Middle Mountain Land & Produce Inc. v. Sound Commodities Inc.

Appellant J.R. Simplot Company (“Sim-plot”) appeals the district court’s denial of its interest and attorneys’ fees claims against Sound Commodities (“Sound”). We consider whether the Perishable Agricultural Commodities Act (“PACA”), 7 U.S.C. § 499e(c)(2), as amended (2000 & Supp.2002), supports a contractual right to attorneys’ fees and interest as part of a PACA trust claim.

I

This is a PACA action for proceeds from the sale of agricultural products held in trust by Sound. 1 After the bankruptcy *1222 and liquidation of Sound, Simplot, an agricultural supplier, filed a PACA proof of claim in the Western District of Washington for amounts due on unpaid invoices, including outstanding attorneys’ fees and interest. Simplot based its entitlement to attorneys’ fees and interest on language included in each of the invoices that Sim-plot sent to Sound.

Because the assets of the statutory PACA trust were insufficient to cover all PACA claimants, the court-appointed receiver recommended a pro rata distribution of the funds to all PACA claimants. Additionally, the receiver objected to the portion of Simplot’s claim for attorneys’ fees and prejudgment interest and noted that…