Kerr Pacific Milling Corp. v. Coast Trading Co. (In Re Coast Trading Co.)

FOLGER JOHNSON, Bankruptcy Judge.

Plaintiff Kerr ' Pacific Milling Corp. agreed to sell 33,000 bushels of wheat to defendant Coast Trading Co., which agreement was confirmed in writing. Coast then sold part of it to Dallas Co-op which in turn sold it to United Grain. Coast then directed Kerr to deliver this portion of the contract directly to United Grain by Union Pacific Railroad. It was shipped on March 31 pursuant to a nonnegotiable straight bill of lading. United, in accordance with the custom of the trade, paid 90% of the purchase price to Dallas which in turn paid it to Coast, but Coast…