Opinion ID: 1192841
Heading Depth: 1
Heading Rank: 1

Heading: transfer of risk of loss

Text: In seeking to recover upon an implied warranty the burden is upon the plaintiff to prove that these sheep were suffering from vibriosis at the time the risk of loss had passed to it. There is no question raised by either party nor is any other rule urged, and the trial court proceeded upon that theory. The judgment for the defendants herein is partially based upon Conclusion of Law No. 1, which is as follows: That the Plaintiff has failed to establish the existence of vibriosis at the time of the sale to the exclusion of any other cause or causes of disease. This conclusion is based upon Finding No. 4, which was that the sale of the sheep was totally and fully concluded on March 22, 1970. Plaintiff, however, claims that the risk of loss did not pass to it until the sheep were delivered in Grand Island. This matter requires our disposal because it is the very basis of this suit. The above finding and conclusion are based upon the complaint of the plaintiff herein wherein it states: On or about March 21, 1970, for the initial sum of $58,806.00 in hand paid, Plaintiff procured from Defendants in Washakie County, Wyoming, 1,785 ewes (represented by Defendants to be healthy and pregnant) for delivery to Grand Island and Wolbach, Nebraska, as aforesaid. That said ewes were delivered on March 27-28, 1970. That at the time of said delivery, said ewes were suffering from a disease known as Vibrio Fetus disease; the result of which is that they were unable to carry their lambs. That said lambs were aborted stillborn and the lamb crop was a total loss. The construction which we place thereon is that plaintiff is claiming a so-called destination contract with the transfer of the risk of loss based upon the time of the arrival of the ewes in Grand Island. The rights of the parties do not depend upon the title under the Uniform Commercial Code, Park County Implement Co. v. Craig, Wyo., 397 P.2d 800, 802, and the trial court herein apparently proceeded upon the theory that the risk of loss attached at the time of the sale and relied upon a title concept. There were, however, other things to be done to complete this sale after the buyers departed from Worland. The sheep of this class had to be cut from the younger sheep in the two bands located east of Worland. They were then to be bagged, assembled, and placed in the yards and loaded for shipment to Grand Island in the absence of agents of the plaintiff. This factual situation invokes and brings this transaction within §§ 34-2-509(1)(a) and 34-2-504(a), W.S. 1957, 1971 Cum.Supp. A possible inference arises from the fact that the plaintiff itself placed a similar construction upon this agreement when it made no claim or protest at the time the cars were unloaded and seven lambs and three ewes were discovered dead. The applicable rule appears in Hayward v. Postma, 31 Mich. App. 720, 188 N.W.2d 31, 32, as follows:    Under the Code, risk of loss is no longer determined by which party has title to the goods at the time of the loss. It is determined, instead, by rules in the Code covering specific fact situations independent of title.    The Hayward case further holds that the parties can validly agree who shall bear the risk of loss but must do so in clear and unequivocal language. It has been phrased another way in the case of Sternheim v. Silver Bell of Rosyln, Inc., 66 Misc.2d 726, 321 N.Y.S.2d 965, 968, wherein it was said: It thus appears to be the intent of the statute to shift the risk of loss to the purchaser when the seller has done all which is required of him under the contract.    In connection with appellant's contention that the risk of loss did not attach until the sheep arrived in Grand Island, we find the following from the case of Dana Debs, Inc. v. Lady Rose Stores, Inc., 65 Misc.2d 697, 319 N.Y.S.2d 111, 112: The Court decides that this was not a destination contract since there was no express requirement that they be delivered at a particular destination. The word `require' means that there is an explicit written understanding to that effect for otherwise every shipment would be deemed a destination contract.    The Dana case then held the risk passed to the buyer upon delivery to the express company. In the instant case we hold that the risk of loss passed to plaintiff at the time the sheep were delivered to the carrier in Worland. Therefore, the trial court must determine if the ewes had vibriosis on March 26 as contrasted to March 22 in order to make proper disposal hereof.