Ninth Circuit “Proceeds” to Clarify the Definition of “Goods”: The Proceeds of Goods are Goods

            In a soon to be published opinion, IPC (USA), Inc. v. Ellis (In re Pettit Oil, Co),[1] the Court of Appeals for the Ninth Circuit determined that the definition of “goods” as used in U.C.C. § 9-319(a) includes “proceeds– i.e., money and accounts receivable generated from the sale of goods.              Under bankruptcy law, if a consignee files for bankruptcy, any consigned “goods” in its possession become property of the bankruptcy estate unless the consignor has previously provided public notice of, and perfected its interest in, the goods.  In In re Pettitt Oil Co., the Court of Appeals considered whether U.C.C. § 9-319(a), which grants a consignee “rights and title to the goods,” also grants the consignee an interest in the proceeds of those goods that were generated prior to a bankruptcy filing.  In…

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