(March 19) KANSAS CITY, Kan. — The officers of a closed Kansas City foodservice wholesaler have been added to a Perishable Agricultural Commodities Act repayment suit, according to an attorney representing suppliers who sold produce to City Market Produce Co., Kansas City, which closed Jan. 9.

City Market president Randy Barnes and vice president Kathleen Aylward were named in the suit, said Jason Read, a partner with Rynn & Janowsky, a Newport Beach, Calif., PACA law firm. Read represents two of the larger eight PACA claimants seeking $200,000 in repayment.

“Our allegations are that these two individuals were in a position to control PACA trust assets,” said Read. “On the basis that these individuals were officers or directors of a corporation during relevant time periods, they could be subject to personal liability for breach of PACA trust.”

Read said he added Barnes and Aylward to the suit to ensure complete repayment. Read earlier said he expects 80% repayment.

PACA claimants won a preliminary restraining order prohibiting a bank from distributing City Market’s assets, Read said. The March 4 court order dissolves a Jan. 28 temporary restraining order and preserves PACA trust assets.

The parties have agreed to place sales from City Market’s assets, including a cooler and other equipment, into a trust account until the matter is resolved, Read said.

Negotiations are continuing between the PACA trust claimants and City Market’s lawyer in liquidation of the firm’s hard assets. Read said he expects a settlement on the claims to be reached by early April.

A lawyer representing City Market did not return calls.