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December 13, 2018

Follow Regulatory Guidance (PACA and DRC) on Unpaid Romaine Contracts. Stand-up for Your Contract Rights.

In the November 26 Spotlight, Western Growers provided the guidance developed by the Perishable Agricultural Commodities Act (PACA) on contract payment responsibility connected to the romaine situation. Over the last several days, the Trade Practices Department of Western Growers has been contacted by numerous WG shippers who have shared situations where certain buyers in the U.S. and Canada are ignoring the PACA guidance and are demanding or simply taking monetary claims that exceed any contract responsibility for those shippers. 

Western Growers is strongly recommending to shippers that dialogue and conversation with buyers follow the long established PACA case law. It is also relevant to understand that it is expected that DRC in Canada follows those of PACA.  Now is the time to utilize the PACA as your template to affect a fair resolution to these outstanding contract situations.

It is imperative to remember this Government Guidance affected all in the supply chain, not just one segment. All parties share responsibility dependent on the original timing of the FDA/CDC notification. If you are uncertain of your rights and remedies, please contact Western Growers Trade Practices Department’s Matt McInerney at [email protected] 949-885-2263 or Bryan Nickerson at [email protected], 949-885-2392.