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LIEB PACKING COMPANY v. H. R. TROCKE

Minnesota Supreme Court1917-04-27No. Nos. 20,218—(62)
136 Minn. 345

Summary

Holding. The trial court's judgment for the plaintiff packer was affirmed. Title to goods passes when the seller delivers them to a carrier for shipment to a buyer in a different location, and the seller's obligation is satisfied upon such delivery to the carrier, even if the goods do not arrive at their destination.

Lieb Packing Company, an oyster packer in Baltimore, entered into a recurring supply contract with H. R. Trocke, a restaurant operator in St. Paul, Minnesota, under which the packer was to ship canned oysters on a weekly basis. A dispute arose regarding the total value of shipments made under the contract, with the packer claiming $364.15 and the restaurant owner asserting the amount was only $344.35 and paying that lesser sum. The packer sued for the $19.80 difference.

The trial court ruled in favor of the packer. The defendant appealed, but the appellate court affirmed, finding that the packer had presented sufficient evidence that goods matching the claimed amount were shipped by express from Baltimore to St. Paul. Under the applicable law, title to the goods passed to the buyer when the seller delivered them to the carrier for shipment, rather than upon physical receipt or inspection by the buyer. The buyer's right to inspect goods upon arrival does not prevent the passage of title, and the risk of loss during transit falls on the buyer rather than the seller.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • When does title pass in a contract for sale of goods to be shipped between parties in different states
  • Effect of buyer's right to inspect goods on the passage of title
  • Allocation of risk of loss during transit between seller and buyer
  • Admissibility of depositions taken from witnesses residing in another state

Procedural posture

The trial court rendered judgment for the plaintiff packer, and the defendant restaurant owner appealed.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Hallam, J.

Plaintiff is an oyster packer at Baltimore. Defendant is a restaurant keeper in St. Paul. In 1914, defendant wrote plaintiff: “Ship to Trocke Cafe, at St. Paul, Minn. At Once, Trial Order.”

On October 27 defendant wrote plaintiff: “Please ship us one 5 gal. can of Extra Sel. to arrive Monday and one 5 gal. can Thursday each week.”

Pursuant to this order plaintiff made shipments by express from time to time and defendant made payments generally on account from time to time. A dispute arose as to the number of shipments made. Plaintiff claimed it had made shipments to the total of $364.15. Defendant claimed that the shipments totaled $344.35. This amount defendant paid. This action was brought to recover the difference of $19.80 which plaintiff claims to be due. The trial court found for plaintiff; defendant appeals.

The evidence shows that goods to the amount claimed by plaintiff were shipped by plaintiff from Baltimore consigned to the defendant at St. Paul. This is sufficient to sustain plaintiff’s case, even though some of the goods may not have reached the defendant.

This is a case of an executory contract to sell goods to be thereafter ascertained. When the title passes the vendee becomes liable to pay the price. Title passes when goods conforming to the contract are appropriated to the contract. Appropriation is the act of both parties, but one party may, by agreement express or implied, authorize the other to act for him in making the appropriation. The nature of the transaction between these parties was such that it was clearly contemplated that the seller should make the appropriation. See Hoover v. Maher, 51 Minn. 269, 53 N. W. 646.

Delivery by the seller to the buyer is an unequivocal act of appropriation. The contract in this case is silent as to the place of delivery. In such case, the general rule is that the articles sold are to be delivered where they are at the time of the sale. If the seller does not have them on hand at the time of the sale and they are such as he keeps and disposes of at the place where he does business, then that is the place of delivery. Janney v. Sleeper, 30 Minn. 473, 16 N. W. 365; Mobile F. & T. Co. v. McGuire, 81 Minn. 232, 83 N. W. 833.

If the parties reside in different cities, and shipment of the goods is contemplated, then delivery takes place when the goods are selected and delivered to the carrier for shipment consigned to the buyer. Kessler v. Smith, 42 Minn. 494, 44 N. W. 794; Schwartz v. Church of the Holy Cross, 60 Minn. 183, 62 N. W. 266.

Applying these principles, it is clear that the title passed when the goods were delivered by plaintiff to the express company for shipment to defendant.

It is true the defendant had the right to inspect the goods on arrival, and if they never arrived, he had no opportunity to exercise this right, but this did not prevent title from passing. The right of inspection is only a right to examine the goods to see whether they conform to the contract. If they do so conform, the title is held to have passed as of the date of shipment. Williston, Sales, § 473; Brigham v. Hibbard, 28 Ore. 386, 43 Pac. 383; Orcutt v. Nelson, 1 Gray (Mass.) 536, 543; Mobile F. & T. Co. v. McGuire, supra. The purchaser has, by the making of the contract, committed himself in advance to the acceptance of goods. The fact that the carrier does not carry the goods through, so as to give the buyer an opportunity to inspect, is no fault of the seller. The carrier may be liable for his failure. The carrier is the buyer’s agent. As between seller and buyer, the goods while in transit are at the risk of the buyer. The fact that they are lost in transit does not affect the passage of title. Kelsea v. Ramsey Mnfg. Co. 55 N. J. Law, 320, 26 Atl. 907, 22 L.R.A. 415.

The depositions of three witnesses were taken at Baltimore, Maryland. Each witness testified that he lived and was engaged in business in the state of Maryland. Section 8395, G. S. 1913, provides: “No deposition shall be used if it appears that the reason for taking it no longer exists; but, if the party producing the deposition in such case shows sufficient cause then existing for using the same, it may be admitted.” The necessity for using the deposition may appear from the testimony of the witness himself. These witnesses having testified that they resided in the state of Maryland, that was sufficient reason for taking and using their depositions. Their continued residence there will be presumed until the contrary is • shown. It was not necessary to make further proof that the witnesses were not within the jurisdiction of the court. Sells v. Haggard & Co. 21 Neb. 357, 32 N. W. 66; Gould v. Crawford, 2 Pa. St. 89; Patapsco Ins. Co. v. Southgate, 5 Pet. 604, 8 L. ed. 243.

Order offirmed.