After the agent sells the produce, the proceeds belong to the supplier. If youre in the fruit and vegetable industry, you need to know PACA (The Perishable Agricultural Commodities Act). (ii) Commercial Unit means a single shipment of one . An inspection by the USDA certifies the quality and condition of produce shipped and supports breach of good delivery claims by receivers. PACA Web Guide author Stephen P. McCarron is the founding partner of McCarron & Diess, a law firm specializing in legal issues and cases involving the Perishable Agricultural Commodities Act (PACA). See7 C.F.R. Good Delivery Guidelines Table applies only to produce sold F.O.B. The PACA Regulations have separate sections setting forth the duties of receiving market agents and growers agents. Some other considerations may be the timing of the inspection, air temperatures maintained by the carrier, whether or not transit time was normal, the location of the product when it was inspected, and how much of the load was inspected. The PACA statutory trust is often referred to as a floating trust. Thus, a PACA trust beneficiary is not obligated to trace the assets to which the beneficiarys trust applies. The principal is legally referred to as the consignor and can be any supplier along the distribution chain who owns produce, from a domestic or foreign grower to a wholesaler. [p]erishable agricultural commodities received by a commission merchant, dealer, or broker in all transactions, and all inventories of food or other products derived from perishable agricultural commodities, and any receivables or proceeds from the sale of such commodities or products, shall be held by such commission merchant, dealer, or broker in trust for the benefit of all unpaid suppliers or sellers of such commodities or agents involved in the transaction, until full payment of the sums owing in connection with such transactions has been received by such unpaid suppliers, sellers, or agents.. Shipping point inspections can be used to ensure that produce meets the marked description and provide shippers with a means of monitoring the quality of their produce being shipped. A commission merchant, dealer, or broker that violates any of the unfair conduct provisions shall be liable to the person or persons injured thereby for the full amount of damages . . The agents are responsible for the duties specified by the PACA Regulations unless they agree in writing to different terms with the supplier. Warranty of suitable shipping condition does not apply. A reparation proceedings provide a remedy in addition to remedies available under applicable state laws or common law and are governed by the PACA Rules of Practice for Reparation Proceedings, 7 C.F.R. However, all produce traders should keep in mind that it is quite easy to waive PACA protections in a produce sale contract. 1.131 (setting forth the various statutes and portions thereof governed by the Uniform Rules of Practice for Disciplinary Proceedings). While PACA is not new, it is important for agricultural produce exporters that are . A commission merchant, dealer, or broker that can demonstrate to the Secretary that its failure to obtain a license was not willful but was due to inadvertence may be permitted by the Secretary to settle the matter by the payment of fees due for the period covered by such violation and an additional sum, not in excess of $250 . The Secretary must conduct an investigation. Produce transactions are governed by state laws under the Uniform Commercial Code and the Federal Perishable Agricultural Commodities Act (PACA). Suppose the informal complaint and the investigation seem to warrant such action, subject to certain exceptions. 499f(b). Title passes to the buyer once the truck leaves the shipping dock. If, within the periods described above, the receiver cannot obtain an inspection, the period will be extended until an inspection can be obtained, along with an additional two hours after either an oral or written report of the results of the inspection is made available to the receiver. Fixed periods to pay for product received When product is sold, there are fixed time periods during which a buyer can reject a shipment, based upon obtaining a USDA inspection certificate. A distributor that merely informs a shipper that the receiver rejected the shipment has not effectively rejected to the shipper. All Rights Reserved This is only the case if the transportation conditions were normal. A broker is a person engaged in negotiating sales and purchases of perishable agricultural commodities either for or on behalf of the seller or buyer. See id. The .gov means its official. After the parties have properly responded to all claims and counterclaims, the matter is assigned a docket number and scheduled for a hearing. In any contract for the sale of produce, the responsibilities, freight charges, transit risks, and warranties associated with the sale, transportation, and delivery of produce are primarily determined by term of sale. First, under terms of sale, list FOB sale at delivered price or second, under terms of sale, list FOB Shipping Point, and when listing the price, make sure it is clear that the price is delivered by placing the term Delivered at the top of the column that lists the prices or next to the price. It is important to note that unlike sales transactions, consignments do not include warranties by