Golman-Hayden Co. v. Fresh Source Produce, Inc.

27 F. Supp. 2d 723, 1998 U.S. Dist. LEXIS 18480, 1998 WL 822109
CourtDistrict Court, N.D. Texas
DecidedNovember 23, 1998
DocketNo. 3:97-CV-2930-X
StatusPublished
Cited by2 cases

This text of 27 F. Supp. 2d 723 (Golman-Hayden Co. v. Fresh Source Produce, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Golman-Hayden Co. v. Fresh Source Produce, Inc., 27 F. Supp. 2d 723, 1998 U.S. Dist. LEXIS 18480, 1998 WL 822109 (N.D. Tex. 1998).

Opinion

MEMORANDUM OPINION AND ORDER

KENDALL, District Judge.

Before the Court is Plaintiffs’/Intervenors’ Motion for Summary Judgment, filed September 23, 1998; Defendant Tomaneng’s Response, filed October 19, 1998; and Plaintiffs’/Intervenors’ Reply, filed November 3, 1998. After carefully considering the motion, briefs, supporting evidentiary submissions, and applicable law, the Court determines that no issues of material fact exist with respect to the issues raised in the motion for summary judgment. Therefore, Plaintiffs’/Intervenors’ Motion for Summary Judgment is GRANTED.

BACKGROUND

This ease was filed under the Perishable Agricultural Commodities Act of 1930 (“PACA”), 7 U.S.C. §§ 499a et seq. Plaintiffs Golman-Hayden Company, Inc. (“Gol-man-Hayden”) and Ideal Sales, Inc. (“Ideal”) and Intervenors Martin Brothers Produce (“Martin”), Roger’s Produce, Inc. (“Roger’s”), Bear Produce Company, Inc. (“Bear”) and Southmill Distribution, Inc. d/b/a South-mill Dallas (“Southmill”) are engaged in the business of buying and selling wholesale quantities of perishable agricultural commodities (hereinafter “produce”) in interstate commerce.

Defendant Fresh Source Produce, Inc. (“Fresh Source”) was a dealer and commission merchant as defined in PACA, with its principal place of business in Dallas. Defendant Edward Tomaneng (“Tomaneng”) owns 100% of the shares of Fresh Source. The most recent PACA license issued to Fresh Source by the U.S. Department of Agriculture indicates that Tomaneng is the sole owner and principal in Fresh Source. To-maneng is a doctor who practices medicine in San Marcos. Fresh Source ceased doing business on November 21, 1997 and filed for protection under Chapter 7 of the Bankruptcy Code on April 3,1998.

Plaintiffs filed this suit on December 3, 1997 to enforce the trust provisions of PACA, 7 U.S.C. § 499e(c). Plaintiffs/Intervenors allege that they sold and delivered to Fresh Source wholesale lots of produce collectively worth $271,527.70. If the funds from Fresh Source’s remaining accounts receivable were disbursed on a pro-rata basis to Plaintiffs/In-tervenors, a shortfall of $134,582.60 remains due and owing. Plaintiffs/Intervenors have [725]*725moved for summary judgment, asserting that Tomaneng was the sole principal, owner, officer and director of Fresh Source, in a position of total control over the dissipated trust assets, so that his failure to exercise control to preserve the trust assets is a breach of his fiduciary duty for which he is individually liable.

SUMMARY JUDGMENT

Summary judgment is proper when the pleadings and evidence illustrate that no genuine issue exists as to any material fact and that the movant is entitled to judgment or partial judgment as a matter of law. Fed. R.Civ.P. 56(c); Slaughter v. Southern Talc Co., 949 F.2d 167, 170 (5th Cir.1991). Disputes concerning material facts are genuine “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Douglass v. United Services Auto. Ass’n, 79 F.3d 1415, 1429 (5th Cir.1996) (en banc) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)). Substantive law provides that an issue is “material” if it involves a fact that might affect the outcome of the suit under the governing law. Burgos v. Southwestern Bell Telephone Co., 20 F.3d 633, 635 (5th Cir.1994); Anderson, 477 U.S. at 248, 106 S.Ct. 2505. The nonmovant is not required to respond to the motion until the movant properly supports his motion with competent evidence. Tubacex, Inc. v. M/V Risan, 45 F.3d 951, 954 (5th Cir.1995); Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). However, once the movant has carried his burden of proof, the nonmovant may not sit idly by and wait for trial. Page v. DeLaune, 837 F.2d 233, 239 (5th Cir.1988).

When a movant carries his initial burden, the burden then shifts to the nonmovant to show that the entry of summary judgment is inappropriate. Duckett v. City of Cedar Park, 950 F.2d 272, 276 (5th Cir.1992); Celotex, 477 U.S. at 322-24, 106 S.Ct. 2548. Although the nonmovant may satisfy this burden by tendering depositions, affidavits, and other competent evidence, “conclusory allegations, speculation, and unsubstantiated assertions are inadequate to satisfy the non-movant’s burden,” Douglass, 79 F.3d at 1429, as “the adverse party’s response ... must set forth specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e). Merely colorable evidence or evidence not significantly probative, however, will not defeat a properly supported motion for summary judgment. Anderson, 477 U.S. at 249-50, 106 S.Ct. 2505. Furthermore, a mere scintilla of evidence will not defeat a motion for summary judgment. Davis v. Chevron U.S.A., Inc., 14 F.3d 1082, 1086 (5th Cir.1994); Anderson, 477 U.S. at 252, 106 S.Ct. 2505.

Summary judgment evidence is viewed in the light most favorable to the party opposing the motion. Rosado v. Deters, 5 F.3d 119, 123 (5th Cir.1993); Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). In addition, factual controversies are resolved in favor of the nonmovant, but only when both parties have submitted evidence of contradictory facts, thus creating an actual controversy. Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir.1994) (en banc). In the absence of any proof, however, the Court does not assume that the nonmovant could or would prove the necessary facts. Id.

In making its determination on the motion, the Court looks at the full record including the pleadings, depositions, answers to interrogatories, admissions, and affidavits. Fed. R.Civ.P. 56(c); Williams v. Adams, 836 F.2d 958, 961 (5th Cir.1988). However, the Court’s function is not to “weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial.” Anderson, 477 U.S. at 249, 106 S.Ct. 2505.

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27 F. Supp. 2d 723, 1998 U.S. Dist. LEXIS 18480, 1998 WL 822109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/golman-hayden-co-v-fresh-source-produce-inc-txnd-1998.