STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

J. G. CAMPBELL & DALE HODGE, )

)

Petitioners, )

vs. ) CASE NO. 82-0289A

)

L. J. CRAWFORD AND PEERLESS ) INSURANCE COMPANY, )

)

Respondents. )

)

RECOMMENDED ORDER

This is a Department of Agriculture and Consumer Services case in which J.

G. Campbell and Dale Hodge, producers of watermelons, are proceeding against L.

1. Crawford, an agricultural dealer, and Peerless Insurance Company, Crawford's bonding agent, for monies which Campbell and Hedge allege are owed to them by Crawford. This case is governed by Chapter 604, Florida Statutes, and the formal hearing was conducted pursuant to the provisions of Sections 604.21 and 120.57(1), Florida Statutes.

   
   

   The hearing was held in this matter pursuant to notice in Gainesville, Florida, on February 9, 1984, before Stephen F. Dean, assigned Hearing Officer of the Division of Administrative Hearings. This case arose when Campbell and Hedge filed a complaint with the Department of Agriculture and Consumer Services alleging that Crawford owed them $35,282.23 for watermelons which Crawford had taken delivery of. The Department was unsuccessful in mediating a settlement, Crawford denied the allegations of Campbell and Hedge, and the matter was referred to the Division of Administrative Hearings to conduct a formal hearing. Based upon the contentions of Crawford, the issues are as follows:

   
   

   1. Did Crawford take the watermelons on consignment?

      
      

   2. Did Campbell and Hedge agree that the price for the watermelons would be local market price less two cents per pound?

      
      

   3. Did Campbell and Hedge agree to accept as payment the price for which Crawford ultimately sold the watermelons less two cents per pound?

      
      

   4. If Crawford were liable to Campbell and Hedge, what was the amount of the nonpayment?

APPEARANCES

For Petitioners: C Valentine Bates, Esquire

234 South Main Street Gainesville, Florida 32601

For Respondent: L. J. Crawford, pro se

L. J. Crawford Route 3, Box 169

Lake City, Florida 32055

For Respondent: Did not appear and was not represented. Peerless Insurance Company

Petitioners submitted posthearing findings of fact, which were read and considered. Those findings not incorporated herein are found to be subordinate, cumulative, immaterial, unnecessary, or not supported by the evidence.

FINDINGS OF FACT

1. At all times relevant to this case, L. J. Crawford was a dealer in agricultural products, specifically watermelons. He sold the watermelons to Valhalla Produce in North Carolina.

   
   

2. Crawford contracted to purchase watermelons from J. G. Campbell and Dale Hedge, who are agricultural producers. The agreement of the parties was that the watermelons would be loaded on the truck by Campbell and Hedge's crew, the truck would be weighed before and after loading, and the price Campbell and Hedge would receive was local market price less two cents per pound.

   
   

3. At the first of the season, Crawford's settlement with Campbell and Hedge was in cash at the scale where the load was weighed or shortly thereafter. However, as the season progressed, the payments became less and less timely, until they stopped altogether.

   
   

4. Crawford admitted receiving the watermelons. However, he stated the watermelons were sold on consignment; that is, he paid Campbell and Hedge when he was paid. Crawford's assertion in this regard is not consistent with the facts, which indicate that the sale was F.O.B. in the field in Gainesville, at which time the title to the watermelons passed to Crawford and Campbell and Hedge were immediately entitled to their money. While it appears that Valhalla Produce was not paying Crawford for watermelons delivered to Valhalla by Crawford, and Crawford did have difficulties in meeting his financial obligations to Campbell and Hedge, this in no way affected Crawford's obligations to Campbell and Hedge.

   
   

5. Crawford eventually sued Valhalla Produce, and Campbell and Hedge joined in the litigation; however, they were dismissed when the court held that they had no interest because title had passed. Valhalla eventually settled the claim with Crawford for $9,000.

   
   

6. Based upon the records of Campbell and Hedge, which were the only records introduced at the hearing, Crawford owed Campbell and Hedge $35,282.23.

   
   

   CONCLUSIONS OF LAW

   
   

7. The Department of Agriculture and Consumer Services has authority to administer disputes between agricultural dealers and producers pursuant to the provisions of Chapter 604, Florida Statutes. This Recommended Order is entered pursuant to the provisions of Section 120.57(1), Florida Statutes. Specifically, this hearing was held pursuant to the provisions of Section

   604.21, Florida Statutes, which are applicable based upon the finding that L. J. Crawford is a dealer in agricultural products, and that Campbell and Hodge are agricultural producers as defined in Section 604.15, Florida Statutes. If the dealer denies the allegations, Section 604.21(4), supra, provides that the Department shall determine whether the allegations of the complaint have been established, enter its findings of fact accordingly, and thereupon enter its

   order adjudicating the amount of indebtedness due to he paid by the dealer to the complainant.

   
   

8. The facts reveal that Crawford contracted to purchase the watermelons for two cents less than the local market price, took delivery of the watermelons in Gainesville, took title to the watermelons in Gainesville, and became obligated immediately to pay the agreed upon price to Campbell and Hedge. Although Valhalla Produce, to which Crawford sold the watermelons, did not meet its financial obligations to Crawford this does not excuse Crawford from meeting his obligation to Campbell and Hedge. The record reflects, and the claim of Campbell and Hedge asserts, that Crawford owes them $35,282.23.

RECOMMENDATION

Having determined the allegations of the complaint to have been established, and having determined that L. J. Crawford owes J. G. Campbell and Dale Hedge the sum of $35,282.23, it is recommended that the Department of Agriculture and Consumer Services order Crawford to pay Campbell and Hedge jointly $35,282.23.

DONE and RECOMMENDED this 8th day of March, 1984, in Tallahassee, Leon County, Florida.

STEPHEN F. DEAN, Hearing Officer Division of Administrative Hearings The Oakland Building

2009 Apalachee Parkway

Tallahassee, Florida 32301

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 8th day of March, 1984.

COPIES FURNISHED:

C. Valentine Bates, Esquire

234 South Main Street Gainesville, Florida 32601

L. J. Crawford Route 3, Box 169

Lake City, Florida 32055

Peter H. Murphy, Esquire Peninsula Florida Building, Suite 800

200 SE First Street Miami, Florida 33131

Robert A. Chastain, Esquire Department of Agriculture and Consumer Services

Room 513, Mayo Building Tallahassee, Florida 32301

Glenn Bissett, Chief

Bureau of Licensing and Bond Room 418, Mayo Building Tallahassee, Florida 32301

W. Roderick Bowdoin, Esquire

327 North Hernando Street Post Office Drawer 1707 Lake City, Florida 32055

The Honorable Doyle Conner Commissioner of Agriculture

& Consumer Services The Capitol

Tallahassee, Florida 32301

Docket for Case No: 82-000289

Orders for Case No: 82-000289