Opinion

G and P Warehouse International LLC v. Abdallah Holdings, Inc.

Court
District Court, E.D. New York
Filed
Jul 2, 2025
Cited by
0 cases
Authority
More cited than 37.3%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF NEW YORK

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G and P Warehouse International LLC d/b/a

National Food Distributors,

ORDER

Plaintiff, 25-CV-02661 (DG) (PK)

-against-

Abdallah Holdings, Inc.; Waldwick Food Store Inc.

d/b/a Giant Farmers Market; Oakland Food Store

Inc. d/b/a Giant Farmers Market; Abdallah Food

Stores Inc. d/b/a Foodtown of New York; Conduit

Laundry Inc.; Joseph S. Abdallah; Abraham A.

Abdallah; Ahmad Sharif Abdallah; Mohammed

Abdallah; and Jason A. Doyle a/k/a Jason Boyle,

Defendants.

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DIANE GUJARATI, United States District Judge:

On May 13, 2025, Plaintiff G and P Warehouse International LLC d/b/a National Food

Distributors commenced this action seeking to enforce Plaintiff’s rights under the Perishable

Agricultural Commodities Act (“PACA”). See generally Complaint, ECF No. 1. Pending before

the Court is Plaintiff’s request for a preliminary injunction. See ECF No. 21.1

Plaintiff seeks an order enjoining and restraining Defendants Abdallah Holdings, Inc.

(“Abadallah Holdings”), Waldwick Food Store Inc. d/b/a Giant Farmers Market (“Waldwick”),

Oakland Food Store Inc. d/b/a Giant Farmers Market (“Oakland”), Abdallah Food Stores Inc. d/b/a

Foodtown of New York (“Foodtown”), Conduit Laundry Inc. (“Conduit”), Joseph S. Abdallah,

Abraham A. Abdallah, Ahmad Sharif Abdallah, and Mohammed Abdallah (collectively, the

1 Familiarity with the procedural history and background of this action is assumed herein.

At a conference held on July 2, 2025, Plaintiff and Defendant Jason A. Doyle orally stipulated

to dismissal of this action as against Defendant Doyle, without prejudice; thereafter, a written

stipulation was filed. See Minute Entry for July 2, 2025 conference; ECF No. 27.

“Defendants”) and their customers, agents, employees, officers, directors, successors,

subsidiaries, related entities, assigns, and banking institutions from taking any action to assign,

transfer, convey, spend, or dissipate PACA trust funds in the principal amount of $170,672.78,

except for delivery to Plaintiff’s counsel, and directing and requiring Defendants to account for

the assets and liabilities of Waldwick, Oakland, Foodtown, and Conduit (collectively, the

“Corporate Defendants”) and their related and subsidiary companies. See ECF No. 24 at 1-2

(proposed preliminary injunction order); see also ECF No. 24 at 4-6.

* * *

“A party seeking a preliminary injunction must demonstrate: (1) ‘a likelihood of success

on the merits or . . . sufficiently serious questions going to the merits to make them a fair ground

for litigation and a balance of hardships tipping decidedly in the plaintiff’s favor’; (2) a

likelihood of ‘irreparable injury in the absence of an injunction’; (3) that ‘the balance of

hardships tips in the plaintiff’s favor’; and (4) that the ‘public interest would not be disserved’ by

the issuance of an injunction.” Benihana, Inc. v. Benihana of Tokyo, LLC, 784 F.3d 887, 895 (2d

Cir. 2015) (alteration in original) (quoting Salinger v. Colting, 607 F.3d 68, 79-80 (2d Cir.

2010)). The party seeking injunctive relief “need only show a likelihood of success on the merits

of at least one of [its] claims.” See Home It, Inc. v. Wen, No. 19-CV-07070, 2020 WL 353098,

at *5 (E.D.N.Y. Jan. 21, 2020) (quotation omitted).

Having considered all of the filings to date in this action, including the declarations and

exhibits; having heard further from Plaintiff at the conference held on July 2, 2025, including

with respect to each of the requirements for obtaining a preliminary injunction and with respect

to the relationships among the Defendants; and in light of the lack of any opposition by

Defendants, Plaintiff’s request for a preliminary injunction, ECF No. 21, is GRANTED.

