Tijuanas Produce, Inc. v. Shorty's Produce, Inc
1:18-cv-00587
D. Colo.Mar 29, 2018Background
- Tijuanas Produce, Inc. sued Shorty’s Produce, Inc. and Eleno Cardenas seeking enforcement of a USDA/PACA order from October 6, 2017 requiring payment for produce sales.
- Plaintiff moved for a temporary restraining order (TRO) and preliminary injunction to freeze defendants’ proceeds from sales of fresh fruits and vegetables (alleged PACA trust assets).
- Plaintiff’s asserted urgency: defendants may dissipate PACA trust assets before a preliminary injunction hearing.
- Complaint alleges Shorty’s had notice of and participated in the USDA proceedings producing the PACA order.
- Plaintiff submitted a conclusory affidavit stating the trust assets are likely to be dissipated unless frozen, but alleged no changed circumstances since the USDA order.
- The court found the TRO request failed because plaintiff did not demonstrate likely irreparable harm prior to a preliminary injunction hearing; a preliminary injunction hearing was scheduled for May 24, 2018.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a TRO freezing PACA trust assets should issue | Tijuanas: immediate freezing needed because defendants likely will dissipate PACA trust assets | Shorty’s: (implicitly) no urgent threat shown; no changed circumstances warranting an emergency freeze | Denied — plaintiff failed to show likelihood of irreparable harm before a preliminary-injunction hearing |
Key Cases Cited
- RoDa Drilling Co. v. Siegal, 552 F.3d 1203 (10th Cir. 2009) (sets preliminary-injunction factors under Winter)
- Winter v. Natural Resources Defense Council, Inc., 555 U.S. 7 (2008) (movant must show likelihood of success and irreparable harm for injunctive relief)
- Beltronics USA, Inc. v. Midwest Inventory Distribution, LLC, 562 F.3d 1067 (10th Cir. 2009) (preliminary relief is extraordinary; right to relief must be clear)
- GTE Corp. v. Williams, 731 F.2d 676 (10th Cir. 1984) (injunctive relief is the exception, not the rule)
- United States ex rel. Citizen Band Potawatomi Indian Tribe of Oklahoma v. Enter. Mgmt. Consultants, Inc., 883 F.2d 886 (10th Cir. 1989) (describing preliminary injunction as drastic relief)