Thousand Springs Trout Farms, Inc., a Corporation v. Iml Freight, Inc., a Corporation

In this “diversity” action brought by a shipper (Thousand Springs) against a carrier (IML) for damage to a load of fresh trout, we attempt to apply well-settled principles of generally applicable law to an unusual fact situation involving perishable goods.

I.

Thousand Springs operates a trout farm and packing plant near Buhl, Idaho, and IML Freight is an interstate motor carrier of freight for hire with terminals in a number of cities, including Twin Falls, Idaho. In early September, 1972, Kroger Company entered into an oral contract with Thousand Springs. It was agreed that Kroger would purchase 24,450 pounds of fresh trout from Thousand Springs. For the fish, Kroger agreed to pay 84 cents per pound, a total of $20,538. Thousand Springs arranged with IML that a “reefer” (a trailer with refrigeration capabilities) be delivered to the facility of Thousand Springs on the morning of October 5th. Additionally, it was agreed that the fish should be loaded, the trailer and cargo to be picked up by noon, October 6th, and that delivery to Kroger in Columbus, Ohio should be made on or before October 9th.

On October 5th, at approximately 10 a. m., IML delivered a trailer equipped with a…