Case 5:08-cv-00122-JF Document 26 Filed 03/11/08 Page 4 of 4