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Collections and Disputes

The PACA complaint and reparation process

Parties may also file supporting briefs, and the examiner may permit the presentation of oral arguments, as well as proposed findings of fact, conclusions of law, and a proposed order ruling in your favor.

Following a hearing, the examiner will prepare a report in the form of a final order for the signature of the Secretary.

Secretary of Agriculture’s Order
After receiving the examiner’s report, proposed order, and other case materials, the Secretary of Agriculture will issue his/her order in the proceeding.

Unless the Secretary disagrees with the order as drafted by the examiner, the Secretary must move forward with the order as prepared by the examiner.

Besides obviously impacting the complainant’s claims, these orders may establish a precedent for future cases presenting the same or similar issues (many notable orders have been covered in the Reparation Report department in each issue of Blueprints).

Orders from the USDA can have considerable bite; when a PACA-licensed firm fails to pay an award, the USDA automatically suspends its license and the firm is prohibited from operating in the produce industry until the award is paid to the complainant’s satisfaction. While the firm’s license is suspended, its officers are also restricted and cannot be employed or affiliated with any other PACA licensee without the consent of the Secretary of Agriculture.

Whether you ultimately choose to proceed with an informal or formal complaint, both merit consideration before going through the time, effort, and expense of filing a lawsuit in state or federal court.

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Michael Erdman is an attorney in private practice in Chicago. He concentrates on representing businesses and individuals across the country in agricultural, insurance, real estate, and commercial matters.