SAMPLE PACA REPARATION CASES BY SUBJECT MATTER 1 The following list of cases is provided by The PACA Division as a public service. Neither the PACA Division nor USDA makes any representation regarding the completeness of the list of selected cases. It is likely that there are additional cases that should be referenced and/or researched for any particular dispute or issue of concern. While the PACA Division will make an effort to keep this list of sample reparation cases current, the PACA Division does not guarantee on any given day that the list is complete or up to date with recent judicial decisions. This case listing has not been reviewed by the Office of General Counsel. The Agriculture Decisions and other citations listed are all publicly accessible through the following listed sources: (1) Office of Administrative Law Judges, Judicial Decisions http://www.oaljdecisions.dm.usda.gov/agriculture-decisions-publication (2) U.S. Government Publishing Office (“GPO”) https://www.gpo.gov/ (3) Federal Depository Library http://catalog.gpo.gov/fdlpdir/FDLPdir.jsp (4) The National Agricultural Law Center, University of Arkansas School of Law www.NationalAgLawCenter.org (5) www.lexisnexis.com (6) www.westlaw.com (7) Cornell University Law School (online database) www.law.cornell.edu (8) Local college and university law libraries (ex. The Ross-Blakley Law Library at the Sandra Day O’Connor College of Law at Arizona State University has Agriculture Decisions) 2 Table of Contents 1. ABANDONMENT ............................................................................................................... 13 2. ACCEPTANCE OF PRODUCE ........................................................................................ 13 a. DIVERSION ..................................................................................................................... 13 b. FAILURE TO REJECT IN A REASONABLE TIME ................................................. 14 c. UNLOADING OR PARTIAL UNLOADING ............................................................... 14 d. PLACING ON CONSIGNMENT................................................................................... 15 e. PRELUDES SUBSEQUENT REJECTION .................................................................. 15 f. RESALE ............................................................................................................................ 15 g. REVOCATION ................................................................................................................ 15 h. UNLOADING INTO WAREHOUSE OR COLD STORAGE .................................... 15 i. WHEN UNLOADING IS NOT ACCEPTANCE .......................................................... 16 3. ACCEPTANCE OF REJECTION ..................................................................................... 16 4. ACCORD AND SATISFACTION ..................................................................................... 16 a. BANK WAS AGENT FOR ACCEPTANCE OF CHECK .......................................... 17 b. CONDITIONAL TENDER NECESSARY .................................................................... 17 c. GOOD FAITH DISPUTE NECESSARY ...................................................................... 18 d. GOOD FAITH TENDER NECESSARY ....................................................................... 18 e. MUST BE PLEADED ...................................................................................................... 18 f. MUST BE TENDERED AS PAYMENT IN FULL ...................................................... 18 g. RETENTION OF CHECK ............................................................................................. 19 h. RETURN OF CHECK..................................................................................................... 19 i. UNLIQUIDATED AMOUNT ......................................................................................... 19 j. VERBAL COUNTERMAND OF EFFECTIVE ........................................................... 19 k. VOIDING OF ................................................................................................................... 19 l. WHERE PAYMENT DID NOT SPECIFY ACCOUNT FOR APPLICATION ....... 20 5. ACCOUNTS STATED ........................................................................................................ 20 6. ACCOUNTS OF SALE ....................................................................................................... 20 a. ASSIGNMENT OF LOT NUMBERS ............................................................................ 20 b. FAILURE TO SHOW DATES OF RESALE................................................................ 20 c. MUST BE MORE THAN SUMMARY STATEMENT ............................................... 20 7. ACT OF GOD ...................................................................................................................... 21 8. ADMINISTRATIVE PROCEDURE ACT ....................................................................... 21 9. AGENCY .............................................................................................................................. 21 a. APPARENT AUTHORITY ............................................................................................ 21 b. BAILMENT ...................................................................................................................... 23 c. DISCLOSURE OF PRINCIPAL .................................................................................... 23 d. EMERGENCY POWER OF AGENT AFTER TERMINATION OF AUTHORITY 25 e. EMPLOYEE OR AGENT OF PRINCIPAL ................................................................. 25 f. FIDUCIARY DUTIES ..................................................................................................... 25 g. GROWER’S AGENT ...................................................................................................... 26 h. LACK OF AUTHORITY ................................................................................................ 27 i. LIABILITY OF AGENT OR OTHER PARTY TO PRINCIPAL .............................. 27 j. PAYMENT - PROPER PARTY FOR ........................................................................... 28 k. PRIOR COURSE OF DEALING ................................................................................... 28 3 l. PROOF OF CONTRACT ............................................................................................... 29 m. PROOF OF EQUITABLE RELIEF .............................................................................. 29 n. RATIFICATION .............................................................................................................. 29 10. ALLOCATION OF PAYMENTS ...................................................................................... 30 11. ARBITRATION................................................................................................................... 30 12. ASSIGNMENT FOR BENEFIT OF CREDITORS NOT A DEFENSE ........................ 31 13. BOND REQUIREMENT FOR FOREIGN RESIDENTS ............................................... 31 14. BREACH OF CONTRACT ................................................................................................ 32 a. ANTICIPATORY REPUDIATION ............................................................................... 32 b. BY REASON OF BRAND ............................................................................................... 32 c. BY REASON OF GOVERNMENT STOP SALE ORDER ......................................... 33 d. MATERIAL BREACH ................................................................................................... 33 e. MISBRANDING .............................................................................................................. 34 f. OPEN SALE - BUYER’S BREACH BY SALE TO THIRD PARTY......................... 34 g. PART PERFORMANCE ................................................................................................ 34 h. TIMELY NOTICE REQUIRED .................................................................................... 34 15. BROKERS ............................................................................................................................ 35 a. ACCOMMODATION BROKERS ................................................................................. 35 b. ACTS INCONSISTENT WITH AGENCY RELATIONSHIP ................................... 35 c. APPARENT AUTHORITY ............................................................................................ 36 d. AUTHORITY ................................................................................................................... 36 e. BREACH OF DUTY ........................................................................................................ 36 f. COMMISSION ................................................................................................................ 38 g. CONFIRMATION OF SALE ......................................................................................... 38 h. DUTIES ............................................................................................................................. 38 i. STATEMENTS OF .......................................................................................................... 39 16. BURDEN OF PROOF ......................................................................................................... 39 a. ACCEPTANCE ...............................................................................................................