Story Case

The Interstate League Baseball Club bought 5,000 base-balls of the Spaulding Athletic Company, giving a check for $5,000 in full payment. After the balls had been shipped, the Spaulding local agent telegraphed to the company that the Interstate League was on the verge of bankruptcy, due to excessive Litigation. The firm telegraphed in answer, "Can't cash League check. Make effort to stop goods before reaching them." The local representative rushed to the freight house of the Union Pacific, where he found the freight agent in the act of breaking the seal of the car, preparatory to delivery of the balls to the Interstate League driver. Assuming that the title of the base-balls was in the Interstate League, can the Spaulding company, through its local agent, stop the shipment?

Ruling Court Case. Tufts Vs. Sylvester, Volume 79 Maine Reports, Page 213; Volume 1 American State Reports, Page 303

Tufts sold a bill of goods to be shipped at Boston to the buyer at Farmington, Massachusetts. The buyer became insolvent after the purchase, and countermanded the order of goods, but the countermand was made too late. Before the goods came, he had gone into insolvency, and an officer of court-messenger had taken possession of his property. An express company, bringing the goods, tendered them to the buyer, who refused to accept them. But the messenger had accepted the goods from the carrier, paying the charges. After this, but before an assignee was appointed, Tufts, the seller, made a demand upon both the carrier and the messenger for the return of his goods. This was an action to recover the possession of them.

The question upon these facts is, whether the goods were seasonably stopped in transit to preserve the lien of Tufts.

Chief Justice Peters said: "We think they were. The right of stoppage in transit is favored by law. It is clear that the goods did not go into the buyer's possession. He refused to receive them. He had a moral and legal right to do so. 'He may refuse to take possession', says Mr. Benjamin, 'and thus leave unimpaired the right of stoppage in transit, unless the vendor be anticipated in getting possession by the assignee of the buyer.' " Judgment was given for Tufts.

Ruling Law. Story Case Answer

We have just seen that an unpaid vendor may retain possession of the goods sold, as security for the purchase price, unless he waives this right, called vendor's lien. If he has shipped the goods, and the vendee becomes insolvent while the goods are in transit, the seller may notify the carrier not to deliver them to the buyer. It is said that the carrier's possession is the possession of the vendor, and on this theory the courts hold that the vendor's lien continues. The right to stop goods in transit ceases, in case the vendee, having received a bill of lading, transfers it to a purchaser without notice.

The Spaulding Athletic Company may stop the goods at any time while in transit, even though the title has passed to the purchaser. The local agent arrived just in time. If the Interstate League driver had taken the consignment of base-balls into his possession, the right of the Spaulding company would have been cut off.