Worrell v. M'Clinaghan
Worrell v. M'Clinaghan
Opinion of the Court
Each of the questions presented to this Court, might be the theme of ample discussion, which, if there were leisure for that purpose, might-become instructing to the profession. We are, however, under pressure at the heels of the Court, and are driven to be' economical of time and words.
The first question is, have the parties to this contract established a measure of redress, that, in legal.contemplation, is a penalty ; or is it a measure of liquidated, stipulated, or stated damages? If the first, then, the plaintiff, Worrell, afforded to the defendants only a security, in writing, for such actual damages as might result from his default in the particulars specified; if the latter, a standard has been fixed behind which the Court cannot go.
The first observation which strikes us is, that if one hundred dollars per month, to be forfeited on failure to complete the building by the first day of June, was intended to be but a security for a sum of damage otherwise to be ascertained, the parties accomplished but little by the deliberate contract— nothing, it would seem, in favor of the party who was intended to be benefit ted, for the employer might have recovered, on general principles, all special damage resulting from a violation of contract by the carpenter; and no surety undertook for him, nor was other security of any kind added to his per
Some writers put such an agreement as that before us upon the footing of alternative or conditional agreements, where a party has the election to perform a stipulation, or, instead thereof, to pay a fixed sum of money. There is no sensible distinction between the present case and that of Fletcher v. Dyche, where a party had contracted to do certain iron work for a certain sum within 6 weeks, and if not, to “foifeit and pay” £10 for every week, until it was finished. Buller, J. said, “ It is as strongly a case of liquidated damages as can possibly exist, and is like the case of demurrage.”
The present is not of that class of cases where the forfeiture is limited to a variety of breaches intended to be prohibited, each one of which was of a precise nature and amount, but it is limited to a single breach, the actual damages resulting from which, would be of uncertain nature and amount: if it related to a failure to furnish a pair of hinges of a certain value, for example, as well as other defaults, we might be startled with the unreasonableness of holding the case to be one of stated damages. But it is of the other character, — it settles the amount of damages, in their nature uncertain, fora well defined default, and presents an instance in which it was both lawful and reasonable that the parties should super-cede the uncertainties and delay attending a contest in testimony, and the expense of calling witnesses, by a measure established for the contingency.
Without running through the cases on this fruitful head of law, we are content to say that we see no room to question that the forfeiture in this case takes the character of damages, liquidated, or stated, and not that of a penalty. This opinion the Judge intimated to the jury as his own, but he did not charge therh upon it as a question of law. This gives rise to the second point of inquiry, to wit:
Ought the jury to have been so instructed as matter of law? We think they should have been so instructed.
No doubt was raised upon the facts of the execution of the contract, and of its binding efficacy. We have already shown that the terms used, upon the question here, were not ambiguous. Now, suppose the jury had found, by way of special verdict, that the contract had been duly executed by the parties and was binding upon them, nothing but its legal construction by the Court as matter of law would have remained. We are not so much accustomed (perhaps unfortunately) as they are in England, to special verdicts. Our verdicts usually are the exponents of a result compounded of •law and fact. Every general verdict, indeed every issue on
We are left to infer from the report, that the jury did not allow the defendants the benefit of the stipulated damages, to which, it has been shown, they were entitled. While we fear that the plaintiff has made a contract which will work harshly upon him, yet it is his contract; we cannot dispense with the law that arises upon it, and, therefore, a new trial must be ordered.
Motion granted. -
Case-law data current through December 31, 2025. Source: CourtListener bulk data.