Wilderness Society v. Cohen
Wilderness Society v. Cohen
Opinion of the Court
Appellant, a nonprofit organization, offered by brochure various trips into America’s wilderness areas. The prospectus contained, on the last page, the application form used by appellees to make their reservations. Above this form, the following language appeared:
In the event of a cancellation, a refund will be made only if the reservation is taken by another applicant. This action is necessary because of the need to contract well in advance for horses, food, and equipment. Whenever possible, an effort will be made by the Society to fill cancelled reservations in order to permit refund.
Appellees submitted their application with a deposit and “several days later” paid the remainder of the trip’s price— $285 per person, or $570 total. Around August 1, 1966, about 20 days before the trip was to commence, appellees notified appellant that they would not take the trip.
The riding trip through Yellowstone National Park was conducted and “packed” by one Glover. Under the terms of its contract with Glover, appellant paid $235 per reservation. Appellant had until August 10, 1966, to notify Glover of “the final number of riders enrolled in the party.”
Appellees did not show up for the trip, and they brought this action to recover the price paid. The trial court, sitting without a jury, held that appellant was under a duty to mitigate damages, that appellant failed to carry out this duty, and that appellees were thus entitled to a return of part of the contract price — $235 per person. We reverse.
In their brief appellees make the flat statement that they breached their contract. From that premise, by an argument we cannot follow, they conclude they are entitled to recover. It is quite plain that, despite appellees’ assertion to the contrary, they did not breach their contract. The contract was unilateral in the sense that it consisted of a promise on the part of The Wilderness Society supported by an executed consideration, i. e., the payment of the charges by appellees.
The contract plainly stated that in the event of cancellation a refund would be made only if the reservation was taken
Implicit in appellees’ “theory of recovery” is the doctrine of mitigation of damages, but that doctrine relates to a defense and does not itself give rise to a right of recovery. Indeed, since appellees had not breached their contract, the Society had not been damaged, and had no damages to mitigate. Nor can we find any other “theory” by which we can sustain the holding of the trial court. Like mitigation of damages, any discussion of forfeiture or liquidated damages is completely irrelevant to the present case. For the question of damages does not arise until a right to recovery has first been established. Further, recovery under a theory of restitution, be it unjust enrichment or quantum meruit, is not available to appel-lees, because the return of the cash price for not going on the trip was expressly covered by the contract terms.
In summary, the case is one where two people paid for a trip which they could have taken, but for reasons purely personal to them decided against it, and sought a refund on grounds not permitted by their agreement. There is no basis for recovery.
Reversed with instructions to enter judgment for appellant.
. See Friedman v. Decatur Corp., 77 U.S.App.D.C. 326, 135 F.2d 812 (1943); Craddock v. Greenhut Constr. Co., 423 F.2d 111 (5th Cir. 1970).
. Certainly the failure of appellees to take the trip cannot be viewed as a failure by appellant to provide the trip.
. See Leba v. Sills, D.C.Mun.App., 175 A.2d 599 (1961) (quantum meruit); Gebhardt Bros., Inc. v. Brimmel, 31 Wis.2d 581, 143 N.W.2d 479, 481 (1986) (unjust enrichment); Smith v. Stowell, 256 Iowa 165, 125 N.W.2d 795, 800 (1964) (unjust enrichment); Abinet v. Mediavilla, 5 A.D. 679, 169 N.Y.S.2d 231, 232 (1957) (quantum meruit).
Dissenting Opinion
(dissenting) :
Of each $285 which Wilderness, a nonprofit organization, received as payment for its horseback trip through Yellowstone Park, it retained $50 for its overhead and paid over $235 to one Glover, who provided the horses, equipment and food, and guided the travellers. Appellees advised Wilderness that they could not come well before Wilderness became obligated to Glover to pay for them. Had appellees at that time owed Wilderness any balance for the trip, I take it that the majority would recognize that Wilderness, the non-breaching party to the contract, could not have recovered more than $100,
What concerns me is that solely because appellees happened to have paid the entire amount due (and as a result find themselves suing Wilderness rather than defending or counterclaiming in a suit
I believe that an application of sound contract law principles, as well as logic, requires an affirmance in this case of the trial court’s award of $470 to appellees and retention by Wilderness of $100. The Restatement of Contracts Section 357 (1932), adopted by this court in Bainum v. McGrady, D.C.Mun.App., 117 A.2d 462, 464 (1955), provides (footnote added):
(1) [wjhere the defendant [i. e., Wilderness] fails * * * to perform his contract and is justified therein by the plaintiff’s [i. e., appellees’] own * * * non-performance of a condition, but the plaintiff has rendered a part3 performance under the contract that is a net benefit to the defendant, the plaintiff can get judgment, except as stated in Subsection (2), for the amount of such benefit in excess of the harm that he has caused to the defendant by his own breach * * * if
* * * * * *
(b) the defendant, with knowledge that the plaintiff’s * * * non-performance of condition has occurred or will thereafter occur * * * accepts the benefit of it, or retains property received although its return in specie is still not unreasonably difficult or injurious.
(2) The plaintiff has no right to compensation for his part performance * * * if the contract provides that it may be retained and it is not so greatly in excess of the defendant’s harm that the provision is rejected as imposing a penalty. (Emphasis added.)
See also Amtorg Trading Corp. v. Miehle Printing Press & Mfg. Co., 206 F.2d 103, 105-106 (2d Cir. 1953). Wilderness failed to provide the trip for the appellees, but its failure to perform was justified by the wrongful refusal of appellees to accept performance. See 5 A. Corbin, Contracts § 1233 (1951); 6 Id., § 1264 (1962). Since I believe it clear that Wilderness has received a benefit greatly “in excess of the harm” appellees caused it, I would allow appellees to recover the “net benefit” to Wilderness of $470.
The majority believes that a refund to appellees is barred by the contract between the parties. The provision permitting refund to one who cancels his reservation if his place were taken by someone else
. Nor could it have retained, more than $100. See the discussion of Restatement of Contracts § 357, infra.
. A student contracted for a study course to be completed at home and then augmented by two weeks’ training in another city. He discontinued the course before undergoing the two weeks’ training and was sued for the balance of his payment for the course. We denied recovery because there was no showing that the plaintiff had spent or become obligated to spend money for that part of the course to be given away from his home.
.It is immaterial that appellees may be considered to have fully performed, because “the consideration due from the defendant [appellant] is something other than a liquidated debt [i. e., the trip to Yellowstone].” Restatement of Contracts § 350 & Comment b (1932).
. Where, as here, the return of money, and not specific property, is requested, the question of the difficulty of “return in specie” is not presented.
. There is considerable doubt that replacements could have been added because the Yellowstone Park trip was already oversubscribed when appellees cancelled.
Reference
- Full Case Name
- The WILDERNESS SOCIETY, a D.C. Nonprofit Corporation, Appellant, v. Charles L. COHEN and Beatrice Goldberg, Appellees
- Cited By
- 4 cases
- Status
- Published