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Napa Valley wine maker files suit against distributor over payment of fees

by Kaia

A legal dispute has emerged between a Napa Valley wine producer and a distributor, with Rocca Family Vineyards Inc. initiating a lawsuit against Da Due Compliance and Logistics. The lawsuit, filed in Napa County Superior Court on April 29, alleges that Da Due failed to remit payment totaling $162,240 for wine sold at Costco stores.

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Rocca Family Vineyards, a family-owned winery in south Napa County, asserts that Da Due placed three orders between July and November 2023 for a total of 675 cases of wine, but subsequently failed to fulfill payment obligations. According to court documents, Costco remitted payment to Da Due, which allegedly diverted the funds for unrelated expenses, leaving Rocca Family Vineyards unpaid.

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Furthermore, Da Due reportedly faces additional financial challenges, as indicated by a separate lawsuit filed by Idea 247 Inc., a business lender, for alleged non-payment of a $69,000 loan.

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Responding to inquiries, Douglas Martin Due, president and CEO of Da Due, acknowledged the company’s indebtedness to Rocca Family Vineyards and expressed regret over the situation. He cited financial difficulties exacerbated by the COVID-19 pandemic, noting challenges in meeting payment obligations.

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The legal dispute sheds light on Rocca’s allegations regarding Da Due’s financial standing, indicating concerns over its capitalization and accumulation of debts. The orders placed by Da Due for Rocca’s wine, totaling $149,460 in July, $7,200 in October, and $5,580 in November 2023, were intended for delivery to Costco stores across various locations.

Despite efforts to resolve the matter, including partial payments, Da Due’s financial struggles have hindered full repayment, prompting considerations of bankruptcy.

Rocca Family Vineyards, owned by Mary Rocca and Eric Grigsby, stands as a notable entity in Napa Valley’s winemaking landscape, underscoring the significance of this legal dispute within the region’s esteemed wine industry.

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