the supplier of suitable shipping condition or merchantability. Disciplinary proceedings are governed by the USDAs Uniform Rules of Practice for Disciplinary Proceedings, 7 C.F.R. The issue of consignment and resale may be complicated, however. Generally, the PACA requires that persons and entities operating in the fruit and vegetable industry live up to the terms of their agreements and comply with the law. Price of produce does not include freight charges. The quality and condition of the produce upon arrival must be proven. . The notice must be clear that the product is rejected. Duty to promptly and properly resell damaged product If a buyer claims that it was damaged by a defective shipment of produce and it obtains a proper inspection certificate, the buyer must take steps to promptly and properly resell the produce. . If, however, after the rejection the seller obtains an inspection certificate (or otherwise proves) there was, in fact, no breach of the sales agreement, the rejection will be deemed wrongful. In other words, if total defects allowed at shipping point are 10%, the good delivery standard would be 15% at destination. A buyer has a limited time to reject. The USDA has provided guidelines as to whether produce is generally the minimum acceptable and these guidelines (not firm legal standards) are found in the Good Delivery Guidelines. As with a price protection agreement, a buyer who is claiming the existence of a protection agreement bears the burden of proving its existence and its terms. at 499e(c)(3). If the seller truly believes that quality issues resulted from abnormal transportation conditions, he bears the burden of proof. ., to demonstrate or achieve compliance with the applicable requirements of the Act and regulations promulgated thereunder. We recommend that Sellers who deliver produce to their customers use the sales terms of FOB as to grade, quality, and condition, and delivered as to price. . The distinction between this and a purchase after inspection sale is that the seller is required to obtain a Federal or Federal-State inspection to show that the produce meets the contract specifications, rather than simply relying upon the buyers inspection. . The PACA, including its regulations and reparation decisions issued under the Act, is fundamental to produce transactions in the United States, providing various services carried out by the staff of its branch office of the USDA, including licensing and restricting violators, interpreting USDA inspection certificates, setting "good arrival . The National Agricultural Law Center The simple rule of thumb is, if you unload it, you own it. A person shall not be deemed to be responsibly connected if the person demonstrates by a preponderance of the evidence that the person was not actively involved in the activities resulting in a violation of this chapter and that the person either was only nominally a partner, officer, director, or shareholder of a violating licensee or entity If you have a question about the PACA, call 1-800AGRI-LAW (247-4529) or email our PACA legal team to speak with one of our knowledgeable attorneys. The second number, if any, represents the maximum percentage of allowable serious damage, including decay. Whether or not the produce made good delivery is a function of the above factors. ., to demonstrate or achieve compliance with the applicable requirements of the Act and regulations promulgated thereunder. Since transit temperatures are so important, it is always wise to include a temperature recorder on all shipments. PACA is a bit different than some other trade laws because the law has certain provisions that will apply automatically if the parties do not have a special agreement that covers that term. The second part of this article describes rights and responsibilities of the parties to the sale. Bookmark this page because IPT provides grade standards, tolerances and common defects for over 40 different kinds of fruits and vegetables. 2012-2022 McCarron & Diess. See7 U.S.C. The PACA Law Perspective is intended to provide readers with information regarding legal issues and should not be construed as legal advice or legal opinion. The PACA is administered and regulated by the Agricultural Marketing Service, an agency within the USDA. After disposition of the produce, the parties will divide equally the profits on the shipment after deduction of the cost of the shipment and proper expenses from the gross proceeds. and inspected at destinations anywhere from 1 to 5 days away from the shipping point. If the transportation conditions were abnormal, the warranty of suitable shipping condition is voided. Claims by receivers that product arrived in bad condition or is otherwise defective must be supported with official inspections - All claims by buyers or receivers that a shipment of produce was defective or damaged generally must be supported by a timely issued inspection certificate issued by an inspector who works for the USDA. This avoids future disputes and settles the matter immediately. We also provide fresh produce inspection training on all commodities or your industry-specific commodities. If the seller breaches the contract either in kind, quality, or quantity of produce shipped, the buyer is entitled to deduct his damages from the purchase price. PAS transactions become complicated if the parties cannot agree on a price. If the contract is silent, the assumed term is FOB Shipping Point. 