Leesville Mfg. Co. v. Morgan Wood & Iron Works
Leesville Mfg. Co. v. Morgan Wood & Iron Works
Opinion of the Court
The opinion of the Court was delivered by
The plaintiff sued defendant to' recover $135.75 for lumber sold and delivered, and recovered judgment for $69.49, from which defendant appeals upon exceptions raising the questions which we now consider.
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6. The ninth and tenth exceptions are to the charge given the jury. The defendant requested the Court to charge with reference to; the third counter-claim, as follows:
6 “Fifth. If you find that the plaintiff sold the defendant a second car of lumber, and if the plaintiff declined and failed to fulfill the contract, they would -be liable in damages to the defendant for any loss it might have shown it sustained thereby, and the measure of the defendant’s damages would be the difference in the price of the lumber according to the contract and what the defendant was compelled to; pay for such lumber to supply what the plaintiff failed to furnish; in other words, the market price of the lumber at the. time when; it should have been delivered.” Tbi which the Court responded: “I have already given you specific instructions, in reference to the third alleged counter *347 claim. • If you find that there was a contract, and if the plaintiff 'broke it, then the plaintiff would be liable only for the loss ensuing, but not for 'any special loss or damages, and subject to what I have charged you in that matter, I charge you this proposition.”
In order that it may fully appear what instructions bad previously been given on the subject, we quote at length as follows: “Now, in reference to1 the third counter-claim, where the defendant alleges that plaintiff agreed1 to> ship a carload of lumber for a certain purpose, and for a certain price, and failed to keep the agreement, if any damages naturally resulted, 'as a natural consequence of that failure, then defendant would be entitled toi have compensation for the damages. If the contract is not established, as a matter of course, the defendant would have nothing on the alleged counter-claim. The burden is on the defendant, to prove that there was such1 a contract, and prove the terms of the contract by the preponderance of the evidence; and if you find that the contract was proved, and the defendant suffered any damages, as a natural consequence of the failure of the plaintiff to' keep' the contract, why it is entitled to have compensation to that extent for damages; but unless defendant suffered damages as a natural and proximate result of that failure, it would not be entitled to recover any such damages unless plaintiff had notice that special damages would ensue if it failed toi keep' its contract; and so, if you find that the contract was made between the parties to furnish a car of lumber at a specified price, without any notice to plaintiff that it would be used for any special purpose, or that the defendant would be compelled to take any other steps to procure lumber in the place of that which plaintiff was to furnish, in case of failure of plaintiff to furnish it, I say, unless you. find that defendant was compelled toi resort to other means to' get lumber for the specified purpose, and that the plaintiff knew that’defendant would be put toi such expense, then there could be no damages of a special character for which plaintiff would be liable. For instance, if you should *348 find that the defendant and the plaintiff entered into1 a contract to furnish that last mentioned car of lumber at a specified price, and if there was no special purpose mentioned, but merely to be used in the defendant’s business, general business, then there can be no> special damages ensuing to the defendant, even though the defendant after-wards went into1 the market and bought other lumber in the place of that at a different and greater price, because that would not be incumbent on the defendant to do that he could do it or not, just as he pleased, there was no necessity for the defendant other than the purpose of its own business, to do it; so, if you find that to be the case, then the defendant would not be entitled to1 any damages for the difference between the price of lumber agreed to be furnished and this last mentioned car which defendant purchased elsewhere for the general purpose of his business. It is only the direct and proximate consequences of a man’s act that he can be held responsible for, and if a man agrees1 to furnish goods for another and fails to do¡ it, and the other party is. not compelled to buy goods, in the place of these for some specific purpose, but goes on in the general course of his business and buys other goods, the party whoi had failed to furnish goods under such contract as that, would not be liable for any special damages, enhancement in price, or anything- else that the other party might pay in the general course of business, for goods to1 take the place of those that the party had agreed to furnish, that is, in reference to the third counter-claim. So, if you find, first, that there was such a contract between the parties to furnish that carload of lumber, and you should find further that the defendant suffered damages as a natural consequence of the breach of the contract, it is entitled to' compensation for such damages as that; but if it merely suffered damages arising from the -fact that it went into the market in the general course of its1 business and bought other lumber at a different price, the plaintiff would not be liable for damages on that score, because it would be held' that it was not within the contemplation of the parties at the time the1 contract was *349 made. You will observe in one of these counter-claims it is alleged tfaalt the parties merely agreed, without any reference to special purpose, but merely for the purpose of defendant’s general business, and unless there are damages naturally resulting from the failure to perform the contract by the plaintiff in this case, then he cannot be held responsible for any special damages, unless it is notified that special damages would ensue in case this plaintiff failed to- keep- its- contract.”
The appelant -complains of this charge on- the ground that a seller w-ho- fails to carry out, his contract is equally liable for the difference between the contract price and the market price,, whether the goods were bought for a special purpose or for the general purposes of the buyer’s business, and that 'the effect of the charge was to deny recovery by defendant on- the -counter-claim, -as no special damages- were claimed or proven, but only general -damages to be measured by the difference between, the contract price and the market price o-f the goods at the time and place of delivery. The general rule undoubtedly is that when the vendor fails to deliver goods sold, the vendee is entitled to recover the difference between the contract price and the market value of goods at the time and place appointed for -delivery, and possibly interest. Davis v. Richardson, 1 Bay, 106; Ellison & Co. v. Johnson & Co., 74 S. C., 202; 2 Sutherland on Damages, 365. The defendant was entitled to-have the jury so instructed', if there was evidence of such a contract and its breach. We cannot say that the charge asa whole substantially gave the defendant the benefit of the rule stated, as th-e Court charged defendant’s request sub-je-ct to- his general charge, and in that charge it is positively stated that “if defendant suffered damages arising from the fact that it went into the market in the general course of its business and bought other lumber at a different price, the p-laintiff would not be liable for damages on that score, because it would be held that it was not within the contemplation of the parties at the time the contract was made.”
*350 The difference between the contract price and the market price of goods at the time and place of delivery is something which must follow necessarily arad in the usual course of things, and must, therefore, be held to be within the reasonable contemplation of the contracting parties and to fall within the class of general damages as distinguished from' special damages, which do not arise necessarily and in the usual course of tilings from a breach of contract, but which do- arise from- circumstances peculiar to the special case. Such is the distinction between general and special damages-, as stated in the famous case of Hadley v. