Swift Canadian Co. v. Banet

Swift Canadian Co. (Swift) (plaintiff), a company based in Toronto, entered into a contract with the Banet defendants who do business as Keystone Wool Pullers (Keystone) (defendant) in Philadelphia. Under the contract, Keystone was to purchase a quantity of lamb pelts at a stipulated price. The pelts would be sold "F.O.B. Toronto" and shipped to Keystone by way of the Pennsylvania Railroad to Philadelphia. Two other conditions in the contract provided that neither party would be liable for any governmental act or order and that should the pelts be sold “F.O.B. seller's plant,” title and risk of loss would pass to Keystone when the product was loaded on cars at the seller's plant. Following a shipment of a portion of the pelts, Swift advised Keystone of its readiness to ship the remaining pelts. On or about this time, the United States Bureau of Animal Industry issued new regulations regarding the importation of lamb pelts which had the effect of preventing the importation of lamb pelts into the United States. Keystone advised Swift that it was refusing delivery of the pelts and in response, Swift did not load or ship the pelts. Swift commenced an action against Keystone for breach of contract in the United States District Court for the Eastern District of Pennsylvania. Both parties moved for summary judgment and the district court granted Keystone's motion. Swift appealed to the United States Court of Appeals for the Third Circuit.