Donegal Steel Foundry Co., a Pennsylvania Corporation v. Accurate Products Co., a New Jersey Corporation

OPINION OF THE COURT

ADAMS, Circuit Judge.

The present case involves two principal questions: first, whether the ex-pungement by a bankruptcy court of a claim by a seller of parts against a buyer acts as an estoppel in a subsequent attempt by the seller to recover damages from a third party to whom the parts were shipped; and second, whether the delivery of parts to the third party renders that party a bailee subject to liability under the Uniform Commercial Code, 12A N.J.S.A. § 2 — 705, for failure to hon- or a stoppage-in-transit order issued by the seller.

A

On June 29, 1967, Guenther Systems,…