Tanbro Fabrics Corp. v. Deering Milliken, Inc.

Chief Judge Breitel.

In an action for the tortious conversion of unfinished textile fabrics (greige goods), plaintiff Tanbro sought damages from Deering Milliken, a textile manufacturer. Tanbro, known in the trade as a "converter”, finishes textile into dyed and patterned fabrics. The goods in question had been manufactured by Deering, and sold on a "bill and hold” basis to Mill Fabrics, also a converter, now insolvent. Mill Fabrics resold the goods, while still in Deering’s warehouse, also on a bill and hold basis, to Tanbro.

Deering refused to deliver the goods to Tanbro on Tanbro’s…