Stampede Presentation Products, Inc. v. Productive Transportation, Inc.
United States District Court for the Western District of New York
2013 WL 2245064 (2013)
Stampede (plaintiff) bought televisions from 1 SaleADay (defendant) and separately hired Productive (defendant), which subcontracted to MML Transport, to ship them from California to Stampede's Illinois customer; the bill of lading specified 'FOB Origin' and listed Stampede as the shipper, and the televisions were lost or stolen after MML Transport picked them up. Stampede sued both companies for breach of contract, and 1 SaleADay moved to dismiss, arguing the risk of loss had already shifted to Stampede once the carrier took possession.
Whether, under UCC Section 2-509(1)(a), the risk of loss in a shipment contract shifts from seller to buyer once the goods are delivered to a carrier.