Bank Awarded Proceeds From Consigned Goods Sale

In Brief

A 2022 Texas appellate court case explores who had a claim to the proceeds of the sale of goods: the consignor of the goods? Or the lender to the consignee? Learn why the court ruled in favor of the lender-bank.

The Facts

The consignor was a manufacturer of computer tablets. Some of the tablets were sold on the Home Shopping Network under a drop shipment agreement which required the consignor to hire a third party to fulfill the HSN orders and ship the table…