Based on the record before the Court, the Court finds that: Plaintiff is engaged in the

business of buying and selling wholesale quantities of produce in interstate commerce and is

licensed as a dealer under PACA; Defendants Oakland and Waldwick are engaged in the

business of buying wholesale quantities of produce in interstate commerce for sale at retail and

were at all relevant times licensed as dealers under PACA; Plaintiff sold to Defendants produce

that had moved in interstate commerce, worth the aggregate amount of $170,672.78, for which

Plaintiff has not been paid; Defendants accepted the produce received from Plaintiff without

protest; Plaintiff preserved its interest in the PACA trust in the amount of $170,672.78 by timely

delivering invoices to Defendants that contained the language required by PACA; Defendants

have refused to make full payment for the produce despite repeated demands; the Corporate

Defendants appear to be winding down operations and to be in the process of liquidating their

assets, including PACA trust assets belonging to Plaintiff; and Defendants have been served with

the relevant documents in this action and have not appeared or opposed the request for a

preliminary injunction. See Declaration of Yahaira Quiñones, ECF No. 6; Declaration of Johnny

Suarez, ECF No. 7; Declaration of Gregory Brown, ECF No. 5; see also Transcript of July 2,

2025 conference; see generally docket.

In light of the above, the Court concludes that the requirements for the issuance of a

preliminary injunction have been met. Plaintiff has demonstrated a likelihood of success on the

merits of its claims. Plaintiff has demonstrated a likelihood of irreparable injury in the absence

of an injunction – namely, further dissipation of PACA trust assets. Plaintiff has demonstrated

that the harm to Plaintiff that would result from a denial of the request for a preliminary

injunction substantially outweighs any harm to Defendants that would result from a grant of the

request. And Plaintiff has demonstrated that the issuance of the requested preliminary injunction

is in the public interest, particularly as PACA states an intention to protect the public interest, see

7 U.S.C. § 499e(c)(1).

Preliminary Injunction

IT IS ORDERED THAT:

Defendants, their customers, agents, employees, officers, directors, subsidiaries, related

entities, successors, assigns, and banking institutions are preliminarily enjoined, pursuant to Rule

65(a) of the Federal Rules of Civil Procedure, from alienating, dissipating, paying over, or

assigning any assets of the Corporate Defendants, their successors, subsidiaries, or related

companies during the pendency of this action or until further order of the Court or until

Defendants deliver to Plaintiff’s counsel the sum of $170,672.78 by bank check or wire transfer;

Within five business days of the date of this Order, Defendants shall supply to Plaintiff’s

counsel the following documents regarding the assets of the Corporate Defendants, their

successors, subsidiaries, and related companies: (1) most recent balance sheets and profit/loss

statements; (2) all accounts receivable records showing all funds collected by or on behalf of

Defendants in the last ninety days in addition to all records showing accounts receivable

currently outstanding, including names, addresses, amounts, and other documentation such as

invoices and account statements necessary for collection purposes; (3) all documents related to

funds owed to Defendants, including but not limited to funds owed on behalf of credit/debit card

processors and other electronic funds transfers due Defendants; and (4) all financial records, such

as income tax returns, bank account statements, checking account registers, wire transfer

confirmations, and cash receipt records, showing transfers of funds to or from the Corporate

Defendants in the last six months;

Defendants and/or any banking institutions used by Defendants shall, within two business

days of service of this Order, deliver any and all PACA trust assets held on Defendants’ behalf,

up to $170,672.78, to Plaintiff’s counsel, McCarron & Diess, 200 Broadhollow Road, Suite 207

Melville, New York 11747, to be held by Plaintiff’s counsel pending further order of the Court;

Any and all funds belonging to the Corporate Defendants, their successors, subsidiaries,

or related companies, in the possession of third parties, including all funds belonging to the

Corporate Defendants, their successors, subsidiaries, and related companies, on deposit at

banking institutions up to $170,672.78, shall be immediately delivered to Plaintiff’s counsel

pending further order of the Court;

Plaintiff’s counsel is hereby authorized and directed to collect all outstanding accounts

receivable of the Corporate Defendants, their successors, subsidiaries, and related companies,

with any such sums collected to be held by Plaintiff’s counsel pending further order of the Court;

and

Defendants shall take such steps as are necessary to preserve all the Corporate

Defendants’ books and records, whether electronic or otherwise, and are required to cooperate

with Plaintiff’s counsel’s reasonable efforts to effect collection of the Corporate Defendants’

accounts receivable and those of their successors, subsidiaries, and related companies.

Service

IT IS FURTHER ORDERED THAT Plaintiff shall serve this Order on Defendants and

file proof of service by July 7, 2025.

Bond

In light of the particular circumstances here, the Court waives the security requirement

set forth in Rule 65(c) of the Federal Rules of Civil Procedure.

SO ORDERED.

/s/ Diane Gujarati __

DIANE GUJARATI

United States District Judge

Dated: July 2, 2025

Brooklyn, New York

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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