Irwindale, Sriracha factory in another battle as city files new lawsuit

IRWINDALE >>Two years after the city dropped a lawsuit against a large Sriracha factory in the city and tabled a resolution declaring the hot sauce factory a public nuisance, the city is suing the company for more than $400,000 in unpaid fees.

The city filed suit against Huy Fong Foods in Los Angeles Superior Court on Wednesday, alleging breach of a disposition and development agreement and various conditions, covenants and restrictions.

The standoff between the city and Sriracha creator David Tran began in October 2013 when the city filed a lawsuit against his iconic company. The battle sparked fears among Sriracha fans there would be a global shortage of the popular condiment.

The city first took action against Tran after residents complained about fumes seeping from the factory during chili grinding season, which they said bued their eyes and throats and forced Ithem to stay inside.

The new lawsuit suit alleges the company is not abiding by a 2009 agreement, in which Huy Fong Foods agreed to make 10 payments of $250,000 over 10 years in lieu of paying taxes to the city. The company paid the money the first three years, from 2012 to 2014, but failed to make the 2015 and 2016 payments, which are due each year in January, according to the complaint.

More to come