JC Produce, Inc. v. Paragon Steakhouse Restaurants, Inc.

MEMORANDUM OF OPINION AND ORDER

Plaintiff JC Produce brings this action seeking to enforce statutory rights under the Perishable Agricultural Commodities Act (“PACA”). Plaintiff now moves for a preliminary injunction.

JC Produce is a dealer in perishable agricultural commodities. Paragon is an operator of steakhouse restaurants, under the names Hungry Hunter, Carver’s Restaurant, and Sheepherders Inn. JC Produce supplied Paragon’s restaurants with agricultural commodities for many years, until Paragon changed suppliers after April, 1999. (Pl.’s Mem. in Supp. of Mot. for Prelim.Inj. at 2.) JC Produce alleges that Paragon owes it more than $253,000 for shipments between January and April, 1999, and brings this action seeking to enforce its right to a statutory trust under PACA. JC Produce filed suit on July 30, 1999, and brought this motion seeking a preliminary injunction on August 5, 1999.

I.

To obtain a preliminary injunction a party must demonstrate either 1) a combination of probable success on the merits and the possibility of irreparable injury, or 2) the existence of serious questions going to the merits and that the balance of hardships tips sharply in its favor. See…