Cook Specialty Co. v. Schrlock

Cook (plaintiff) bought a machine from MSI (defendant) F.O.B. MSI's Illinois warehouse; MSI hired carrier RTL (defendant), which provided a certificate of insurance for $100,000, but the machine fell off the truck due to improper securing during transit, and RTL's insurer paid only the $5,000 policy maximum for that type of accident. Cook sued MSI and RTL for the remaining purchase price, moving for summary judgment on the theory that MSI's shipping contract with RTL was unreasonable under UCC § 2-504, meaning risk of loss never passed to Cook; MSI also moved for summary judgment.