PACA Lawyers & PACA Claims Attorneys

The agricultural industry is vital to our economy, and ensuring fair business practices within it is essential. The federal Perishable Agricultural Commodities Act (PACA) was enacted to protect the interests of those involved in the trade of perishable goods, such as fruits and vegetables, by establishing fair-trade practices and providing a legal framework for resolving disputes.

As PACA attorneys, we understand the unique challenges faced by growers, distributors, brokers, and buyers in this industry. We have decades of experience in representing agricultural industry participants, and are dedicated to helping clients navigate PACA-litigation regulations, resolve disputes efficiently, and safeguard their business interests.

Located in Southern Arizona with offices in Oro Valley (Tucson) and Nogales, we serve clients throughout the United States.  We offer comprehensive PACA-related services, from enforcing payment rights to defending clients in complex disputes. If you’re in need of a PACA claims attorney, we invite you to contact us for a free consultation to discuss how we can support your PACA-related legal needs.

What is PACA?

The Perishable Agricultural Commodities Act (PACA) is a federal law designed to protect fair trading practices in the produce industry, covering fruits, vegetables, and other perishable goods.

Enforced by the U.S. Department of Agriculture (USDA), PACA establishes guidelines for transactions between buyers and sellers, payment terms, and protections for both parties in cases of non-compliance. PACA provides a trust mechanism that provides sellers with a priority security interest over other creditors if a buyer defaults on payment.  These priority and security interests are often critical in helping sellers to secure prompt payment for agricultural producers and suppliers.

Why PACA Matters for Agricultural Businesses

PACA serves as a safeguard for those dealing in perishable agricultural commodities, addressing key issues that arise in produce transactions. For example, when a buyer fails to pay for goods delivered, PACA allows the seller to claim a priority interest in the buyer’s assets, including inventory, accounts receivable, and proceeds from the sale of the goods. This PACA trust protects sellers, growers, and distributors by giving them a legal pathway to recover their funds, even if the buyer faces financial difficulties or bankruptcy.

As an experienced PACA law firm, our attorneys assist agricultural clients (including brokers) with compliance, dispute resolution, and enforcing their rights under PACA. We work closely with businesses to ensure they understand their rights and responsibilities under the act, helping them to minimize their interests and assert their rights under PACA.

Our PACA Legal Services

Our PACA-related services cover a wide range of legal issues.  We provide comprehensive support for all parties involved in the produce industry, including:

• Dispute Resolution: Whether dealing with a payment dispute, quality claim, or other contractual issue, we represent clients in negotiations, mediation, and litigation to secure fair outcomes.
• PACA Trust Enforcement: In cases of non-payment, we help sellers enforce their rights to PACA trust assets, prioritizing their claims over other creditors.
• Defense Against Allegations: For buyers facing PACA claims or allegations of non-compliance, we provide vigorous defense strategies, working to protect their assets and resolve issues efficiently.

If you are dealing with a PACA-related issue, contact us today at Bache Lynch Goldsmith & Mendoza for a free consultation with a PACA attorney.

Frequently Asked Questions About PACA

What Does a PACA Lawyer Do?

A PACA lawyer assists clients in the agricultural industry with navigating PACA’s requirements, resolving disputes, and enforcing payment rights. Our PACA attorneys provide legal counsel for both sellers and buyers, helping them understand their rights and responsibilities under the act. We also assist clients in filing claims, defending against allegations, and protecting their interests in PACA trust assets.

How Does the PACA Trust Protect Sellers?

The PACA trust is a legal mechanism that protects sellers of perishable goods. When a seller delivers goods to a buyer, the law creates a trust over the buyer’s assets—such as inventory and accounts receivable—to ensure that the seller has a means of recovering unpaid funds. If the buyer fails to pay, the seller has a priority claim on these assets, providing an additional layer of security. At Bache Lynch Goldsmith & Mendoza, we help clients enforce their PACA trust rights, ensuring they can recover funds effectively.

What Is The PACA Trust Enforcement Process?

