In re Georgetown Steel Co., LLC
United States Bankruptcy Court for the District of South Carolina
318 B.R. 352 (2004)
Progress Rail (defendant) delivered hot briquetted iron (HBI) to Georgetown (plaintiff) under an agreement retaining title in Progress Rail while Georgetown stored, used, and paid weekly for the HBI it consumed in steel processing, without Progress Rail ever filing a UCC financing statement; when Georgetown filed bankruptcy, it sought a declaratory judgment that its interest as debtor-in-possession was superior to Progress Rail's unperfected consignor interest, while Progress Rail argued the arrangement was actually a sale outside Article 9's consignment provisions.
Whether a transaction that involves the delivery of raw materials to a party that processes those materials into a final product and sells that final product meets the definition of a consignment under Uniform Commercial Code section 9-102(a)(20).