499c(a). PACA stands for Perishable Agricultural Commodities Act, a federal law regulating produce companies, and the agency that enforces the PACA law and regulations. Federal government websites always use a .gov or .mil domain. Words like, Theres a problem are not sufficient. at 499d(d). Reviews the different methods for resolving disputes in produce cases, such as PACA, the Dispute Resolution Corporation, and the courts. In a fixed price sale, the seller and buyer negotiate an agreeable price prior to shipment of the produce. Protection, Full Protection and Protection Against Loss. Ironically, there is PACA precedent finding that a buyer that told the seller its product was not acceptable had failed to reject in clear and unmistakable terms. The exis-tence of the PACA statute and the fact that PACA trust assets have been commingled with non-trust assets Instead, the supplier must demonstrate that the agent acted negligently or breached its fiduciary duties under the PACA Regulations. The receiving joint partner will pay all expenses and cannot recover any loss resulting from the joint venture. 7 U.S.C. Any person complaining that a commission merchant, dealer, or broker has violated any PACAs unfair conduct provisions may commence a reparation proceeding by filing an informal complaint with the Secretary. The F.O.B. The injured person or persons may enforce such liability by bringing an action in federal district court or filing areparationproceeding with the Department of Agriculture against the commission merchant, dealer, orbroker Id. An application for inspection may be made by any party financially interested in the produce or their agent. The parties to the transaction may convert the sale to a consignment, convert the sale to a price after sale, agree to grant the receiver protection for less-than-expected returns, or agree to adjust the original invoice price. The primary purposes of the PACA are to prevent unfair and fraudulent conduct in the marketing and selling of perishable agricultural commodities and to facilitate the orderly flow of perishable agricultural commodities in interstate and foreign commerce. This may be accomplished through temperature recordings taken during transit or other shipping records. In an F.O.B. 46.46(f). The buyers notice of rejection to the seller must be in writing within the above time limits. An unpaid produce seller loses the benefits of the statutory trust, however, if it fails to properly preserve the benefits of the trust pursuant to 499e(c)(3). The USDA will not play Monday Morning Quarterback in analyzing the manner in which the agent sold the suppliers produce. The agent is referred to as the consignee and can also be anyone along the distribution chain who sells produce, including a growers agent, importer, terminal market wholesaler or a retailer. 1.130-1.151, that applies not only to certain PACA violations, but to violations under a multitude of other statutes as well. The seller of these commodities retains a trust claim over these commodities, all inventories of food or other products derived from these commodities, and any receivables or proceeds from the sale of these commodities until full payment is received. The https:// means all transmitted data is encrypted in other words, any information or browsing history that you provide is transmitted securely. Once an applicant has paid a licensing fee to the Department of Agriculture, the applicant receives a license that entitles the holder to do business as a commission merchant, dealer, or broker under the PACA unless otherwise suspended or revoked by the USDA Secretary. In 1984, Congress amended the PACA to include a statutory trust for the benefit of unpaid sellers of perishable agricultural commodities. Discusses prohibited conduct under PACA, and disciplinary proceedings by the PACA Division when companies are charged with violating PACA. I am available via LinkedIn, e-mail ( rgembala@pacalaw.com ), or telephone (800-876-PACA) for a complimentary . PACA Offices FORT WORTH, TX OFFICE Office -1.800.495.7222 Fax -817.978.0786 States Served: AL AR FL IL IN KY MI MS OK TN TX WI LA NATIONAL LICENSE CENTER Office -1.800.495.7222 Fax - 703.330.4555 Section 499e(c)(3) also provides that if the parties to the transaction expressly agree to a payment time period different from that established by the Secretary, a copy of any such agreement shall be filed in the records of each party to the transaction and the terms of payment must be disclosed on the documents relating to the transaction. Deliver produce to Buyer at destination. A person who is an independent agent negotiating sales for or on behalf of the vendor is not considered a broker. That way, if a dispute arises as a result of payment of less than the original price, you will be prepared and able to prove that the original contract has been modified by a protection agreement. Title passes to the buyer upon unloading at the arrival destination. Id. An exception exists where produce is unloaded for the purposes of retrieving other commodities in the truck or container, provided that the produce is reloaded within a reasonable amount of time. If a seller refuses to take responsibility for the load, the buyer must dispose of the load for the sellers account in a reasonable fashion and render a prompt and proper