Gebbers Farms Lawsuit: From COVID Deaths to Bankruptcy Sale

The Gebbers Farms lawsuit history spans state, federal, and bankruptcy courts: a record Washington workplace safety fine after two H-2A workers died of COVID-19 in 2020, a federal pesticide penalty in 2024, a commercial suit the company itself brought and lost over the sale of a rival fruit cooperative, and, in June 2026, a Chapter 11 filing by the Brewster Heights Packing & Orchards enterprise that has put the orchards up for court-supervised sale.

The COVID-19 Deaths That Triggered the Case

In the summer of 2020, more than 100 temporary workers at Gebbers Farms in Brewster, Washington tested positive for COVID-19. Two guest workers housed at the farm died within weeks of each other. Juan Carlos Santiago Rincon, 37, from Mexico, died in quarantine housing on July 8. Earl Edwards, 63, from Jamaica, died on July 31 after telephoning his wife to say his flu-like symptoms were improving.¹

The Washington State Department of Labor & Industries had already opened an investigation on May 28, 2020, after a worker complaint. That first probe produced a $13,200 fine and specific instructions on emergency housing rules, including a requirement that workers be separated into cohort groups of no more than 15.² A second investigation opened July 16 after anonymous worker calls, and on July 22 the state issued an Order and Notice of Immediate Restraint to force compliance.³

One anonymous caller reported that a cabin-mate had died, that the remaining roommates were never tested, and that they were then split into other cabins with other workers. Another said he believed hundreds of workers at the camp were infected and that the owners “did nothing to help the sick and just left them in their cabins to die.”³

The $2 Million State Safety Fine

On December 21, 2020, L&I cited Gebbers Farm Operations, LP for $2,038,200, which the agency described as one of the largest workplace safety fines in Washington state history.² The citation included 24 egregious willful violations, each carrying an $84,000 penalty: 12 for unsafe sleeping arrangements in temporary worker housing and 12 for transporting workers to the fields in groups larger than the rules allowed. Additional serious violations covered the failure to report a workplace fatality within the required eight-hour window.³

Investigators found that, even after the earlier $13,200 fine and specific written instructions, the farm continued to let workers use both top and bottom bunks without splitting them into the required cohort groups. Workers were not living, eating, or using facilities separately as the rules required, and kitchen and cooking areas lacked mandated barriers.⁴ L&I Director Joel Sacks said the conduct showed an intent to ignore the rules on agricultural worker housing and transportation.²

How the Case Was Settled

On August 4, 2021, L&I announced a mediated settlement. In exchange for investments that went beyond the minimum regulatory requirements, the original penalties of $2,051,400 were reduced to $10,000.⁴ Gebbers Farms did not admit guilt.⁵

The company agreed to spend more than $2 million across three areas:

Roughly $1.4 million on housing: demolishing a 1970s-era worker camp and replacing it with three new units, installing a cell tower for reliable communication, upgrading electrical systems to support washing machines and dryers, buying new mattresses, installing air conditioning, posting emergency signage for first responders, and building recreational facilities such as a soccer field, picnic tables, and benches.⁴
$513,000 on healthcare access, in the form of donations to area hospitals, health care centers, emergency medical services, and childcare and recreational centers used by workers and their families.⁶
$150,000 to fund a full-time safety officer for three years with the authority to stop any unsafe activity and to oversee worker health and safety training.⁴

The settlement had to be posted for employees to review for 10 days before the Board of Industrial and Insurance Appeals would formalize it.⁴

A Separate Federal Pesticide Penalty

Gebbers Farms also drew a federal enforcement action unrelated to COVID-19. After a July 28, 2021 inspection of three orchards on the Colville Indian Reservation near Brewster, the U.S. Environmental Protection Agency cited the company under the Federal Insecticide, Fungicide, and Rodenticide Act.⁷ Inspectors documented a sun-bleached, illegible safety poster, insufficient decontamination water for workers applying a pesticide that required protective eyewear, and improperly stored, unrinsed pesticide containers left on top of protective equipment. Gebbers agreed to pay $17,078. The EPA record also cited two prior state penalties for similar issues: a $900 Washington State Department of Agriculture fine in October 2019 for failing to provide decontamination supplies, and a 2020 notice of correction for another illegible safety poster.⁸

The Chelan Fruit Cooperative Suit

Not every Gebbers Farms lawsuit was defensive. In 2020, Chelan Fruit Cooperative was sold to International Farming Corporation and reorganized, with members’ equity interests converted into shares of a new holding company. A competing joint bid from Brewster Heights Packing & Orchards and Auvil Fruit had been rejected. BHPO sued, alleging a conspiracy to select the rival bid to capture the value of the SugarBee apple brand. Gebbers Farms, Inc. was listed as a plaintiff.⁹

