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Pestana v. Karinol Corp.

367 So. 2d 1096 (1979)

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Pestana v. Karinol Corp.

Florida District Court of Appeal
367 So. 2d 1096 (1979)

DH

Facts

Karinol Corp. (Karinol) entered into a contract with a decedent of Pestana (plaintiff) in which Karinol agreed to sell and ship watches to Pestana’s decedent in Chetumal, Mexico. The contract did not specifically state which party bore the risk of loss while the watches were in transit. Moreover, the contract did not contain an F.O.B. (Free on Board) term. The bottom of the contract stated that the watches were to be sent to Chetumal, Mexico. Karinol hired a carrier for the safe transportation of the watches to Pestana’s decedent and gave the watches to the carrier for transport. Karinol also promptly notified Pestana’s decedent of the shipment and gave Pestana’s decedent the necessary documents to obtain possession of the watches upon arrival. Nevertheless, the watches were never delivered to Pestana’s decedent. Pestana sued Karinol, the carrier, and the carrier’s insurer (defendants). The parties agreed that the evidence demonstrated that Karinol performed all its obligations under the Uniform Commercial Code (UCC) if the contract between Karinol and Pestana’s decedent was a shipment contract. However, Pestana argued that the term at the bottom of the contract rendered the contract a destination contract. The trial court entered judgment in the defendants’ favor.

Rule of Law

Issue

Holding and Reasoning (Hubbart, J.)

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