Beckman and tomato commission defend actions; continue plan to downsize
Beckman and tomato commission defend actions; continue plan to downsize
Amid a lawsuit claiming that its operations are unconstitutional (see story on page 1 of the Aug. 28 issue of The Produce News), the California Tomato Commission and its president, Ed Beckman, defended their actions in separate statements released the week of Aug. 28.
In addition, Mr. Beckman said that the board continues to march forward to a Sept. 19 meeting in which the downsizing of the commission's programs and a refocusing of its message are expected to be approved.
On Aug. 21, Gonzales Packing Co. in Gonzales, CA, filed a lawsuit in state court claiming that the commission was unconstitutional and that Mr. Beckman and the board misappropriated funds. The board also sued California Department of Food & Agriculture Secretary A.G. Kawamura for failing to perform the oversight role that the California Legislature imposed on the department when passing the legislation that authorized the establishment of the commission.
In its statement signed by the volunteer leadership, the commission stated what it believes to be at the center of the Gonzales lawsuit: the firm's opposition to the organization and its failure to pay its assessment for the past year.
The CTC said that based upon "the overwhelming industry support" for the commission voiced during the regularly scheduled continuation hearings earlier this year, CDFA recently renewed the program for another five years. According to the commission, only Gonzales Packing publicly opposed the commission in those hearings.
CTC believes "the dispute between the commission and Gonzales Packing arose last year at a time when the commission was leading an effort to address food safety issues raised by the U.S. Food & Drug Administration. Since then, Gonzales Packing has refused to pay their assessments and have demanded the commission act outside of the statutes that govern our actions related to the disclosure of certain documents."
The commission reiterated in its statement what its attorney, Katherine Meehan, told The Produce News the week of Aug. 21, namely that the commission has turned over thousands of pages of documents to Gonzales Packing and has complied with its statutory requirements in both releasing those documents and redacting sensitive sections that are required to be treated in such a manner.
Furthermore, the commission said that its efforts to meet with Gonzales Packing "to resolve the mutual concerns of all parties" have been rejected by the packer. "In fact, Gonzales Packing has refused, repeatedly, to avail themselves of the commission's statutory grievance procedures, which provide for a formal review of any complaint against the actions of the commission."
Speaking specifically of the allegations in the lawsuit, which does spell out specific examples of misappropriations of funds, CTC said that the "allegations in the complaint are misleading, misrepresent the actions of the commission, its directors and management, and only serve to detract from the very real issue - that Gonzales Packing has failed to pay their assessments as required by law."
In conclusion, the commission said it will "vigorously" defend its actions and indicated that it will soon file a cross-complaint.
Mr. Beckman, who has been singled out in the Gonzales lawsuit, told The Produce News that he was scheduled to meet with his own counsel later in the week and would have a statement after that.
However, he did e-mail a denial of all charges: "This lawsuit and the nature of the issues raised, whether against the commission or myself, as CEO, are not well taken, and I would expect that the respective legal counsels of the commission and my own counsel will address the issues raised in their respective responses and in any cross-complaints to be filed."
Though the lawsuit did require the executive committee of the board to discuss the matter at a special meeting on Tuesday, Aug. 29, Mr. Beckman said, "it is business as usual" at the commission.
He said that the board and the industry are continuing the ongoing discussions about restructuring the industry's programs.
He relayed that in June, the CTC board of directors "approved in concept a plan that will result in the downsizing of the program to where the focus is on production research, including pest and disease management."
Mr. Beckman said that the board is scheduled to take further action at its Sept. 19 meeting, and that action "is being driven by changes in the marketplace and not litigation."
In addition, Mr. Beckman said that the board continues to march forward to a Sept. 19 meeting in which the downsizing of the commission's programs and a refocusing of its message are expected to be approved.
On Aug. 21, Gonzales Packing Co. in Gonzales, CA, filed a lawsuit in state court claiming that the commission was unconstitutional and that Mr. Beckman and the board misappropriated funds. The board also sued California Department of Food & Agriculture Secretary A.G. Kawamura for failing to perform the oversight role that the California Legislature imposed on the department when passing the legislation that authorized the establishment of the commission.
In its statement signed by the volunteer leadership, the commission stated what it believes to be at the center of the Gonzales lawsuit: the firm's opposition to the organization and its failure to pay its assessment for the past year.
The CTC said that based upon "the overwhelming industry support" for the commission voiced during the regularly scheduled continuation hearings earlier this year, CDFA recently renewed the program for another five years. According to the commission, only Gonzales Packing publicly opposed the commission in those hearings.
CTC believes "the dispute between the commission and Gonzales Packing arose last year at a time when the commission was leading an effort to address food safety issues raised by the U.S. Food & Drug Administration. Since then, Gonzales Packing has refused to pay their assessments and have demanded the commission act outside of the statutes that govern our actions related to the disclosure of certain documents."
The commission reiterated in its statement what its attorney, Katherine Meehan, told The Produce News the week of Aug. 21, namely that the commission has turned over thousands of pages of documents to Gonzales Packing and has complied with its statutory requirements in both releasing those documents and redacting sensitive sections that are required to be treated in such a manner.
Furthermore, the commission said that its efforts to meet with Gonzales Packing "to resolve the mutual concerns of all parties" have been rejected by the packer. "In fact, Gonzales Packing has refused, repeatedly, to avail themselves of the commission's statutory grievance procedures, which provide for a formal review of any complaint against the actions of the commission."
Speaking specifically of the allegations in the lawsuit, which does spell out specific examples of misappropriations of funds, CTC said that the "allegations in the complaint are misleading, misrepresent the actions of the commission, its directors and management, and only serve to detract from the very real issue - that Gonzales Packing has failed to pay their assessments as required by law."
In conclusion, the commission said it will "vigorously" defend its actions and indicated that it will soon file a cross-complaint.
Mr. Beckman, who has been singled out in the Gonzales lawsuit, told The Produce News that he was scheduled to meet with his own counsel later in the week and would have a statement after that.
However, he did e-mail a denial of all charges: "This lawsuit and the nature of the issues raised, whether against the commission or myself, as CEO, are not well taken, and I would expect that the respective legal counsels of the commission and my own counsel will address the issues raised in their respective responses and in any cross-complaints to be filed."
Though the lawsuit did require the executive committee of the board to discuss the matter at a special meeting on Tuesday, Aug. 29, Mr. Beckman said, "it is business as usual" at the commission.
He said that the board and the industry are continuing the ongoing discussions about restructuring the industry's programs.
He relayed that in June, the CTC board of directors "approved in concept a plan that will result in the downsizing of the program to where the focus is on production research, including pest and disease management."
Mr. Beckman said that the board is scheduled to take further action at its Sept. 19 meeting, and that action "is being driven by changes in the marketplace and not litigation."