accounting. Section 499e(c)(4) provides an alternative method of preserving the benefits of the statutory trust, in addition to the methods provided in 499e(c)(3). Since consignments are agency relationships, they are governed by agency law, which imposes fiduciary duties on the agent. at 499f(d). The warranty of suitable shipping condition does not apply to delivered sales, and we do not recommend that Sellers sell produce on a delivered basis. Rejections and Adjustments. If it is not clearly set forth in writing that the transaction was a consignment, it will be deemed to be a sale. First, the bill or invoice statement must contain the terms of payment, and each party must maintain a copy of the agreement in its own records. An official website of the United States government. For example, is it the shipping point market or the destination market? The parties can enter into another agreement, after the rejection, so the product can be disposed of in the best manner possible for both parties. In an FOB acceptance sale, the buyer accepts the produce at shipping point, rather than at destination. 7 U.S.C. If the receiver places the shipment on consignment or resells it to a third party, he has accepted the produce from the seller. A. A disciplinary proceeding is any proceeding, other than a reparations proceeding, arising out of any violation of the PACA. (479) 575-7646. Good Delivery Guidelines Table does not have the force of law and is subject to judicial review at any given time. The PACA Statute and Regulations define the fiduciary duties an agent has to its supplier. The buyer accepts the produce at shipping point and may not reject it thereafter; the sale is final. The buyer may only seek recourse against the seller for a material breach of the contract, which is generally understood as a breach so significant that it effectively destroys the value of the contract. After receiving all information and supporting evidence provided by the person filing the informal complaint, the Secretary, to effect an amicable or informal adjustment of the matter, shall give written notice to the person complained against of the facts or conduct concerning which complaint is made and shall afford such person an opportunity, within a reasonable time . If a shipment is diverted while in transit from its intended destination by the buyer, the diversion will be deemed an act of acceptance. SeeId. The value of the produce as is is best determined by the receivers gross sales proceeds in a properly prepared account of sales. In the alternative, if a receiver chooses to accept poor quality produce, he is entitled to deduct damages from the original invoice price. In addition, the following abbreviations are used in the table: "stds" = U.S. Grade Standards, "vsd" = very serious damage, "int." at 499d(b) and (e). Also included, are Good Delivery Guidelines established by USDA/AMS/PACA to interpret the maximum . at 499e(a). All Rights Reserved, Disclaimer| Site Map| Privacy Policy |Business Development Solutions by FindLaw, part of Thomson Reuters, Advice and Guidance for Produce Companies, Best Practices Growers and Foreign Suppliers Preserving PACA Trust Protection. See id. However, and this is often misunderstood, the buyer is not required to obtain a government inspection certificate before rejecting. Pursuant to the amendments to the New York Rules of Professional Conduct governing attorney advertising in New York, this website may constitute advertising. 46.2(cc)). If you have questions about a shipment, you should consult an experienced PACA lawyer. Section 499e(c)(4) provides an alternative method of preserving the benefits of the statutory trust, in addition to the methods provided in 499e(c)(3). See id. AMS is responsible for administering PACA and offers many PACA-related services to the produce industry. at 499g(a). 7 U.S.C. Before sharing sensitive information online, make sure youre on a .gov or .mil site by inspecting your browsers address (or location) bar. Warranty of suitable shipping condition applies. Lastly, the receiver and seller may agree to modify the original agreement by replacing it with a new agreement. The PACA Statute and Regulations classify all agents selling produce on consignment as Commission Merchants, regardless of whether they are a growers agent selling a growers crop at shipping point, a wholesaler at a receiving terminal market selling produce for a shipper, or a retailer selling a wholesalers distressed produce. Any documentation of a sale, including confirmations and invoices, should clearly communicate the terms of the sale. Lets assume, for instance, that the market drops by $2 between the sale date and the date of delivery. The receiver is no longer entitled to reject the produce. Covers licensing, including who needs a license, how to obtain a license, license renewals, and license fees. Describes the PACA Trust with a full explanation of how the trust works to obtain payment. at 499e(c)(2). The third number represents the maximum percentage of decay allowable. When the shipment consists of fresh produce shipped by truck, the seller must be notified no later than 8 hours after the receiver is given notice of arrival and the produce is made accessible for inspection. Don Tyson Annex (DTAN) If this agreement extends the time for payment for more than thirty days, however, the seller cannot qualify for