New Jersey Supermarket Chain Sued for Failing to Pay Food Wholesalers

On Monday, Ryeco, LLC. and T.M. Kovacevich – Philadelphia, Inc. filed a complaint in the Eastern District of California against Corrado’s Specialty Goods, Inc. for failure to repay over $400,000 in debt in accordance with the Perishable Agricultural Commodities Act (PACA).

The defendant, Specialty Goods, allegedly controls five supermarkets in New Jersey under the Corrado’s name. According to the complaint, between April 16 and July 28, Ryeco sold and delivered “in interstate commerce, wholesale amounts of Produce worth the aggregate amount of $296,023.00.” Between April 9 and May 14 of this year, Kovacevich also sold and delivered $163,086.00 worth of produce to the defendant. As a result, the plaintiffs “became beneficiaries in a statutory trust under PACA” which was designed to assure them that they would be paid for their items they sold to the defendant. Specialty Goods allegedly did not dispute the debt owed to the plaintiffs for $459,109. On May 26, the defendant said they sent the plaintiffs a check for $11,602. According to the plaintiffs, the check did not clear, meaning that no money has been paid for nearly half a million dollars worth of debt.

The plaintiffs are suing Specialty Goods and members of the Corrado family on the counts of failure to pay trust funds, failure to pay promptly, breach of contract, and several counts of unlawful dissipation of trust assets by a corporate official.

Ryeco and Kovacevich are seeking a payment of $459,109 plus interest, attorney’s fees and costs and other relief.

The plaintiffs are represented by McCarron & Diess.