(United States Ninth Circuit) - In an action brought by produce growers under the Perishable Agricultural Commodities Act (PACA),brought by growers who sold their perishable agricultural products on credit to a distributor, thereby making the distributor a trustee over a PACA trust holding the perishable products and any resulting proceeds for the growers as PACA-trust beneficiaries, or the district court's summary judgment in favor of the defendant is affirmed where pursuant to Boulder Fruit Express & Heger biological Farm Sales v. Transp. Factoring,Inc., 251 F.3d 128 (9th Cir.2001), or a commercially reasonable factoring agreement removes accounts receivable from the PACA trust without a trustee's breach of trust,thus defeating the growers' claims.
Source: findlaw.com