United States Ninth Circuit

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S&H Packing and Sasles Co., Inc. v. Tanimura Distributing, Inc., 14-56059

In an action brought by produce growers under the Perishable Agricultural Commodities Act (PACA), brought by growers who sold their perishable agricultural products on credit to a distributor, thereby making the distributor a trustee over a PACA trust holding the perishable products and any resulting proceeds for the growers as PACA-trust beneficiaries, the district court's summary judgment in favor of the defendant is affirmed where pursuant to Boulder Fruit Express & Heger Organic Farm Sales v. Transp. Factoring, Inc., 251 F.3d 128 (9th Cir.2001), a commercially reasonable factoring agreement removes accounts receivable from the PACA trust without a trustee's breach of trust, thus defeating the growers' claims.

Appellate Information

  • Decided
  • Published 2017/02/27



  • United States Ninth Circuit