Distributor Personally Liable to Avocado Sellers for $140,000

The former owner of a now-defunct produce distribution company is personally liable in a Perishable Agricultural Commodities Act lawsuit brought by two sellers of avocados who said his company failed to pay them $70,000 each, the Fifth Circuit ruled Thursday.

Iscavo Avocados USA LLC and Villita Avocados Inc. sued Coram Deo Farms Inc. and Adrian Pryor, an officer and 80% owner of Coram Deo, for alleged violations of PACA, which was enacted to protect produce sellers and promote fair dealings. The act’s trust provision requires buyers to hold proceeds from a subsequent sale for unpaid suppliers.

The district court denied ...