Court Legitimizes Price After Sale (“PAS”) Transactions and Rules That PAS Transactions Are Not The Same As Consignment Sales.

Court Legitimizes Price After Sale (“PAS”) Transactions and Rules That PAS Transactions Are Not The Same As Consignment Sales.

Court Legitimizes Price After Sale (“PAS”) Transactions and Rules That PAS Transactions Are Not The Same As Consignment Sales.

Rynn & Janowsky, LLP partner Lewis Janowsky successfully defended terminal market receivers who purchased produce on price after sale (“PAS”) terms from allegations that those purchases were actually consignment sales and that the receivers were commission merchants owing fiduciary duties to the grower.

In this case, the first of its kind in California, the court ruled that price after sale transactions are legitimate transactions under California law and not subject to the same requirements under state law as consignment merchants.

“In my view, I think it is a good decision for wholesalers and businesses on the terminal market generally,” said Mr. Janowsky.