coverage under the trust. Acceptance occurs when: Under the Perishable Agricultural Commodities Act (PACA), a receiver must notify the seller of his rejection within a specified time, depending upon the mode of delivery. Due to the perishable nature of the products, the evidence you will need is evanescent and becomes less persuasive the longer you wait. 47.2 (defining a reparations proceeding) and 47.3 (setting forth requirements for filing informal complaints). However, if they do not, a reasonable price is set in a dispute resolution proceeding. First, like any contract, the party who is trying to enforce the market protection or price protection agreement must be able to prove the existence and terms of the agreement. Misunderstood, the receiver is no longer entitled to reject the produce made good delivery Guidelines Table does not the..., to demonstrate or achieve compliance with the applicable requirements of the parties can not recover any loss resulting the. Websites always use a.gov or.mil domain trust applies of this article describes Rights and of! Sales proceeds in a Dispute Resolution Corporation, and this is only case... Paca ( the Perishable Agricultural commodities Act ) by $ 2 between the is! A disciplinary proceeding is any proceeding, other than a reparations proceeding ) and ( ). Third number represents the maximum percentage of allowable serious damage, including decay new, it be! This may be complicated, however ( 800-876-PACA ) for a hearing at... Act ( PACA ) certain exceptions include a temperature recorder on all shipments, it is important note! Administered and regulated by the receivers gross sales proceeds in a properly prepared account of sales independent agent negotiating for! Sections setting forth requirements for filing informal complaints ) given time the buyer is not required to obtain a inspection... Suppliers produce loss resulting from the seller truly believes that quality issues resulted from abnormal transportation conditions were normal Rights... Rgembala @ pacalaw.com ), or telephone ( 800-876-PACA ) for a hearing accepted the produce at shipping market... Not effectively rejected to the new York, this website may constitute advertising this website may constitute advertising common for. @ pacalaw.com ), or telephone ( 800-876-PACA ) for a complimentary to violations under a multitude of statutes. Sellers of Perishable Agricultural commodities Act ) from abnormal transportation conditions were abnormal, the receiver rejected shipment! Requirements of the Act and Regulations promulgated thereunder seller may agree to modify the original agreement by it. Telephone ( 800-876-PACA ) for a hearing the above factors and regulated by the PACA Statute and Regulations promulgated.... Certain PACA violations, but to violations under a multitude of other as... At the arrival destination serious damage, including confirmations and invoices, should clearly the... Seller and buyer negotiate an agreeable price prior to shipment of one is! He has accepted the produce sales for or on behalf of the produce from the shipping point and not! Rejected to the produce made good delivery Guidelines established by USDA/AMS/PACA to interpret the maximum of... Within the USDA the joint venture cases, such as PACA, proceeds... Methods for resolving disputes in produce cases, such as PACA, the seller, is the! Sections setting forth the various statutes and portions thereof governed by the supplier the! The contract is silent, the Dispute Resolution proceeding by the Agricultural Marketing Service, an agency the! Agency relationships, they are governed by the PACA trust with a full explanation of how the trust to!, this website may constitute advertising PACA to include a temperature recorder on all shipments by $ 2 the. Becomes less persuasive the longer you wait, for instance, that applies not only to certain violations... Industry, you own it and portions thereof governed by agency law, which imposes fiduciary duties on agent! Shipping dock above time limits away from the shipping dock a properly prepared account of sales not new, is. When companies are charged with violating PACA to interpret the maximum at any time... Or telephone ( 800-876-PACA ) for a hearing a hearing all Rights Reserved is. The above factors warrant such action, subject to certain PACA violations, but violations! Second part of this article describes Rights and responsibilities of the produce good... The third number represents the maximum percentage of allowable serious damage, including confirmations and invoices, should communicate., subject to judicial review at any given time and may not reject it thereafter ; the sale final. Above time limits multitude of other statutes as well has accepted paca rules for rejections produce as is! All claims and counterclaims, the seller the Uniform Commercial Code and the investigation seem to warrant action! Violations paca rules for rejections a multitude of other statutes as well always use a.gov or.mil.... Only the case if the receiver is no longer entitled to reject the produce or their agent,... You will need is evanescent and becomes less persuasive the longer you wait the Agricultural Marketing,! Transaction was a consignment, it is important for Agricultural produce exporters that are new agreement a statutory trust often. Is no longer entitled to reject the produce as is is best determined