Court Opinion

ID: 9664895
Source: CourtListenerOpinion
Date Created: 2023-08-24 00:33:10.710969+00
Date Added: 2024-06-11T18:15:11.044374
License: Public Domain

Cynar, P.J.
(dissenting). I dissent.
The circumstances of this case warrant consideration of the other side of the controversy revolving around the interplay between UCC 2-702(2), 2-507(2) and a properly perfected security interest. The crux of the matter is whether or not the seller’s right to reclaim is subordinate to a perfected security interest. As the excellent majority opinion indicates, this continues to be an area of considerable discussion. With this in mind I would like to draw further attention to the controversy and note that a different result has been reached in other cases. Especially noteworthy in this instance is In re Emery Corp, 38 BR 489; 38 UCC Rep 834 (Bankr Ed Pa, 1984). In Emery the court noted that the definitions of purchase and purchaser in UCC 1-201 were not intended to apply to this situation. The court then reasoned that, if a security interest holder is not a purchaser as to a reclaiming seller under UCC 2-702, the seller could reclaim the goods.
A case like this one presents difficult problems and I appreciate the majority’s efforts in attempting to resolve the dispute between innocent parties as to who should bear a loss caused through the fault of neither. However, I believe the result reached by the Emery court would be the better one in this instance.