In Re Sitkin Smelting and Refining, Inc. Eastman Kodak Company v. G. M. Harrison, Trustee and C. I. T. Corporation

RONEY, Circuit Judge:

This case raises a single issue: whether the Bankruptcy Court erred in determining that possession of film entrusted to a now bankrupt metal refiner should be given to a secured creditor of the refiner rather than to the film manufacturer that entrusted it to the refiner. Holding that the bankrupt did not gain sufficient rights under the contract with the manufacturer to give its creditor a security interest in the film, we reverse.

The background of the transaction between plaintiff and the bankrupt company, as well as the terms of the contract, are somewhat unique. Prior…