Southern Recycling, LLC v. Gibbs International, Inc.
United States District Court for the District of South Carolina
2016 WL 1258402 (2016)

- Written by Sarah Holley, JD
Facts
Southern Recycling, LLC (plaintiff) contracted with Gibbs International, Inc. (defendant) for the purchase of 500,000 pounds of scrap copper wire. The purchase contract contained the following term regarding the location at which the goods were to be delivered: “F.O.B., loaded in bulk into Buyer’s 20’ sea container at Port of Manila, Philippines.” The term also stated that a representative of Southern would inspect each loading and sign each trucker’s bill of lading alongside a representative of Gibbs. Following the purchase contract, Gibbs sent 13 total shipping containers to an inland warehouse in Sucat, Philippines, in order to load the copper wire. The containers were then trucked from the warehouse in Sucat to the Port of Manila; transported to Long Beach, California; and transported again to their final destination in Dallas, Texas. Southern sued Gibbs for breach of contract after Southern opened the containers in Dallas and found debris rather than the copper wire for which it had contracted to purchase. The parties disputed who bore the risk of loss under the purchase contract.
Rule of Law
Issue
Holding and Reasoning (Hendricks, J.)
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