Summary of a Recent
Judicial Development in
Perishable Agricultural Commodities Act

Award of Reparations to Produce Supplier Affirmed

Jillian Hishaw
National AgLaw Center Graduate Assistant

In B.T. Produce Co., Inc., v. Robert A. Johnson Sales, Inc., 354 F.Supp.2d 284 (S.D.N.Y. 2004), the United States District Court for the Southern District of New York affirmed a reparations award in favor of a produce supplier pursuant to the Perishable Agricultural Commodities Act (PACA), 7 U.S.C. §§ 499a-499t. B.T. Produce Co., Inc. (BTP) was a produce wholesaler that, through an employee and part-owner, bribed USDA inspectors to downgrade the quality of suppliers' produce so that the suppliers would reduce the price of their produce. See id. at 285. Robert A. Johnson Sales (Johnson) was a produce supplier that brought a reparations claim against BTP, "seeking reimbursement for the amount by which ten shipments of grapes to BTP . . . were devalued as a result of allegedly fraudulent inspections." Id. at 287. A USDA Judicial Officer entered a reparations order in favor of Johnson. See id. BTP appealed the Judicial Officer's decision to federal district court. See id. The district court affirmed the Judicial Officer's decision, holding that reparations were warranted. See id.

The case was decided on December 14, 2004; this summary was posted Dec. 2, 2005.