Butts v. Glendale Plywood Co.

NORRIS, Circuit Judge:

The question presented by this appeal is whether Glendale Plywood Co. (Glendale) had the right to stop a shipment of plywood to Summit Creek Plywood Company (Summit Creek) after Summit Creek resold the plywood to a third party and ordered its destination changed. The district court held that, under § 2-705 of the Uniform Commercial Code, the redirection of a shipment at the order of a buyer, without the seller’s knowledge, constitutes a reshipment that cuts off the seller’s right to stop the goods in transit. We affirm.

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Summit Creek ordered two railroad carloads of…