Which party bore the risk of Phantom Recall’s death?

Bess Harmon owned a two-year-old Tennessee Walking Horse named Phantom Recall. Harmon, who lived in Tennessee, boarded her horse with Steve Dunn at his stables in Florence, Alabama. Dunn cared for Phantom Recall and showed him at equestrian events. Harmon instructed Dunn to sell the horse for $25,000, and Dunn arranged for his friend Scarbrough to buy the colt. On June 30, Dunn delivered Scarbrough’s $25,000 check to Harmon, who handed over the horse’s certificate of registration and a “transfer of ownership” document.That night at a horse show, Dunn told Scarbrough that he had delivered the check and had the ownership papers in his car. Dunn did not actually give the documents to his friend. Scarbrough knew that Phantom Recall was at Dunn’s stable, where Scarbrough had boarded other horses. Sadly, the colt developed colitis and died suddenly, on July 4. Scarbrough stopped payment on his check, and Harmon sued for her money. The trial court found for Harmon, and Scarbrough appealed.