David Tran began making chili sauces in 1975 in his native
Vietnam, where his brother grew chili peppers on a farm north of
Saigon. The case was scheduled for jury trial in
Los Angeles County Superior Court on November 3, 2014. A delegation led by Texas state representative
Jason Villalba toured the Irwindale factory and offered incentives to move operations to
Denton. In 2016, Huy Fong overpaid Underwood by $1.46 million for prepayment of estimated costs. According to Underwood's lawyer, Tran attempted just before this to hire away Underwood's
COO in order to form a new chili-growing concern, breaking the trust between Tran and Underwood. Huy Fong sued Underwood for not paying back this overpayment; Underwood countersued for
breach of contract and committing
fraud by intentionally misrepresenting and concealing information. In July 2019, the case was decided generally in favor of Underwood, with a California jury awarding the grower $10 million in punitive damages and $14.8 million to make up for lost contract revenue between 2016 and 2019. However, the jury also decided that Huy Fong's claim of overpayment was valid, so $1.46 million was deducted from the damages. In June 2022, Huy Fong Foods temporarily halted the production of the chili sauce. This decision was prompted by a severe shortage of chili peppers caused by a drought in
Mexico that affected the quality of the peppers. While production soon resumed in the fall, the company soon declared another "unprecedented inventory shortage" in April 2023, offering no estimate as to when this shortage might be resolved. An August 2023
CNBC special program claims that the shortage was caused by Huy Fong switching pepper suppliers, as Underwood still has production capacity (land, irrigation, processing) for the needed peppers. In April 2024, the company told customers it had halted production of all its products until September as its chili harvest was too green. == Composition ==