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Stevenson v. 81 193 Bags of Flour

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eBook details

  • Title: Stevenson v. 81 193 Bags of Flour
  • Author : Fifth Circuit United States Court Of Appeals
  • Release Date : January 27, 1980
  • Genre: Law,Books,Professional & Technical,
  • Pages : * pages
  • Size : 127 KB

Description

With this decision we hopefully end, in all but a minor respect, an amphibious imbroglio1 and commercial law practitioner's nightmare involving three shiploads of enriched wheat flour.2 By a coincidence in this confusing case, each shipload of flour became infested, to varying degrees, with confused (triboleum confusam) and red rust (triboleum casteneum) flour beetles (sometimes called weevils). None of the parties involved-seller, buyer, and carrier-acted faultlessly over the course of the transaction. All brought their differences to the able District Judge for resolution. The District Judge carefully considered five weeks of testimony presented by the parties, their numerous pleadings, motions, briefs and arguments, scores of interlocking mixed law-fact issues, and difficult questions of federal civil procedure, state commercial, and admiralty law. The Judge's careful and lengthy opinion, 449 F. Supp. 84 (S.D. Ala. 1976), resolved the imbroglio but failed to fully convince the parties. The District Judge convinced us, however, and we affirm in almost all respects. Without pause to reflect on the complications that simple insects-confused flour beetles or otherwise-can create in the lives of men and Courts, we proceed to explain our decision. I. The Life-Cycle Of This Appeal: Inception, Growth, And Development A. The Documents In April 1974 the Republic of Bolivia entered into two contracts for the purchase of 26,618 metric tons of American enriched wheat flour from ADM Milling Co.3 ADM owns a number of mills throughout the Midwest. Bolivia sought the flour for distribution to her citizens. The contracts were prepared on ADM's standard form, with quantity, chemical specifications, price, mode of shipment, payment terms, and delivery details filled in. The contracts required packing the flour in 100 pound capacity cotton bags and delivering it to Mobile, Alabama. Railcar shipment was contemplated to Mobile, followed by ocean carriage to South America. This was to take place from May to September 1974. The contracts contained the following delivery terms: ""F.A.S. MOBILE, ALABAMA, for export;"" and ""Delivery of goods by SELLER to the carrier at point of shipment shall constitute delivery to BUYER. . . ."" Upon satisfactory delivery, the price was payable by irrevocable letter of credit.4


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