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UNITED STATES BANKRUPTCY COURT

WESTERN DISTRICT OF TEXAS
SAN ANTONIO DIVISION

In re:

Delta Produce, L.P.,

Debtor.







Case No. 12-50073-LMC

Chapter 11
Jointly Administered

RESPONSE TO SPECIAL PACA COUNSELS OBJECTIONS TO CLAIMS

Rio Queen Citrus, Inc., Eco-Farms Sales, Inc., Henry Avocado Corp. and
Gargiulo, Inc., trust beneficiaries of Delta Produce, L.P. (the Debtor) under the
provisions of the Perishable Agricultural Commodities Act, 1930, as amended
(PACA), 7 U.S.C. 499e(c), by and through their undersigned attorneys and pursuant
to the Order Establishing a Deadline to File PACA Trust Claims, for Procedures to
Resolve Those Claims, and for Appointment of Special PACA Counsel (the Claims
Procedure Order), file this Response to Special PACA Counsels Objections to Claims
(the Objections) [DE 159], stating as follows:
In the Objections, Special PACA Counsel lists no objections to the $35,218.04
claim of Rio Queen Citrus, Inc. [Claim 53]. The deadline for submitting objections was
March 20, 2012. See, Claims Procedure Order, paragraph 6(A). Thus, Rio Queen Citrus,
Inc.s claim in the amount of $35,218.04 is deemed a valid PACA trust claim. See,
Claims Procedure Order, paragraph 6(C).
Rio Queen Citrus, Inc.
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However, the claim of Rio Queen Citrus, Inc. was omitted from Special PACA
Counsels Summary of Review of PACA Claims filed March 22, 2012 [DE 163]. Rio
Queen Citrus, Inc. submits that the omission of its claim from the Summary of Review
of PACA Claims is improper; the Summary Review of PACA Claims must be corrected
to include the full amount of its claim of $35,218.04.
Special PACA Counsel objected to the claim of Eco Farms Sales, Inc. in its
entirety, for the alleged reason that the trust notice on the invoices was insufficient to
preserve trust benefits. On March 23, 2012, the undersigned and Special PACA Counsel
held a telephone conference regarding the objection, wherein the parties confirmed that
the proper trust language was stated on the invoices. Special PACA Counsel orally
agreed that Eco Farms Sales, Inc. preserved its rights to the PACA trust and that the
objection to its claim would be withdrawn, which was confirmed by Special PACA
Counsel by electronic mail on that date. Accordingly, Eco Farms, Inc.s claim is a valid
PACA trust claim and the Summary Review of PACA Claims must be corrected to
include the amount of its claim.
Eco Farms Sales, Inc.
Special PACA Counsel has objected to the claim of Henry Avocado Corp., to the
extent that the Debtor claims an offset for sums owed totaling $87,474.25. Henry
Avocado Corp. agrees that certain offsets should be applied to its claim against this
Debtor, Delta Produce, Inc., only. However, Henry Avocado Corp. states that the
Henry Avocado Corp.
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accurate amount is $80,727.25, or $6,747.00 less than the offset claimed by the Debtor.
See, Exhibit A.
To the extent that Special PACA Counsel seeks an offset in excess of $80,727.25,
the objection is improper and should be overruled.
Gargiulo, Inc., Eco Farms Sales, Inc. and Henry Avocado Corp.
Special PACA Counsel has objected to the inclusion of attorneys fees with the
claims of Gargiulo, Inc., Eco Farms Sales, Inc. and Henry Avocado Corp.

