Federal Court Orders H&H Coffee Investments to Pay $31 Million in Damages Over Undelivered Coffee Shipments
July 08 - 2025
Coffee Geography Magazine
A U.S. federal court has ruled that H&H Coffee Investments must pay more than $31 million in damages to Neumann Gruppe USA after failing to deliver hundreds of containers of Nicaraguan green coffee as contractually agreed. The decision, issued by Judge Jacqueline Becerra of the U.S. District Court for the Southern District of Florida, followed a bench trial in January where the defendant’s testimony was deemed largely unreliable.
The legal dispute originated in December 2022 when Rothfos Corporation, later acquired by Neumann Gruppe USA—a subsidiary of Germany’s Neumann Kaffee Gruppe—filed a lawsuit against H&H Coffee Investments. Court documents reveal that between September 2021 and March 2022, Rothfos paid approximately $21.7 million in advance to Miami-based CLR Roasters for shipments of Nicaraguan green coffee. The transactions were executed under standard contracts recognized by the Green Coffee Association.
Despite 49 purchase orders being issued, CLR—a now-defunct former subsidiary of Youngevity International—defaulted on the majority of its obligations, leaving nearly 147,950 bags of coffee undelivered. H&H Coffee Investments, wholly owned by Florida businessman Alain Piedra Hernandez, had guaranteed CLR’s contractual performance.
Further scrutiny of court records indicates that Piedra Hernandez was also a shareholder or operator in two Nicaraguan companies, Hernandez Export and Beneficio Solecafe, which served as key green coffee suppliers to CLR. During the trial, H&H attempted to argue that its financial guarantee was either invalid or capped at $1 million, a claim the court dismissed.
Judge Becerra ultimately ruled in favor of Neumann Gruppe USA, ordering H&H to pay $31.4 million in total damages, comprising $19 million in principal losses and approximately $12.3 million in accrued interest. The case, formally titled Rothfos Corp. v. H&H Coffee Investments LLC, was filed under docket number 1:22-cv-24000 in the U.S. District Court for the Southern District of Florida.
This ruling underscores the legal and financial risks associated with breach of contract in international commodity trading, particularly within the coffee industry, where advance payments and supplier reliability are critical to maintaining supply chain stability. The outcome also highlights the judiciary’s role in enforcing contractual guarantees, even when defendants attempt to limit their liability.
Neumann Gruppe USA, as the prevailing party, is expected to recover the awarded damages, though further legal steps may be required to ensure enforcement. Meanwhile, the case serves as a cautionary tale for businesses engaging in high-value commodity transactions, emphasizing the importance of due diligence and enforceable contractual safeguards.
The coffee industry, which relies heavily on trust and timely fulfillment of agreements, may see increased scrutiny of financial guarantees and supplier commitments in the wake of this decision. For now, the ruling stands as a significant legal victory for Neumann Gruppe USA and a costly setback for H&H Coffee Investments and its principal, Alain Piedra Hernandez.