Legal Question in Business Law in California

Question about the legal definition of consignment

My company is in the tade of breeding/reselling reptiles. In early 1999 we recieved a shipment of reptiles from a wholeseller in Georgia. These animals were wild caught, abd require certain care. The wholseller claimed that all of the animals have been treated for parasites and other harmful diseases. He sent us the animals on consignment with the agreement that we would pay him on a weekly basis of the animals we sold. Soon afer the shipment was recieved all of them started to die, we lost the whole shipment along with all of our breeding stock with actual damages in access of $15,000. The total bill was for $4500 and paid him $1500 of that for animals we sold Which we had to reimburse or customers for since there animals died. Does the wholeseller have any legal precident for the aquisition of the remainder of the bill? He was negligent in that he told us we had nothing to worry about because thery were supposedly treated. Sop we figure since thery were on consignment, the property was still his, and we were selling them for him, so he shuld have to obsorb the looses of the animals. Please tell me where we stand in this matter... Thank you


Asked on 1/05/00, 2:45 am

2 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Question about the legal definition of consignment

Do you have a written agreement specifying how this transaction was to be conducted? Most businesses would not part with $4,500.00 of inventory without some sort of agreement.

Much of my response would be shaped by the contents of your contract with the wholesaler, but it seems likely that you would have a good case against them for breach of warranty and breach of contract. They promised healthy animals and did not deliver such, so you might be able to recoup your loss as well as the money you have already sent them.

Then again, if it turns out that the wholesaler used reasonable care but the animals had an exotic disease, you could be out of luck.

As I said, the wording of your agreement is key to this analysis, and it is hard to answer more definitively without knowing the specific terms.

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Answered on 1/05/00, 8:08 pm
John Hayes The John Hayes Law Offices

Re: Question about the legal definition of consignment

It sounds like the wholesaler gave you a guarantee that these animals were healthy. Since they died then the wholesaler is responsible for the loss. The language of the contract you had with the wholeseller will determine the outcome of the dispute. If they sue you for breach of contract your defense would also depend on the contract. If there was an implied warranty that the reptiles would be healthy and free of disease then you may be able to sue them for your loss. If you would like additional information on implied warranties and breach of contract lawsuits, please feel free to contact my office toll free at 877-546-9918. The call and consultation are free. I look forward to speaking with you about your rights as a retailer.

Sincerely, John Hayes

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Answered on 1/05/00, 11:03 pm


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