A.M. Knitwear Corp. v. All America Export-Import Corp.
New York Court of Appeals
359 N.E.2d 342 (1976)
All America Export-Import Corp. (All America) (defendant) ordered a large amount of yarn from A.M. Knitwear Corp. (AM) (plaintiff). All America sent AM an order form, on which All America wrote “FOB PLANT PER LB. $1.35” and “Pick Up from your Plant to Moore-McCormack Pier for shipment to Santos, Brazil.” All America hired a truck to pick up the yarn from AM’s plant. The trucker delivered an empty shipping container to AM’s plant, and then the left while AM loaded the yarn. AM loaded the yarn and notified All America that the shipment was ready for pickup. While the yarn was sitting at AM’s plant waiting to be picked up by All America’s trucker, a thief posed as the trucker and signed for the shipment. The thief then drove off, and the yarn was never seen again. All America refused to pay for the stolen yarn, and AM sued. AM argued that it had fully performed the contract by loading the yarn into the empty container. The Special Term agreed with AM and held that the risk of loss had passed to All America once AM loaded the yarn. The Appellate Division reversed, and AM appealed to the New York Court of Appeals.
Rule of Law
Holding and Reasoning (Cooke, J.)
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