The Objections contains a general objection to the inclusion of attorneys fees
for purposes of the First Interim Distribution, citing as authority paragraph 15 of the
Claims Procedure Order. However, paragraph 15 states no such prohibition or
limitation; the paragraph simply sets forth a procedure for notifying each creditor of its
right to claim attorneys fees.
In fact, the objection is contrary to established case law on the issue of inclusion
of attorneys fees in PACA trust claims. The Second, Ninth and Eleventh Circuits have
held that if provisions for the payment of attorneys fees are included in the produce
sales contract, they are included as part of the sellers underlying PACA trust claim.
Country Best, 361 F.3d at 632; Coosemans Specialties, Inc. v. Gargiulo, 2007 U.S. App. Lexis
10520 (2d Cir., 2007); Middle Mountain Land and Produce, Inc. v. Sound Commodities, Inc.,
307 F.3d at 1223.
Gargiulo, Inc., Eco Farms Sales, Inc. and Henry Avocado Corp. all included
provisions on their invoices their sales contracts entitling them to recover attorneys
fees from the Debtor, in the event collection of their outstanding invoices became
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necessary. Thus, the attorneys fees incurred by each of these PACA trust beneficiaries
and included in the calculations set forth in their respective Proofs of Claim are part of
their underlying PACA trust claims and must be given the same priority for payment.
Special PACA Counsels objection to the inclusion of attorneys fees is improper and
should be overruled.
WHEREFORE, Gargiulo, Inc., Eco Farms Sales, Inc. and Henry Avocado Corp.
respectfully pray that Special PACA Counsels objections to their claims be overruled,
as outlined above.
Respectfully submitted on Monday, April 16, 2012.




MEUERS LAW FIRM, P.L.

/s/Steven E. Nurenberg
Steven E. Nurenberg
Pro Hac Vice
1
5395 Park Central Court
Naples, FL 34109-5932
Telephone: (239) 513-9191
Facsimile: (239) 513-9677
snurenberg@meuerslawfirm.com

Attorneys for Rio Queen Citrus, Inc., Gargiulo,
Inc., Eco Farms Sales, Inc. and Henry Avocado
Corp.









1
Steven E. Nurenberg is admitted pro hac vice in the jointly administered cases of In re Delta Produce,
Inc., Case No. 12-50073-LMC, In re Superior Tomato-Avocado, Ltd., Case No. 12-50074-LMC, In re Alted,
Ltd., Case No. 12-50075-LMC, and In re Staci Properties, Ltd., Case No. 12-50110-LMC.
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that this motion was filed with the Clerk of the Court and
served via the Courts CM/ECF system upon all attorneys of record and parties
receiving such service this Monday, April 16, 2012.

By: /s/ Steven E. Nurenberg
Steven E. Nurenberg

12-50073-lmc Doc#206 Filed 04/16/12 Entered 04/16/12 16:35:48 Main Document Pg 5 of
5
Exhibit A
12-50073-lmc Doc#206-1 Filed 04/16/12 Entered 04/16/12 16:35:48 Exhibit Pg 1 of 4
12-50073-lmc Doc#206-1 Filed 04/16/12 Entered 04/16/12 16:35:48 Exhibit Pg 2 of 4
pew 88425 DELTA PRODUCE MARKETING LP DELT
I
21!21825 !217/!213/!219 !217/03/09 .00 .00 .00
p
82882
210928 !218/03/!219 08/03/08 .!210 .!210 . 0!21
p
9298!21
21!21927 08/18/09 08/18/09 .!210 .00 .0!21
p
10544
210828 07/03/09 07/!213/!218 .!21!21 .!21!21 .!21!21
p
93143
21!21829 07/04/!218 !217/!214/!218 .!21!21 .!210 .!21!21
p
83187
21!21973 07/08/!218 07/06/09 .0!21 .00 .!210
p
1!21562
210874 07/!214/09 07/04/09 .0!21 .00 .00
p
1!21559
21!21875 07/04/!218 07/04/08 .00 .00 .!210
p
1!21558
21!21993 06/27/!219 06/27/09 .0!21 .0!21 .!210
p
93134
210998 06/28/09 08/26/08 .0!21 .!21!21 .0!21
p
1!21550
21 1!2101 !217/!217/!219 !217/!217/08 .0!21 . 0!21 .00
p
93202
21 1!2102 07/!213/!219 !217/!213/!218 .00 .00 .00
p
83171
21 10!216 07/01/09 07/01/08 .!21!21 .!210 .!210
p
4!21557
21 1!2155 07/07/08 07/!217/08 .0!21 .0!21 .0!21
p
1!21580
21 I 13!21 07/10/09 07/10/08 .0!21 .00 .00
p
10584
82,827 25 .00 82.827 25
op:;tfO ( M )ore. ( E )nd.
- ;; !)..{){). 00
<!D "1 d-l .d. '5
12-50073-lmc Doc#206-1 Filed 04/16/12 Entered 04/16/12 16:35:48 Exhibit Pg 3 of 4
Slankard Produce Co.,lnc
1500 S Zarzamora St
-
Invoice
.
.
#
San Antonio Texas 78207
PH (210)2233312 FAX (210) 2Z33364
Bill To
HENRY AVOCADO CORPARTION
P.O. BOX 300867
ESCONDIDO, CALIFORNIA 92030
P.O. No. Shipper#
9496 12391
Description
TRUCK LOAD OF HASS AVOCADOS
POSTIED
JAN 0 9 2012
REC'v -
APPIMllAAJ .
/lMT. PO. _______ _
DATEP!l _____ .
CK# ___ _
rsx:uM'IE __