The trial court dismissed six of BHPO’s eight claims with prejudice, including allegations of breach of fiduciary duty and claims under the Washington State Securities Act. The court found the relationship between the parties was contractual rather than fiduciary and that BHPO lacked standing to bring direct claims. The Washington Court of Appeals affirmed the dismissal in August 2024.⁹

Chapter 11 Bankruptcy and Sale

On June 4, 2026, Brewster Heights Packing & Orchards and 12 affiliated entities — collectively the Gebbers Farms enterprise — filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Washington. The group owed roughly $225 million to its two primary lenders, The Prudential Insurance Company of America and BMO Bank.¹⁰

CFO Brooke McGuire cited “severe headwinds” driving the collapse, including high labor costs, low industry returns, fluctuating tariffs, and climate change.¹⁰ The pressure had built for more than a year. Prudential triggered financial covenant defaults in late 2024, and BMO followed in May 2025. Both lenders entered forbearance agreements through the fall of 2025 that were contingent on an expedited sale. In late March 2026, BMO said it would allow no further use of cash collateral. An $8 million bridge loan from Backstop Ag Capital in early April 2026 sustained operations for only a few weeks.¹¹

A day after the filing, Legendary Fruit Company, a venture formed in 2025 by Chelan Fruit and Legacy Fruit of Wapato with Steve Clement as CEO, signed a letter of intent to buy substantially all of Gebbers’ business assets.¹² Legendary submitted a $231.3 million stalking-horse bid to set the auction floor. The deal covers more than 8,500 acres of orchards and exclusive production rights for the SugarBee, Rockit, Lucy Rose, and Lucy Glo apple varieties. If completed, the combined entity would produce about 12 million boxes of apples and 4.5 million boxes of cherries a year.¹³

Where Things Stand Now

At a June 9, 2026 hearing, U.S. Bankruptcy Judge Frederick Corbit approved a $25 million debtor-in-possession loan to keep the farm running. The company was described in court as “running on fumes,” owing $3 million to its 3,686 hourly employees and $300,000 to 56 salaried staff with payday approaching. Corbit also authorized $3.5 million for critical vendors supplying fertilizer, chemicals, irrigation equipment, and packing materials.¹⁴

The judge said the “social costs of closing would be high” for a company employing more than 3,700 workers in rural Eastern Washington and told the court he appreciated “the necessity of moving quickly to save something that’s very valuable for Eastern Washington.”¹⁴ Legendary is not the only interested buyer. Borton & Sons Inc. surfaced as a competing bidder on June 9 through attorney Mark Bailey, who told the court the company had not been informed of the financial collapse before the filing and was “preparing to bid.” Corbit assured Borton & Sons and other interested parties they would have a “fair opportunity to bid.”¹⁵

As of mid-June 2026, the orchards and packing operations continue to run, customer orders are being filled, and the company has secured financing to produce its 2026 crop. No auction date has been publicly set, and no winning bidder has been selected. The Gebbers family continues to operate separate ranching and timber companies in Okanogan County that are not part of the bankruptcy.¹²

1
Los Angeles Times. Coronavirus Northwest Farm Workers
2
Washington Department of Labor & Industries. L&I Fines Gebbers Farm Operations
3
Washington Department of Labor & Industries. L&I Cites Gebbers Farm Operations
4
Washington Department of Labor & Industries. L&I Settlement With Gebbers Farms
5
The Seattle Times. Gebbers Farms to Invest More Than $2 Million in Worker Housing, Health
6
Capital Press. Washington State Fruit Grower Settles Fine Over Farmworker Housing
7
Bloomberg Law. Gebbers Farms to Pay $17,000 for Exposing Workers to Pesticides
8
U.S. Environmental Protection Agency. CAFO Gebbers Farms FIFRA 10 2024 0059
9
Washington Courts. Brewster 9, LP v. Trout-Blue Chelan-Magi, LLC
10
Capital Press. Central Washington Fruit Giant Files for Bankruptcy, Selling Orchards
11
Eleven Flo. Brewster Heights Packing & Orchards Bankruptcy
12
The Wenatchee World. Gebbers Farms Sells to Legendary Fruit Amid Bankruptcy
13
PR Newswire. Legendary Fruit Company Enters Letter of Intent With Gebbers Farms
14
Capital Press. Judge Looks for Speedy Sale to Keep Gebbers Going
15
Your Source One. Second Suitor Could Outbid Legendary Fruit for Gebbers Farms