Court Opinion

ID: 9451931
Source: CourtListenerOpinion
Date Created: 2023-08-04 17:27:12.053933+00
Date Added: 2024-06-11T17:32:58.639307
License: Public Domain

McLAUGHLIN, Circuit Judge
(dissenting).
There is no indication in this record that the findings of fact by the Referee are clearly erroneous. Actually the facts not only fail to show intent by the parties to create a security interest in appellee but strongly point to the fact that the sales involved were recognized by the parties as an open account between them. The record fails to show any security interest of appellee attaching to the collateral under N.J.S. 12A:9-204, or that there was any proof of value given by Redisco to the bankrupt. It follows that Redisco had no valid lien against the Trustee of United Thrift Stores, Inc. and that the Referee properly denied Redis-co’s petition for reclamation. I would reverse the decision of the District Court and remand for entry of judgment in favor of the bankrupt and its Trustee.