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Chicago Prime Packers, Inc. v. Northam Food Trading Co.
Citation:
320 F.Supp.2d 702, 408 F.3d 894 (2004)Facts
Chicago Prime Packers, a Colorado meat wholesaler, contracted with Northam Food Trading Company, a Canadian partnership, to sell 1,350 boxes containing 40,500 pounds of pork back ribs for $178,200.00 with payment due within seven days of receipt. Chicago Prime purchased the ribs from processor Brookfield Farms, which packaged them horizontally in thirty-pound boxes and stored them in freezers at acceptable temperatures according to company records. On April 24, 2001, Northam’s carrier Brown Brother’s Trucking picked up the ribs from cold storage facility B&B and signed a bill of lading acknowledging goods were in apparent good order. The next day Brown delivered the shipment to Northam’s customer Beacon Premium Meats, which also signed a bill of lading acknowledging apparent good order. Payment was due May 1, 2001, but Northam did not pay. On May 4, 2001, when Beacon began processing the ribs, they appeared to be in off condition. USDA Inspector Ken Ward examined the product, found it did not look good, and placed a retained tag on the shipment. On May 23, 2001, Dr. John Maltby of USDA conducted an inspection and concluded the ribs were rotten, appeared to have been assembled from various sources, and should be condemned. The entire shipment was condemned, but there was no evidence confirming the inspected meat was the same product sold by Chicago Prime to Northam or excluding the possibility the ribs spoiled after transfer.
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