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Cook Specialty Co. v. Schrlock

United States District Court for the Eastern District of Pennsylvania
772 F. Supp. 1532 (1991)


Facts

Cook Specialty Company (Cook) (plaintiff) purchased a hydraulic-press brake machine from Machinery Systems, Inc. (MSI) (defendant) for $28,000. The contract’s delivery terms were Free on Board (FOB) MSI’s Illinois warehouse. MSI hired Randy’s Truck Lines (RTL) (defendant), a carrier, to deliver the machine from MSI’s warehouse to Cook. RTL provided MSI with a certificate of insurance purportedly worth $100,000. Thereafter, RTL picked up the machine from MSI’s warehouse. During transport to Cook, the machine fell off the truck due to being improperly secured. RTL’s insurance company reimbursed Cook only $5,000, which constituted the maximum payout for that type of accident under the policy. Cook brought suit against MSI and RTL to recover the rest of the purchase price. Cook moved for summary judgment, arguing that the risk of loss never passed from MSI to Cook because the MSI-RTL contract for the machine’s delivery was unreasonable under § 2-504 of the Uniform Commercial Code (UCC). MSI also moved for summary judgment.

Rule of Law

Issue

Holding and Reasoning (Waldman, J.)

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