Commercial Law Keyed to Lopucki
In re Oriental Rug Warehouse Club, Inc
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- Parties: Identifies the cast of characters involved in the case.
- Procedural Posture & History: Shares the case history with how lower courts have ruled on the matter.
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- Facts: What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case. Review the Facts of this case here:
Petitioner sells rugs and carpets at retail. Petitioner and Respondent entered into a “consignment agreement” whereby Petitioner took possession of Respondent’s rugs to resell them. In exchange, Petitioner agreed to pay a sum of money to Respondent and use the proceeds from the sale of the rugs to pay down its outstanding debt. Petitioner defaulted on that agreement. Respondent’s brother then repossessed the rugs that were supplied by Respondent. Petitioner took the proceeds from the sale into its general checking account and used funds from the account to purchase additional rugs. Petitioner filed for bankruptcy. Respondent filed a proof of secured claim in the amount of $64,243 representing the outstanding debt minus the value of the repossessed rugs. Petitioner objects.
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