In a notable victory for Western Growers member Del Mar Packing, LLC, the U.S. Department of Agriculture denied Respondent Melon Corp.’s motion to dismiss in a pending USDA PACA reparations case. The motion challenged the constitutionality of USDA’s long-standing administrative process for resolving disputes under the Perishable Agricultural Commodities Act (PACA).

The ruling allows Del Mar Packing’s claims, which includes reparations of over $350,000 to proceed through the PACA reparations forum and preserves an important enforcement mechanism relied upon by produce buyers and sellers nationwide. PACA’s administrative dispute process is designed to provide an efficient avenue for resolving payment and contract disputes in the perishable commodities industry.

A formal Complaint was filed by Western Growers’ Director of Membership, Bryan Nickerson in February 2025. The Respondent filed its Motion to Dismiss and Terminate Reparation Proceedings the following month. The matter was certified to the Secretary of Agriculture, underscoring the significance of the constitutional issues raised. In denying the motion, Acting Judicial Officer Channing Strother quoted extensively from the Complainant’s opposition brief prepared by Western Growers Senior Vice President and General Counsel Jason Resnick.

For produce industry participants, the decision is meaningful beyond this case. Had the challenge succeeded, it could have disrupted the PACA reparations system and forced parties into more costly and time-consuming court litigation. Instead, USDA’s order keeps intact a key forum that helps protect commercial confidence in the fresh produce supply chain.