GL#:=J-6 ool.J 3
Thank You For Business
1212612011 74389
Ship To
HENRY AVOCADO CORPARTION
P.O. BOX 300867
ESCONDIDO, CA 92030
Terms Ship Date Truck
Net30 1212612011 89
Quantity Rate Amount
1 1,800.00 1,800.00
Total
$1,800.00
12-50073-lmc Doc#206-1 Filed 04/16/12 Entered 04/16/12 16:35:48 Exhibit Pg 4 of 4
Received subject to the classifications and
At LAREDO, TX December 19,2011
riffs in effect on the date of 1he issue of the bill of lading.
From AZTECAVO,
Page 1 of1
Straight Bill of Lading .
Shipper's No. .... s,o,.3,_6 ___ _
Reference.
Entry No. !31-0152636-7
The below, in apparent good order, except as noted (contents and condition of contents of packages unknown), and des.,ed as lndicatin9 below, which said carrier
(The words carrier being Ullders!C!Od through! this contract as meaning any person or corporaljon in possession of the property under the contract/ agrees to carry to Jts usual place of delivery at said
destination, if on its own route, otherwise to deliver to another carrier on the route of said destination. It is mutually agreed, as to each carrier of al or any of said property over all or any portion of said
route to destination, and as to each paJtY. at any time Interested in all or any said pro, that every service to be pertonned hereunder shall be subject ro all the terms and conditions of the Uniform
Domestic Straight Bill of forth(1) in Official Souther, Western and lllinoJS Freight Classification in effect on !he date thereof, if this Is a rail-0" rail-water shipment, or (2) in the applicable
motor carrier c:fasslfic:atlon or tariff if this rs a motor carrier shipment.
Shipper hereby certffles that he is familiar with all the tenns and conditions of the said Bill of Lading, including those on the back seHorth In the classification' or tariff
the transportation of this shipment, and the said terms and conditions are hereby agreed to by the shipper and accepted for himself and his assigns.
Consigned to
Route
J.60 cs
480 cs
640 cs
320 cs
AZIECAVO
HASS 84
HASS AVOCADOS 4 8
HASS AVOCADOS 60
HAS S AVOCADOS 7 0
9496
p""""'39l
DIAN M DE MONTEMAYOR, LLC IS NOT
RESPONSIBLE FOR FREIGHT CHARGES
TEMPERATURE: 42F (CONTINUOUS)
PNC#ll5739.l23942
OF ORIGIN: MEXICO
741295
Shipper, Pur DELTA
42000 LBS
Agent, Foer
o
Subject to- section 7 of conditions
of applicable bill of lading
1
1f this
shipment to be delivered" m the
consignator, the.consignator shaH sign
thefollovving statemenl:
The carrier shall not make
delivery of this shipment without
paYment of the 'freight and all other
laWful charges.
(.Signature of consignor)
If the charges are to be P.aid,
write or stamp here. "To Be"
prepaid
**TO BE PREPAID**
Received. $ ===:<.:,..:;:-------
to apply in. prepayment of the
charges on the property described
hereon.
(Agent
Per

fhe amount prepaid)
Charges Advanced:
Shipper's imQrint in lieu of stamp;
net a part of Bi!J of Lading approved
Commerce
Gomm1ss1on.
Emergency contact :-
Hazafdous reponse_ guide book tendered
Yes No ,
D CXl