A recent legal filing outlines a dispute between two companies over unpaid invoices for perishable agricultural commodities, raising concerns about compliance with federal trust regulations intended to protect sellers in the produce industry. The complaint was filed by Regal Pre-Pared Foods, Inc., an Illinois corporation, in the United States District Court for the Eastern District of Wisconsin on April 9, 2026. The defendants named are Best Bargains, Inc., a Wisconsin corporation based in Kenosha County, along with individuals Doug Helnore and Steve Wagner.
According to the complaint, Regal Pre-Pared Foods alleges that Best Bargains submitted multiple purchase orders in early 2025 for various perishable agricultural commodities. Regal fulfilled these orders and delivered the produce as requested. The company reports that all deliveries were accepted without objection regarding condition or quality. Between June 2 and July 25, 2025, Regal issued fourteen invoices totaling $241,548.02 to Best Bargains for these transactions.
The complaint states that each invoice included statutory language preserving Regal’s rights under the Perishable Agricultural Commodities Act (PACA), which establishes a trust over proceeds from sales of perishable goods until suppliers are paid in full. The invoices also specified terms requiring payment of interest on overdue balances at a rate of 1.5% per month (18% per annum) and reimbursement of attorneys’ fees if collection actions became necessary.
Regal asserts that five invoices remain unpaid as of the filing date, amounting to $75,705.00. Despite repeated demands for payment and partial payments made on one invoice (#R9191), Best Bargains allegedly failed to settle the outstanding balance. The plaintiff contends that all relevant sales were conducted in interstate commerce between parties located in different states—Regal in Illinois and Best Bargains in Wisconsin—and that both companies hold PACA licenses issued by the U.S. Department of Agriculture.
The legal action includes several counts against Best Bargains and its officers Helnore and Wagner: violation of PACA due to failure to maintain trust assets; conversion of PACA trust assets; failure to make prompt payment; enforcement of payment from PACA trust assets; common law breach of contract; intentional breach of fiduciary duty; and breach of a written settlement agreement reached between the parties on December 8, 2025.
The settlement agreement outlined a schedule for five monthly payments beginning December 19, 2025. While initial payments were made—some late—the March 2026 installment was returned due to insufficient funds after being sent by check through U.S. Mail. According to Regal’s filing, this default triggered provisions allowing immediate legal action against all defendants for recovery under both PACA and the settlement agreement terms.
Regal argues that defendants have dissipated or converted PACA trust assets by using proceeds from produce sales for purposes other than paying legitimate suppliers such as itself. The company requests judicial intervention including temporary restraining orders freezing defendant assets presumed subject to PACA trusts; preliminary injunctions preventing further dissipation; permanent injunctions ensuring preservation until full payment is made; detailed accountings tracing all relevant transactions; compensatory damages equal to unpaid balances plus interest at contractual rates; punitive damages where applicable; reimbursement for attorneys’ fees and costs incurred during collection efforts; administration and marshalling of PACA trust assets among claimants; disgorgement of unlawfully retained funds; and any additional equitable relief deemed appropriate by the court.
Attorney Michael H. Erdman represents Regal Pre-Pared Foods in this matter (Case No. 2:26-cv-602). Supporting documentation attached includes copies of past due invoices, an invoice summary, and the December 8 settlement agreement.
Source: 226cv00602_Regal_Pre_Pared_Foods_Inc_v_Best_Bargins_Inc_Complaint_Eastern_District_Wisconsin.pdf
