Opinion ID: 678497
Heading Depth: 4
Heading Rank: 2

Heading: Identification of Goods

Text: 42 For the holding certificates to qualify as documents of title under the U.C.C., the goods to which the certificates refer must be properly identified. Under the U.C.C., the quantities of platinum referred to in the various holding certificates must be either identified or ... fungible portions of an identified mass. N.Y.U.C.C. Sec. 1-201(15) (emphasis added). Amoco argues that the holding certificates are not documents of title because they did not identify the platinum by pool or lot number or bar number. Amoco concedes, however, that identification of the platinum by pool or lot number or bar number would have been impossible. Under Amoco's analysis, therefore, it would have been impossible for Amoco to create documents of title in the platinum. Amoco also argues that the district court incorrectly relied upon Public Serv. Comm'n v. R.F. Gunkelman & Sons, Inc., 219 N.W.2d 853, 857 (N.D.1974) (holding that a document identifying sunflower seeds by quantity and grade was sufficient to constitute a document of title), for the proposition that a document of title need only identify goods by quantity and grade. Amoco attempts to distinguish this case by arguing that under the facts of Gunkelman the goods were identified not only by quantity and grade but by location. Amoco's Brief at 24. The identification of the goods in Gunkelman, however, was simply an incident of the fact that the issuer of the document had only one elevator. Gunkelman, therefore, did not expressly hold that a document of title must identify the goods by their location. If the U.C.C. is to be interpreted to allow the creation of documents of title for platinum used as catalyst by oil refineries, then identification by reference to the grade and quantity of the platinum must suffice. See Bank of New York, 831 F.Supp. at 263 (citing N.Y.U.C.C. Sec. 1-201(15), Official Code Comment (It is unforeseeable what documents may one day serve the essential purpose now filled by warehouse receipts and bills of lading.... The definition is stated in terms of the function of the documents with the intention that any document which gains commercial recognition as accomplishing the desired result shall be included within its scope)). Furthermore, Article 7 adopts a flexible approach to problems engendered by the commingling of fungible goods. N.Y.U.C.C. Sec. 7-207 provides, first, that different lots of fungible goods may be commingled and, second, that fungible goods so commingled are owned in common by the persons entitled thereto and the warehouseman is severally liable to each owner for that owner's share. In sum, under the U.C.C., a warehouseman may commingle different lots of fungible goods. We will not so interpret the identification requirement of N.Y.U.C.C. Sec. 1-201(15) as to preclude a bailee from exercising its right to commingle different lots of fungible goods. Conversely stated, we will not allow the fact that Amoco chose to exercise its right to commingle the platinum to permit Amoco to escape its obligation to deliver the platinum pursuant to the holding certificates. Accordingly, we find that Amoco's identification of the platinum by quantity and by grade met the identification requirement of N.Y.U.C.C. Sec. 1-201(15).