This section contains the nature of the case and procedural background.

P purchased 450 cases of cigarettes in the Philippines in 2003 and arranged for them to be shipped to the United States. Upon their arrival, the United States Customs and Border Protection officials seized the cigarettes and stored them in a warehouse pending the government's forfeiture action. P reached a settlement with Customs, and the cigarettes were released to P on the condition that the cigarettes would be sold for export only. P entered into a contract with Alfredo Puchi to purchase the cigarettes to be sold for export only. P agreed to have the cigarettes transported to D's warehouse in a Free Trade Zone (FTZ) in Nogales, Arizona. Puchi was to pay $166,920 total for the 450 cases of cigarettes. P's customs house broker prepared a customs form, CF 7512, to allow the goods to be moved from the Customs warehouse in Los Angeles. The form states the goods are consigned to 'Inter 'K' c/o FTZ #60.' Upon the arrival of the cigarettes in Nogales, D prepared a 'Warehouse Verification In & Out Freight' form identifying P as the customer. After they arrived, he arranged with D through his customs house broker to have the cigarettes transferred to Puchi's warehouse. Partida sent D a Customs Form 7501 and a letter requesting release of the cigarettes as documentation to withdraw the cigarettes from the FTZ, and D released them to Partida. This transfer was accomplished without P's authorization or approval. Puchi began selling the cigarettes from his duty-free store in Nogales, but did not pay P the contract price for the cigarettes. Puchi paid P only $10,000. P filed a complaint against Puchi and D. P asserted D had 'agreed to act as bailee for P's goods when it accepted custody of the cigarettes and made a zone entry' and that it had breached the bailment contract by releasing the cigarettes to Puchi without P's authorization. P eventually moved for partial summary judgment against D on the issue of liability. The trial court granted that motion, and P then moved for 'final summary judgment' against D on the issue of damages. The court granted the motions and awarded damages and attorney fees. D appealed.

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