IPC (USA), Inc. v. Kathryn A. Ellis (In re Pettit Oil Company)

Case Type:
Case Status:
No. 17-60081, 2019 WL 1104662 (9th Circuit, Mar 11,2019) Published
Proceeds from consigned goods in consignee's possession on the petition date become property of the estate unless the consignor has perfected its interest.
Procedural context:
Debtor filed for bankruptcy. Trustee sought the value of the fuel, accounts receivable, and cash proceeds for the benefit of the bankruptcy estate. Bankruptcy court entered summary judgment in trustee's favor. Bankruptcy Appellate Panel affirmed.
Debtor was a distributor of bulk petroleum products. Debtor entered into a consignment agreement with IPC. When debtor filed for bankruptcy, it had in its possession not just IPC fuel but also proceeds from sold fuel that had not yet been remitted to IPC. IPC never filed a financing statement or otherwise perfected its interest in the consigned fuel, the accounts receivable, or the cash.
Fletcher, Bybee, Burns

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