Reparation Report

The following summaries of precedent-setting reparation decisions issued under the U.S. Department of Agricultural (USDA) Perishable Agricultural Commodities Act (PACA) are intended to help companies understand their rights and responsibilities under PACA. The key facts and core reasoning used to decide cases are presented.

TOPICS: EVIDENCE OF DUMPING

Lamantia-Cullum-Collier & Company, Inc. 
(McAllen, Texas)
v.
Bert P. Castille
(Sunset, Louisiana)

34 A.D. 769, decided April 21, 1975

Lamantia-Cullum-Collier & Company, Inc. (LCC), by oral contract, sold and shipped one truckload of onions to Bert P. Castille (Castille) on a delivered basis. Upon arrival of the truckload of onions at destination, LCC and Castille mutually agreed to rescind the original contract of sale, and further agreed that Castille would handle the truckload of onions on consignment for LCC’s account.

Having agreed to handle the onions on consignment, it was the duty of Castille to promptly and properly sell the onions, to render an accounting to LCC concerning such sale, and pay LCC the net proceeds thereof.

Castille, however, failed to pay LCC in connection with this consignment transaction.  Castille, as its defense, took the position that their nonperformance was excused due to the onions arriving in a badly deteriorated condition.  Castille alleged they were unable to sell the onions, which were ultimately dumped.

Aside from its allegation to this effect, Castille offered little, if any, evidence of probative value substantiating the necessity for the destruction of the onions, or that such destruction was in fact accomplished.  Despite the fact that §46.23 of the USDA’s regulations deals at some length with the procedures by which reasonable cause for the destruction of produce may be established, Castille availed itself of none of these procedures.

Accordingly, it was concluded that Castille failed to establish, by a preponderance of evidence, the necessity for, or the actual dumping of, the onions; therefore, Castille was found liable to LCC for the market value of the onions.

Ronnie Carmack
(Gates, Tennessee)
v.
Delbert E. Selvidge
d/b/a Selvidge and Sons Produce Company
(Houston, Texas)

51 A.D. 892, decided May 27, 1992

Ronnie Carmack (Carmack) sold and shipped 958 cartons of tomatoes to Selvidge and Sons Produce Company (Selvidge) on an open basis.

Of the 958 cartons delivered to Selvidge, the accounting listed 237 cartons sold, 516 cartons dumped, and 205 cartons unaccounted for.

In an open sale transaction, dumping of any portion of the produce must be substantiated by a dump certificate or other appropriate evidence.

The account of sale indicated 516 cartons of tomatoes had been dumped, but PACA pointed out that Selvidge did not provide any explanation or inspection certificate to justify the dumping. Consequently, reparation was awarded to the complainant.

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These summaries are not issued by the USDA, nor the PACA Branch, and should not be mistaken for an official government statement or release.