Recently, we published our Client Advisory, including an article on Consignments.  One of our colleagues asked:

Fine article. Question, if you don’t mind: Does the authenticated notification required to be sent by a consignor pursuant to UCC Sec. 9-324(b)(2) need to be sent to other consignors of goods provided to a common consignee for the filing consignor to retain a first priority security interets in its own consigned goods? I would not see why that would ne necessary but understand that is common (and burdensom) practice in the jewelry industry. Many thanks.

Without researching it, I think that, as 9103(d) makes a consognment a PMSI and as 9324(b)(2) sets out the steps to deal with a conflicting security interest in those types of collateral, one would have to follow 324 for the protections. To do otherwise, would allow “secret” PMSI’s against conflicting liens, something the Code gets away from. Haven’t seen a case and haven’t researched that point.

Anyone have different answer?

 

 

One of our top experts on Judgment Enforcement and collections, Nick Krawec, will be participating in a seminar on September 12 in Pittsburgh.  If you have an interest in this topic, Nick is one of the best!

Bob Bernstein

To Register: 

Seminar ID: 360408 Your priority code is: 306960. Please mention this code when registering. Register online at:

Lorman or By phone: Call our Customer Service Department at (866) 352-9539By e-mail:

customerservice@lorman.com

Our new blog allows us to have more interaction with our clients and colleagues, as well as with those interested in our topics. Because of the fields of law in which we practice (Creditors’ Rights, Bankruptcy & Restructuring, and Business Law) most of our posts and discussion will be around those topics. However, because we are people with lives beyond the practice, we’ll also allow ourselves to engage others on topics about life, family and the world. Naturally, our moderator (me at first) will have the right to limit, redirect or refuse postings and comments, but we will try to be as open-minded as possible along the way.

We are interested in your thoughts, ideas and comments. So, let the games begin…

Pittsburgh, PA – In December, U.S. Bankruptcy Judge Thomas P. Agresti appointed Robert S. Bernstein, Esq. of Pittsburgh’s Bernstein Law Firm, P.C. as Mediator in the dispute between Countrywide Home Loans and Ronda J. Winnecour, the Chapter 13 Trustee in Pittsburgh. After months of conferences and discussions facilitated by Bernstein, on July 15, the parties filed a Motion with the Court asking approval of a settlement.

Countrywide was disputing the claims that the company had lost or destroyed more than $500,000 in checks paid by homeowners in foreclosure from December 2005 to April 2007, Ms. Winnecour asked the bankruptcy court to impose sanctions against Countrywide, the nation’s largest loan servicer in almost three hundred separate bankruptcy cases. Judge Agresti appointed Bernstein as Mediator to assist the parties in coming to a resolution.

“Everywhere you look these days, Courts are talking about the value of mediation, lawyers are talking about the value of mediation and parties are talking about the value of mediation,” Bernstein said. “As an experienced bankruptcy lawyer, I’ve seen the value of having a neutral third party say things to your client (or the opposing party) about why and how the case might be settled.”

Mediation is a form of dispute resolution that does not allow the Mediator to make decisions for the parties. Rather, mediators help parties come to settlement agreements. “This was a particularly complex mediation,” said Bernstein. “With almost 300 cases and a particularly charged economic atmosphere, there were challenges. The parties were professional and co-operative, which made my job easier.”

Bernstein has more than thirty years experience in bankruptcy and business disputes. Mediation is one part of his law practice. He is a member of the Association for Conflict Resolution, an organization dedicated to the practice and public understanding of conflict resolution. Bernstein is the Managing partner of Bernstein Law Firm, a highly regarded and respected law firm located in Pennsylvania with a national reach in Bankruptcy & Restructuring and in Creditors’ Rights. For more information about the firm please visit: www.bernsteinlaw.com