Cleveland Co. v. Standard Amusement Co.
Cleveland Co. v. Standard Amusement Co.
Opinion of the Court
In its entry reversing the judgment of the trial court, the court of appeals stated that the judgment below was reversed “for error in the admission of evidence and in the charge of the court; no other error appearing in the record.”
The issues of fact made by the pleadings were found by the jury in favor of the plaintiff and the court of appeals did not find that the verdict was against the weight of the evidence. The record discloses that the contract was made by the parties, as alleged in the petition, and we must accept it as established that the rate fixed in the contract was a reduced rate given in consideration of entering into a contract for a year. The contract contained the following provision: “All advertising copy received hereunder will be subject to the approval or revision of the editorial department. All instructions to the publisher relative to advertisements must be given in writing. The publication of copy last'
It is contended by the defendant in error that if the plaintiff disapproved of the copy furnished it should under the contract have continued the publication of the advertisements theretofore published. That would have required the plaintiff to publish advertisements of pictures which were no longer being shown on its screens by the defendant. Such publication would not only be useless, as between the parties, but would be false and misleading to the public. It would injure the newspaper by undermining the confidence of the public. It is not such a publication as was contemplated by the - contract.
But it is contended by defendant in error, and the court of appeals seems to have entertained the view, that, conceding that defendant committed a breach of the contract by refusing to furnish further copy, plaintiff had no right to sue upon quantum meruit, but should have sued as for a breach of the contract to recover the damages sustained by reason of that breach. The trial court against the objection of the defendant had admitted evidence offered by the plaintiff as to the value 'of the advertising at transient rates in the absence of contract, and charged the jury that on breach of the contract by
In Wellston Coal Co. v. Franklin Paper Co., 57 Ohio St., 182, the court says, at page 185: “The general rule is,- that when full performance of a contract has been prevented by the wrongful act of the defendant, the plaintiff has the right either to sue for damages, or he may disregard the contract and sue as upon a quantum meruit for what he has performed. The plaintiff has pursued the latter course; and it seems well settled, both on reason and authority, that he had the right to do so.” And the court cites with approval a number of cases in support of that proposition.
In the United Press Assn. v. National Newspaper Assn., 237 Fed. Rep., 547, a contract providing for the furnishing of news service for the period of five years was involved. After the expiration of a considerable portion of the term the contract was breached by the defendant. It was held that where one party repudiates a continuing contract the injured party may (1) treat the contract as rescinded and recover on a quantum meruit so far as he has perfornied, or (2) keep the contract alive for the benefit of both parties, being at all times himself ready and able to perform at the end of the time specified in the contract, and sue and recover under the contract, or (3) he may treat the repudiation as putting an end to the contract for all purposes of performance and sue to recover
In a work published in 1920, Williston on Contracts, the rule is stated at page 2641, volume 3, as follows: “Where the plaintiff’s failure to fulfil completely his obligations under the contract is due to the defendant’s default there is no reason for imposing any limitation on the amount which he may recover on a quantum meruit or quantum valebat for what he has done, other than that set by the principles of fair value previously stated.”
In Johnston v. Star Bucket Pump Co., 274 Mo., 414, it is said at page 450: “But in a case where the owner violates or breaches the contract, we universally say the plaintiff can elect to sue in quantum meruit rather than for damages on the contract. If he does so sue, the special contract performs no function in that suit. The defendant cannot undertake to limit the recovery by the terms of the contract, because he has breached the contract. To permit him to use his breached contract to limit a recovery against him, would be to pay to him a premium for his own wrong. The law does not contemplate such.” To the same effect are Woodward on Quasi Contracts, 434; City of Philadelphia v. Tripple, 230 Pa., 480; Wheelock v. Zevitas et al., 229 Mass., 167, and United States v. Behan, 110 U. S., 338, 345.
The language used by the municipal court in its charge was: “I say to you, as a matter of law, that if you find that the defendant committed a breach of the contract by failure to do that which he was
We think that by the clear weight of authority the proposition thus laid down is correct'.
In support of a defense that the prevention was not wrongful it is competent for defendant to show that in the circumstances of the particular case the plaintiff would necessarily have lost more by performing the contract at the agreed price than by not performing. (Wellston Coal Co. v. Franklin Paper Co., supra.) That variation has no application here.
The pleadings in this case.made a direct issue as to whether the rate of 13J cents per line daily was a reduced rate made to defendant in consideration of entering into a contract for the period of one year, and the verdict of the jury resolved this issue in favor of the plaintiff. It is matter of common knowledge that sound business policy would lead the publisher of a newspaper to fix a less rate for advertising when contracts can thereby be secured for long periods of time. The business of a publisher would be in a constant state of uncertainty if he was compelled to rely upon transient advertising from day to day in the making up of his daily issue.
Judgment reversed.
Reference
- Full Case Name
- The Cleveland Co. v. The Standard Amusement Co.
- Status
- Published
- Syllabus
- Breach of contract — •Rights and remedies — Action for damages or quantum meruit — Defenses, — Nonperformance decreases loss of party performing. 1. Where one party to a contract has agreed to render services in the manner described in the contract for a term and at a rate fixed by its provisions, and full performance has been prevented by the wrongful acts of the other party, the injured party may elect to sue for damages or may disregard the contract and sue for the reasonable value of what he has performed. 2. In support of a defense that the prevention was not wrongful it is competent for defendant to aver and prove that in the circumstances of the particular case plaintiff would necessarily have lost more by fully performing the contract at the agreed price than by not performing.