Cary v. Harris
Cary v. Harris
Opinion of the Court
The plaintiff seeks to recover for rents for the Mountain Meadows Inn, a summer resort hotel near Asheville, for the season of 1917. These rents were calculated upon the amount of the gross receipts under the terms of the written contract of lease and are not in dispute. The defendant set up a counterclaim for $5,000 for breach of the contract of lease, claiming that she had been damaged by reason of the loss of profits and loss of business and extra expense caused during the season of 1917, on account of the failure of the plaintiff to comply with the contract of lease and supply the hotel property during the summer of 1917 sufficient water for the use of the guests in the hotel. That the water supply, by reason of the neglect of the plaintiff, failed, and the guests left the hotel in consequence, the business was broken up, and the defendant sustained loss amounting to several thousand dollars.
Witness further testified that the place would have accommodated eighty to eighty-five people, and that August was the best month of the year at Mountain Meadows Inn. That the actual receipts for 17 August were $2,990.69; for September, $1,864.64; for October, $502.71; that according to her estimate the income for the property during August, 1917, but for the scarcity of water would have been $5,538.15, and for September the income would have been between $3,000 and $4,000, and for October between $1,000 and $2,000; that her loss during the summer of 1917 on account of the scarcity of water was between $5,000 and $6,000; that hotel rates had increased 50 per cent over what they were in 1914.
Witness further testified that she paid seventy-odd dollars for extra help for carrying water, and that she suffered some losses on account of the condition of the roads and want of a telephone line to the hotel; that
Witness further testified that in her opinion the value of the lease for the year 1917, if water had been furnished, would have been at least six. thousand dollars, and that as it was she made no money at all, but actually lost money.
There was evidence tending to prove the rainfall during the season of" 1917, and that if the shed, 52 feet by 78 feet, had been constructed as it formerly was so as to let the water falling on it into the reservoir, an-ample supply of water for the season would have been furnished. There was also evidence that Oarey instructed Reed to fix the roof over the reservoir in the cheapest way possible, and to so construct it that the water would pour off on the outside and not go into the reservoir. This-was in February, 1917. There was evidence corroborating the defendant that she told Carey in November, 1916, that the rain water was-necessary. There was evidence that the reservoir was full when the hotel opened for the season of 1917, and that the water gave out entirely by 5 August. There was evidence that there was an abundance of rain during the season of 1917; there was also much other testimony to the-effect that a large number of guests left the hotel in August, 1917, for lack of water, and many other persons refused to take rooms at the-hotel because they had no water for baths and toilets.
We differ with his Honor in the conclusion that substantial damages-may not be recovered by the defendant if the evidence is to be believed.. The rule is, in the admeasurement of damages in a case of this kind,, that the party injured may recover all the damages, including gains-prevented as well as losses sustained, as were fairly within the contemplation of the parties and capable of being ascertained with a reasonable-degree of certainty. Nance v. Tel. Co., 177 N. C., 313; Gardner v. Tel. Co., 171 N. C., 405; Hardware Co. v. Buggy Co., 167 N. C., 423; Wilkerson v. Dunbar, 149 N. C., 20.
In the Nance case, Mr. Justice Wallcer says: “In an action for damages the plaintiff must prove as part of his case both the amount'and cause of his loss. Absolute certainty, however, is not required, but both the cause and the amount of the loss must be shown with reasonable-certainty. Substantial damages may be recovered though plaintiff can only give his loss approximately.” Hale on Damages, sec. 70; Sutherland on Damages, sec. 70.
In section 868, a case from New York is discussed, wherein tbe plaintiff was the lessee of a hotel and showed actual receipts of the property for previous years, and daily receipts for some months, and that there was a breach of contract. The following language is quoted with approval : “When it is borne in mind that the plaintiff kept a refectory and boarding-house for the resort of daily visitors for their various meals, and of transit persons for their lodging, it is difficult to suggest any other mode of ascertaining the effect upon the plaintiff’s business. To say that he must prove what persons were prevented from visiting his house and what meals they would have taken and paid for is to suggest a mode of proof obviously impracticable, and if it was done it would still leave the same inquiry, ‘What would have been the profit of the meals they took and paid for V ”
Plaintiff was allowed to recover upon a similar contract in the case of Union Pacific R. R. Co. v. Travelers’ Insurance Co., 83 Fed., 676.
In Wilkinson v. Dunbar, supra, it is said by Mr. Justice Hoke: "“When prospective damages are allowed to the injured party as arising under a breach of contract, they must be such as are in reasonable contemplation of the parties and capable of being ascertained with a reasonable degree of certainty; and while profits prevented are frequently held to be excluded, they are those expected by reason of collateral engagements, or dependent to a great extent on the uncertainty of a trade and fluctuations of the market.”
It follows from all these authorities that the profits lost by the lessee ■of a hotel, whether those which were the immediate fruits of the business or those which were remote, if the contract was made with reference to them, are recoverable if they can be ascertained with reasonable certainty. That the profits to be made out of a lease of a hotel in conducting the business thereof are within the contemplation of the parties to the lease is a proposition too plain for discussion. An injury to the hotel business consists, mainly of a loss of profits, and, therefore, it has been held that where a lessee conducts the business himself, it is competent for him to testify, as the defendant did in this case, to the value of the business based upon the capacity of the hotel, the average number •of guests, the rates charged, and the average daily profits. Allison v. Chandler, 11 Mich., 542. The law does not require impossibilities, and therefore does not require a higher degree of certainty than the nature of the ease admits.
As said by Mr. Sutherland, sec. 870: “Juries are allowed to act upon probable and inferential as well as direct and positive proofs, and when
As Mr. Sutherland again says, see. 70: “If a regular and established business is wrongfully interrupted, the damage thereto can be shown by proving tbe usual profits for a reasonable time anterior to tbe wrong complained of. . . . There is no good reason for requiring any higher degree of certainty in respect to tbe amount of damages than in respect to any other branch of a cause.”
If tbe evidence of tbe defendant is to be believed, there was a breach of tbe contract of lease upon tbe part of tbe plaintiff, and according to-her testimony tbe jury would have been warranted in answering tbe second issue “Yes.” Tbe testimony of tbe defendant also furnished reasonable data from wbicb tbe jury could have approximated tbe damages she sustained by reason of such breach during tbe season of 1917„ witb reasonable certainty.
New trial.
Reference
- Full Case Name
- MARY CARY v. TEMPE HARRIS
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- 9 cases
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- Published