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Joseph Martinelli & Co. v. L. Gillarde Co.

73 F. Supp. 293 (1947)

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Joseph Martinelli & Co. v. L. Gillarde Co.

United States District Court for the District of Massachusetts
73 F. Supp. 293 (1947)

Facts

L. Gillarde Company (Gillarde) (defendant) sold a carload of U.S. Grade No. 1 cantaloupes to Joseph Martinelli & Company, Inc. (Martinelli) (plaintiff). The sale was confirmed through a series of telegrams that specified that shipment was “f.o.b., rolling acceptance final.” Upon the shipment’s arrival, Martinelli rejected the cantaloupes, which appeared moldy and were later determined to contain, on average, 85 percent Cladosporium rot. Gillarde filed a claim against Martinelli under the Perishable Agricultural Commodities Act (PACA). The secretary of the Department of Agriculture concluded that Martinelli had no right of rejection because the sale was made F.O.B. on a “rolling acceptance final” basis and ordered Martinelli to pay the balance of the contract price. As authorized by the PACA, Martinelli appealed the Department of Agriculture’s decision to the United States District Court for the District of Massachusetts, claiming that the telegrams did not constitute a sufficient writing to satisfy the statute of frauds and that the cantaloupes were not U.S. Grade No. 1. Martinelli presented expert testimony that the cantaloupes were infected with a type of rot that is not visible in the early stages of ripening and, therefore, the inspection grade of U.S. No. 1 was inaccurate.

Rule of Law

Issue

Holding and Reasoning (Healey, J.)

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