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, the Greensboro company behind the Chop Housed and Chop House Grille chainof restaurants, was sued last week for plus attorneys fees, by one of its food Inc. The suit — which also namew Streets & Avenues CEO Keithh Hall and Vice PresidentJoseph E. Warner III — statese that Greensboro-based Foster-Caviness sold and deliveref wholesale produce toStreets & Avenues between Apri 2007 and November 2008, but the restauranrt chain has failed to pay. The suit, filedf in U.S. District Court for the Middle District ofNorth Carolina, also says Streets Avenues violated the federal Perishable Agricultural Commodities Act, designer to protect agricultural producers.
Jim an attorney with , who is representing Street & Avenues, said his client is workinvg on apossible Foster-Caviness’ attorney, Nathan Duggins of in declined to comment. Under the federal act, those who purchasre goods from an agricultural producer are required to set asider proceeds from the sale of those goodse as part of a statutory The money cannot be used for other expensee until the producer hasbeen paid, said Patric k Haywood, an attorney with in Greensboro, who declined to comment on the lawsuit specifically, but has a backgrounde in agricultural law. The suit says that Streetss & Avenues failed to do that.
The accusationn of violating a federak agricultural commodities actis serious, because they are hard suit s for defendants to win; the act gives producersx strong powers to recover losses, including seizing assets, sincwe they cannot repossess perishable goods, Haywoor said. Talcott said Streets Avenues has also hired consultants to help the restaurant compan restructure to weatherthe recession, but said it was too earlg to say what that would involve. In Streets & Avenues settled a $558,000 lawsuirt in Superior Court in Guilfored County filed against it and 10 of its restaurantsw by SouthernFoods Inc. over unpaid billsa for food products.
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