COOSEMANS SPECIALTIES, INC. v. GARGIULO

Docket No. 05-6962-cv.

485 F.3d 701 (2007)

COOSEMANS SPECIALTIES, INC., Plaintiff-Appellee, COOSEMANS SPECIALTIES, INC., Katzman Berry Corp., Katzman Produce, Inc., Robert Masha Sales, Inc. and Top Banana, L.L.C., Plaintiffs-Counter-Claimants-Appellees, v. Jack GARGIULO, Jerry Bader, Market Service, Inc., d/b/a Accounts Receivable Management Solutions, also d/b/a Arms, Top Banana LLC, State of New York and Grace Gargiulo, Defendants, Alan Gargiulo, Defendant-Counter-Claimant, Alan J. Gargiulo, Jr., Defendant-Intervenor-Defendant-Counter-Claimant, Philadelphia Produce Credit Bureau LLC, Defendant-Intervenor-Defendant-Intervenor-Plaintiff-Counter-Claimant-Appellee, Baldor Specialty Foods, "R" Best Produce, Inc. and Putnam Produce Inc., Defendants-Intervenors-Plaintiffs-Appellees, Supreme Cuts, East West Fresh Farms, LLC, AFL Fresh & Frozen, Inc., B.T. Produce Co., Inc., D'Arrigo Bros. Co. of New York, Inc., E. Armata Inc., Fierman Produce Exchange Inc., Fruitco Corp., Hunts Point Tropical, Inc., J & J Produce Co., Kleiman & Hochberg, Inc., Mike Siegel Inc., Morris Okun, Inc., Nathel & Nathel, Inc., Paul Steinberg Associates, Inc., Square Produce Co., Inc., Defendants-Intervenors-Plaintiffs-Counter-Claimants, M. Trombetta & Sons, Inc., Defendant-Intervenor-Plaintiff-Counter-Claimant, Alan J. Gargiulo, Sr., a/k/a Jack Gargiulo, and Dom's Wholesale & Retail Center, Inc., a/t/a Dom's Wholesale Market, Defendants-Intervenors-Defendants-Counter-Claimants-Appellants, Nara Bank, N.A., Intervenor-Plaintiff, Platinum Funding Corp., Intervenor-Plaintiff-Counter-Defendant.

United States Court of Appeals, Second Circuit.

Decided May 4, 2007.


Attorney(s) appearing for the Case

Paul T. Gentile, Gentile & Dickler, New York, NY, for Defendants-Appellants.

Jeffrey M. Chebot, Whiteman, Bankes & Chebot, LLC, Philadelphia, PA, for Appellee Philadelphia Produce Credit Bureau, submitting on behalf of the Plaintiffs-Intervenors-Plaintiffs-Appellees.

Louis W. Diess, III, McCarron & Diess, Washington, D.C., for Top Banana, LLC, Coosemans Specialties, Inc., Katzman Berry Corp., Katzman Produce, Inc., Robert Masha Sales, Inc. and Supreme Cuts, LLC.

Leonard Kreinces, Kreinces & Rosenberg, Westbury, NY, for AFL Fresh & Frozen, Inc., E. Armata, Inc., B.T. Produce Co., Inc., D'Arrigo Bros. Co. of New York, Inc., Fierman Produce Exchange, Inc., Fruitco Corp., Hunts Point Tropical, Inc., J & J Produce, Nathel & Nathel, Inc., Morris Okun, Inc., Mike Siegel, Inc., Square Produce Co., Inc., Kleiman & Hochberg, Inc., Paul Steinberg Associates, Inc. and Redi Fresh Produce, Inc.

Before: MESKILL, CARDAMONE and RAGGI, Circuit Judges.


MESKILL, Circuit Judge:

This appeal examines the extent of personal liability of a Perishable Agricultural Commodities Act (PACA), 7 U.S.C. § 499e(c), trustee controlling person for entering into a factoring agreement resulting in a loss of trust assets for the trust beneficiaries and whether attorneys' fees are appropriate.1

Defendants Dom's Wholesale & Retail Center, Inc. (Dom...

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