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Burr Potato Co., Inc. v. IGH Enterprises, Inc.

United States District Court, W.D. North Carolina, Charlotte Division

May 19, 2017

BURR POTATO COMPANY, INC., et al Plaintiffs
v.
IGH ENTERPRISES, INC., t/a MITCHUM QUALITY SNACKS, et al Defendants

          J. Patrick Haywood, Rachel S. Decker, Louis W. Diess, Pro Hac Vice McCARRON & DIESS, Counsel for Plaintiffs.

          Christopher P. Raab, Counsel for Defendants IGH Enterprises, Inc. t/a Mitchum Quality Snacks and John R. Wilson.

          STIPULATION AND ORDER

          Frank D. Whitney Chief United States District Judge.

         THIS MATTER is before the Court on the filing of the parties' "Stipulation and Order" (Doc. No. 19), which the Court construes as a Motion for Entry of a Consent Order. For the reasons stated in the parties' filing (Doc. No. 19), it is GRANTED.

         Plaintiffs Burr Potato Company, Inc. ("Burr") and Dennis and Arden Ramseyer Farms, LTD ("Ramseyer"), by and through their attorneys, and Defendants IGH Enterprises, Inc. t/a Mtchum Quality Snacks ("Mitchum") and John R. Wilson ("Wilson"), hereby consent, agree, and stipulate to the following:

         1. Plaintiffs filed the instant lawsuit against Defendants Mitchum, John R. Wilson, Henry D. Pully, and Cheri Shipley[1] on May 9, 2017, pursuant to the trust provision of the Perishable Agricultural Commodities Act ("PACA"), 7 U.S.C. § 499e(c). The Court entered a Temporary Restraining Order on May 11, 2017. [D.E. 10.] A hearing on Plaintiffs' Motion for a Preliminary Injunction is scheduled for Monday, May 22, 2017. On May 18, 2017, Defendant Wilson, Mitchum's President, sole director, and sole shareholder, filed a declaration on behalf of Mitchum in which he did not deny the debt owed by Mitchum to Plaintiffs and asserted that new business deals are likely in the near future that will enable Mitchum to pay Plaintiffs. [D.E. 18.]

         2. Based on Wilson's representations and the Parties' mutual desire to avoid further costs, fees, and/or delay, and subject to the other terms and conditions of this Stipulation and Order, Mitchum hereby agrees to pay Plaintiffs the aggregate principal amount of $926, 908.79 (the "Payment Amount"), in the amounts and by the dates as follows:

a. The amount of $21, 000.00, on or before Friday, May 26, 207;
b. The amount of $10, 000.00, on or before Friday, June 2, 2017;
c. The amount of $3, 000.00, on or before Friday, June 9, 2017;
d. The amount of $3, 000.00, on or before Friday, June 16, 2017;
e. The amount of $3, 000.00, on or before Friday, June 23, 2017;
f The amount of $3, 000.00, on or before Friday, June 30, 2017;
g. The amount of $3, 000.00, on or before Friday, July ...

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