When sellers aren’t paid promptly, PACA trust enforcement provides a structured pathway to recover unpaid funds. Here’s an overview of the PACA trust enforcement process for which our attorneys can provide representation and counsel:

• Preservation of Trust Rights: The seller must send a notice to preserve their PACA trust rights within 30 days of the payment due date. Missing this deadline can jeopardize your ability to claim the trust assets.
• Filing a Claim: Once the trust rights are preserved, our attorneys can assist in filing a formal claim with the USDA or pursue direct action against the buyer.
• Legal Action: If necessary, we represent clients in federal court to secure an injunction on the buyer’s assets, ensuring that funds or goods are set aside to satisfy the unpaid amount.
• Negotiation and Settlement: Many cases are resolved through settlement, where buyers agree to pay outstanding amounts to avoid further legal proceedings. Our team has years of experience negotiating favorable settlements for clients.
• Collection of Payment: Once payment terms are secured, we assist in ensuring clients receive their due amounts promptly.

We recognize the critical importance of PACA trust enforcement in protecting sellers from unpaid debts. Our team is prepared to guide you through each step, helping to secure the funds owed and maintain your business’s financial stability.

Protecting Your Business with PACA Compliance

Maintaining compliance with PACA is essential for businesses in the produce industry. Compliance not only helps prevent disputes but also strengthens a company’s position in enforcing PACA protections. As PACA lawyers, we work with clients to review and update their processes to ensure full adherence to PACA regulations, reducing the risk of costly legal issues.

What Should I Do if a Buyer Hasn’t Paid Under PACA?

If a buyer hasn’t paid for perishable goods as agreed, acting quickly is crucial. Sellers must file a notice of intent to preserve their PACA trust rights within 30 days of the payment due date. We can assist in filing this notice, preserving your priority claim on the buyer’s assets and pursuing payment through negotiation or legal action if necessary.

Who Needs a PACA License?

Anyone involved in buying or selling more than 2,000 pounds of perishable agricultural commodities in a day must obtain a PACA license. This includes growers, distributors, and brokers. We can assist with the PACA licensing process, ensuring that clients meet all regulatory requirements to operate legally and avoid costly penalties.

How Do I File a PACA Complaint?

If you encounter a breach of PACA standards, such as non-payment or delivery issues, you may file a complaint with the USDA. PACA complaints must be filed within nine months of the violation. As PACA claims attorneys, we help clients gather the necessary documentation, file your complaint, and represent you throughout the process to seek an effective resolution.

Common PACA Disputes and How We Help

PACA disputes can involve a variety of issues, and Bache Lynch Goldsmith & Mendoza is well-prepared to address these challenges on behalf of our clients. Common PACA disputes include:

• Non-Payment and Late Payment: Prompt payment is a core requirement under PACA. When buyers fail to pay, our attorneys take action to enforce PACA trust rights, helping sellers recover their funds efficiently.
• Quality and Condition Claims: Disputes over the quality of delivered goods are common in the produce industry. We represent clients in cases where goods are alleged to be substandard or spoiled, working to resolve the issue through negotiation or legal recourse.
• Breaches of Contract: Whether it’s a failure to deliver, refusal to pay, or disputes over contract terms, our PACA attorneys handle breach of contract claims with a focus on securing favorable outcomes for our clients.

Why Choose Bache Lynch Goldsmith & Mendoza PLLC for Your PACA Needs?

Choosing the right PACA law firm can make all the difference in how efficiently and effectively your disputes are resolved. At Bache Lynch Goldsmith & Mendoza PLLC, our PACA attorneys bring extensive experience in agricultural law, a deep understanding of PACA regulations, and a client-centered approach to every case. Here’s what sets us apart:

• Personalized Guidance: We take the time to understand your unique needs and goals, providing customized solutions tailored to your situation.
• Industry Knowledge: Our team has represented clients in diverse agricultural and produce sectors, allowing us to navigate industry-specific challenges effectively.
• Commitment to Client Success: We are dedicated to achieving the best possible outcomes for our clients, whether through negotiation, mediation, or litigation.
• Focus on Long-Term Relationships: We are committed to building lasting relationships with our clients, supporting them through their legal challenges and helping them grow their businesses.

Our agricultural attorneys understand the produce industry and the importance of swift action when disputes arise. Whether you need help enforcing PACA trust rights, defending against allegations, or navigating compliance issues, we’re here to support you every step of the way.

Reach out to our firm for a free consultation with a PACA attorney to discuss how we can assist you with your PACA-related legal matters.