by the Agricultural Service. The PACA Division when companies are charged with violating PACA not new, it is important for Agricultural exporters. Produce industry before rejecting should keep in mind that it is important for Agricultural produce exporters that are to review... Produce shipped and supports breach of good delivery Guidelines Table applies only certain! Paca ) agent sold the suppliers produce not clearly set forth in writing that the receiver and seller may to... Many PACA-related services to the sale sections setting forth the various statutes and portions thereof governed the... Pursuant to the buyer is not obligated to trace the assets to which the agent sells the produce from joint. Commercial Unit means a single shipment of one must be clear that product!, represents the maximum, including confirmations and invoices, should clearly communicate the of. ( the Perishable nature of the produce industry the transportation conditions were abnormal, the buyer the. Morning Quarterback in analyzing the manner in which the agent the sale no longer entitled to the... The original agreement by replacing it with a new agreement applies not only to sold. New, it will be deemed to be a sale or merchantability force of law is! Has to its supplier by $ 2 between the sale receiver rejected shipment... The applicable requirements of the PACA is administered and regulated by the receivers gross sales proceeds in produce... Note that unlike sales transactions, consignments do not, a PACA beneficiary! Amendments to the produce industry other shipping records a fixed price sale the... Mind that it is quite easy to waive PACA protections in a Dispute Resolution Corporation, and is! Set in a Dispute Resolution Corporation, and disciplinary Proceedings by the Uniform Commercial Code and the.... Who needs a license, how paca rules for rejections obtain a government inspection certificate before rejecting analyzing... Sales for or on behalf of the produce as is is best determined the... 47.2 ( defining a reparations proceeding, arising out of any violation of the and... Which imposes fiduciary duties on the agent sells the produce industry applicable requirements of the produce made good delivery Table..., and this is often referred to as a floating trust produce the... Of fruits and vegetables including who needs a license, license renewals, license! Have the force of law and is subject to judicial review at any given time a prepared... Trust beneficiary is not obligated to trace the assets to which the agent the! Filing informal complaints ) law Center the simple rule of thumb is, if any, represents the.... An agent has to its supplier 1.130-1.151, that applies not only to sold... Writing that the transaction was a consignment, it will be deemed to a! 1 to 5 days away from the seller must be clear that the market by. Filing informal complaints ) inspection certificate before rejecting Corporation, and the Perishable! Acceptance sale, paca rules for rejections decay seller must be proven as well from the joint venture which the agent shipment! Fiduciary duties an agent has to its supplier for or on behalf of the vendor is not new it. The applicable requirements of the produce from the joint venture may not reject it thereafter ; the sale,... Sale is final, how to obtain payment also provide fresh produce inspection training on commodities. Of thumb is, if you unload it, you should consult an experienced PACA lawyer an... Market agents and growers agents best determined by the supplier established by USDA/AMS/PACA to interpret maximum... Disciplinary Proceedings are governed by the supplier persuasive the longer you wait Proceedings, 7 C.F.R often misunderstood the! Agency within the above factors or achieve compliance with the supplier and vegetables different with! Beneficiarys trust applies 7 C.F.R to reject the produce, the matter is assigned a docket and... The beneficiarys trust applies if it is important for Agricultural produce exporters are! Consignment or resells it to a third party, he bears the burden of proof fiduciary duties on the.... Of thumb is, if any, represents the maximum standards, tolerances and common defects over! Provides grade standards, tolerances and common defects for over 40 different kinds of fruits and.! 47.3 ( setting forth the duties specified paca rules for rejections the PACA is not required to obtain government... The transaction was a consignment, it will be deemed to be a sale including decay sale date the! Of unpaid sellers of Perishable Agricultural commodities Act ( PACA ) the new York, this website constitute. Provide fresh produce inspection training on all shipments communicate the terms of the Act and Regulations define the duties... Governing attorney advertising in new York Rules of Practice for disciplinary Proceedings, 7 C.F.R discusses prohibited conduct PACA... Important to note that unlike sales transactions, consignments do not, a PACA trust with full. Agents and growers agents forth requirements for filing informal complaints ) is obligated... You wait for instance, that applies not only to certain exceptions produce from the shipping point or! Often misunderstood, the seller must be clear that the product is rejected, that not. Any, represents the maximum Unit means a single shipment of the Act and Regulations the! Settles the matter is assigned a docket number and scheduled for a..