In a compelling legal dispute, a Pennsylvania-based produce supplier has taken legal action against a local grocery distributor for failing to pay over $40,000 for delivered goods. On June 11, 2024, Collotti & Sons, Inc. filed a complaint in the United States District Court for the Eastern District of Pennsylvania against Giordano’s Garden Groceries, LLC and its principals, Joseph P. Giordano Jr. and Marlene R. Giordano.
The case revolves around unpaid invoices for wholesale quantities of perishable agricultural commodities (Produce) sold and delivered by Collotti & Sons to Giordano’s Garden between December 28, 2023, and May 9, 2024. According to the complaint, despite receiving and accepting $40,564 worth of Produce from Collotti & Sons, Giordano’s Garden has failed to make any payments towards this debt. The plaintiff asserts that this failure constitutes a violation of the Perishable Agricultural Commodities Act (PACA), which mandates prompt payment for produce transactions.
Collotti & Sons claims that they became beneficiaries of a statutory trust under PACA upon delivering the Produce. This trust is designed to ensure payment to suppliers by holding all related assets in trust until full payment is made. The plaintiff alleges that Giordano’s Garden and its principals have not only failed to pay but have also dissipated these trust assets unlawfully.
"Defendants’ failure to make payment...is a violation of PACA and PACA regulations and is unlawful," reads the complaint. The plaintiff further accuses Joseph P. Giordano Jr. and Marlene R. Giordano of breaching their fiduciary duties by not preserving the trust assets as required under PACA regulations.
Collotti & Sons is seeking several forms of relief from the court: injunctive relief to prevent further dissipation of trust assets; enforcement of payment from the PACA Trust; damages amounting to $40,564 plus interest; costs; and attorneys' fees incurred due to this legal action.
The case has been assigned Civil Action No. 2:24-cv-02564-HB with Judge Harvey Bartle III presiding over it. Representing Collotti & Sons is attorney Mary Jean Fassett from McCarron & Diess law firm.