A popular low-cost farmer’s market in Pompano Beach is being sued by two suppliers who claim the market did not pay for produce delivered over the summer.
The store is called Doug Specialties, but patrons might recognize it by the bright yellow sign out front that advertises $.99 Farmer’s Market.
Opened less than a year ago, it is located in an office park at 3480 NW 27th Ave., just east of the Festival Flea Market on Sample Road.
On Friday, Alabama-based Alex Kontos Fruit Co. filed a complaint in U.S. District Court in Fort Lauderdale, claiming that the store and its CEO, Douglas J. Habe, failed to pay $39,760 for two truckloads of tomatoes delivered on July 26 and 28.
Alex Kontos Fruit Co. is seeking $53,075, which includes interest, attorneys fees and costs of collection.
On Oct. 24, a Pennsylvania-based supplier, Race-West Company Inc., filed a complaint in the same court stating that Doug Specialities took delivery of a wholesale shipment of produce on July 25, then failed to pay the $26,100 cost.
On Dec. 4, the store made a partial payment of $10,000, leaving $16,100 owed, according to a Dec. 21 court filing by Race-West. The supplier is seeking a default judgment for the $16,100, plus $11,693 in interest, attorneys fees and “other costs,” the fling states.
The store was closed on Monday, though the presence of inflatable Christmas decorations and several empty display tables left outside of the front entrance indicates it recently had been open.
A cellphone number listed both on the store’s Google business page and Habe’s whitepages.com listing was not in service on Monday. Habe did not respond to an email sent to a Yahoo address listed on a whitepages.com search result.
Habe did not file a response to the Race-East lawsuit. It was unclear on Monday whether he has been served with the Alex Kontos lawsuit.
Both lawsuits accuse Doug’s Specialties of violating a 1930s federal law called the Perishable Agricultural Commodities Act (PACA), which puts fruits and vegetable suppliers at the front of the line of a dealer’s creditors.
The PACA law works by requiring dealers to hold delivered produce and any revenue derived from it in trust until full payment is made. Failure to maintain the assets in trust makes the trustee personally liable for the unpaid cost, Race-West’s suit states.
Doug Specialties has been the focus of enthusiastic social media posts, as well as criticism, since its opening.
Fans have praised the store’s wide selection, saying they found numerous fresh fruits and vegetables at prices much lower than at supermarkets.
Critics have mentioned that despite the exterior sign, a number of items for sale at the store cost more than 99 cents.
Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071, on Twitter @ronhurtibise or by email at rhurtibise@sunsentinel.com.