Clare Keijer is one of the few PACA lawyers in Florida that has experience in agricultural trust cases. PACA, which is the Perishable Agricultural Commodities Act, can create complex legal issues for produce companies and agricultural industries seeking payments for bad debt. A skilled PACA lawyer will be able to help you navigate through all the legal litigation with agricultural trust laws, regulatory compliance issues, and more.
PACA trust laws were put in place by the government to deal with the concern of produce buyers going into bankruptcy and not being able to pay their produce sellers. This creates a problem because it concerns the nation's food supply and often times, produce sellers would be among a large number of creditors looking for payment from these bankrupt produce buyers. Also, produce buyers were using the money from the produce to pay for other expenses instead of paying the seller first.
A PACA trust law gives the produce sellers superior creditor rights over other creditors, which means that this type of statutory trust was designed to help protect produce sellers that were not being paid for their agriculture yields. PACA law states that the produce buyer must maintain sufficient funds to pay their PACA trust claims as they are due. There is often times room for error as the buyer must prove which of their assets are not subject to PACA trust laws.
One of the unique items about a PACA trust agreement is that the produce sellers can file for a temporary restraining order if the buyer's PACA trust assets are being dissolved. Another important item to note is that if the buyer does not have sufficient funds to pay for the debt, the principals of the corporation can be held personally liable! This debt is also unable to be discharged during a bankruptcy, the debt remains with the buyer for their life (or until it is paid).
Clare Keijer of Keijer Law practices in the area of agricultural law, PACA, bankruptcy, estate planning, and Federal taxation, IRS representation and civil trials.
Keijer Law's offices are located in DeLand, FL and serving all of the Central Florida area: Daytona Beach, Melbourne, Windermere, Sanford, Oviedo, Casselberry, Mt. Dora, Longwood, Titusville, Leesburg, Clermont, Deltona, Eustis, Tavares, Brevard County, Lake County, Orange County, Osceola County, Orlando, Kissimmee, Winter Park, Lake Mary, Altamonte Springs, Seminole County and Volusia County.
Learn more about PACA Trust laws and what our PACA lawyers can do for you by contacting Keijer Law today.