Melrose International Trading Co. of Canada, Ltd. v. Patrick Cudahy Inc.

482 F. Supp. 1369, 29 U.C.C. Rep. Serv. (West) 429, 1980 U.S. Dist. LEXIS 9952
CourtDistrict Court, E.D. Wisconsin
DecidedJanuary 28, 1980
Docket75-C-335
StatusPublished
Cited by1 cases

This text of 482 F. Supp. 1369 (Melrose International Trading Co. of Canada, Ltd. v. Patrick Cudahy Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melrose International Trading Co. of Canada, Ltd. v. Patrick Cudahy Inc., 482 F. Supp. 1369, 29 U.C.C. Rep. Serv. (West) 429, 1980 U.S. Dist. LEXIS 9952 (E.D. Wis. 1980).

Opinion

MEMORANDUM AND ORDER

WARREN, District Judge.

This is a civil action involving the sale of approximately 80,000 pounds of frozen edible pork livers by the defendant Patrick Cudahy, Inc. (PCI) to the plaintiff Melrose International Trading Company of Canada, Ltd. (Melrose). Jurisdiction is grounded on 28 U.S.C. § 1332(a). A seven-day court trial was held on September 19, 1977 through September 27, 1977. At the conclusion of the trial, the Court requested post-trial briefs and proposed findings from each party-

The following constitutes the Court’s findings of fact and conclusions of law in this action pursuant to Rule 52(a) of the Federal Rules of Civil Procedure.

Two separate contracts are involved in this action. The first is a contract between Melrose and PCI for the purchase by Mel-rose of some 76,000 to 80,000 pounds of pork livers. The second is a continuing service contract between PCI and third-party defendant, Wisconsin Cold Storage Company (WisCold) for WisCold to store and freeze PCI’s pork products in WisCold’s warehouse.

A review of the testimony presented at trial reveals that on about September 16, 1974, Melrose placed an order to purchase from PCI 76,000 to 80,000 pounds of fresh, frozen, edible pork livers to be delivered in Kenosha, Wisconsin, for transport to Antwerp, Belgium. Melrose’s order to PCI was placed through John E. Staren Company (Staren), a Chicago meat broker. The broker “booked” a deal between Melrose and PCI for:

76,000-80,000 lbs. fresh frozen edible pork livers packed in 50 lb. poly-lined, even *1371 weight boxes, marked, strapped, stamped and packed suitable for export to Holland.

On the same day, Staren sent a written confirmation of the contract to both Mel-rose and PCI. The confirmation provided that:

The issuance of this confirmation to buyer and seller shall establish a valid contract between both parties. .

This confirmation (Exhibit 1) which is the written embodiment of the contract between Melrose and PCI calls for shipment to be made during the last week of September, 1974, to Melrose, e/o Morelli Overseas Export Service (Morelli) F.A.S. Kenosha, Wisconsin (emphasis added).

On September 18,1974, Melrose issued its confirmation of purchase to PCI for:

76/80,000 lbs. Fresh Frozen U.S.D.A. Inspected Pork Livers packed in 50 lb. poly-lined cartons suitable for Export to Holland.

PCI slaughters, processes, and packages numerous varieties of meats. The slaughtering and processing of all meat in the United States is regulated by the United States Department of Agriculture (USDA). In this case, the USDA inspectors at PCI made a postmortem inspection of the pork livers during the slaughtering and evisceration. A further inspection of the pork livers was conducted just prior to their shipment from WisCold to the plaintiff.

During September 1974, PCI processed the pork livers — packing 50 pounds of livers in each carton. Nick Klisurich, supervisor of the Abbatois at PCI, and a 30-year employee of PCI, testified at length regarding the packing process. 1 According to his testimony, dry ice was used in the packing process in September, 1974, although a different procedure is used today. At that time, after the pork livers were trimmed, they would go to the packer at PCI. The packer would spread three pounds of dry ice in the bottom of the packing carton, which had a plastic liner in it. Trimmed pork livers were placed in this 50-pound carton until it was about one-half full. About one pound of dry ice was spread on top of these livers and the remainder of the carton was then filled with pork livers. Two more pounds of dry ice was placed on top of this, and the carton’s liner was folded over the top of the livers. The cover, which had holes in it to allow the carbon dioxide to escape, was then placed on the carton.

These filled cartons were placed on pallets two layers high with spreaders in between. Spreaders were used to allow more air circulation between the cartons to facilitate freezing. Twenty cartons were placed on each load. These were then placed in a cooler where the temperature was about 32°-36° F. The livers were stored in the cooler until they were picked up by Wis-Cold. There was no testimony, however, as to how long the livers remained in the cooler at PCI.

By virtue of an ongoing servicing contract.between WisCold and Patrick Cudahy, WisCold had, since 1972, been picking up meat products at Patrick Cudahy and transporting them by refrigerated truck to its freezer warehouse. The pork livers involved in this action were among the goods thus transported. Upon receipt by Wis-Cold, the livers were placed in a freezer until ordered out by PCI.

The freezing facilities at WisCold were constructed in 1970 with heavy refrigeration capabilities (1,680 tons) for the purpose of being able to receive and process 500,000 pounds of cranberries per day. Although not a “blast freezer” it was constantly monitored and portable fans on casters, capable of moving 500-700 cubic feet per minute of air were utilized in the facilities.

On twelve separate days between September 4, 1974 and September 26, 1974, *1372 WisCold picked up and stored PCI’s pork products in its freezer warehouse, including some 78,000 pounds of pork livers which arrived in varying amounts on each of these twelve days. The pork livers sold to Mel-rose were part of Lots 2043 and 2063.

The transfer was by refrigerated truck, owned by WisCold and driven by a WisCold employee. The shuttle truck was refrigerated to maintain a temperature of approximately 40 degrees. The last truckload each day was held in the refrigerated truck overnight and unloaded the next morning, except that no loads were held unloaded over weekends.

According to WisCold’s daily temperature logs for September, 1974, the temperature in the freezer was never higher than -8° Fahrenheit. Freezer temperatures were checked twice each day at 6:00 A.M. and 6:00 P.M. The freezer was closed at noon on each Saturday and not opened until 6:00 A.M. Monday. An automated alarm system with the Merchant Police provided coverage during the weekend. There was no shutdown in the freezer during September, 1974.

The president of WisCold, James Kuehn, testified that fans are put in front of the pallets of fresh products in order to circulate the air and promote faster freezing. In addition, he stated that, depending on the position of the pallet, it would take 40 to 60 hours at temperatures of -10° to -12° F. to freeze the pork livers in these 50-pound cartons. According to Mr. Kuehn, WisCold’s practice is to attempt to keep products for four days to ensure that all are properly frozen.

Although Mr. Kuehn acknowledged that he was not a microbiologist and was not an expert in meat spoilage, he had worked in the freezer warehouse business for some 38 years. According to Mr. Kuehn, the pork livers were well-frozen when they left the WisCold plant.

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482 F. Supp. 1369, 29 U.C.C. Rep. Serv. (West) 429, 1980 U.S. Dist. LEXIS 9952, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melrose-international-trading-co-of-canada-ltd-v-patrick-cudahy-inc-wied-1980.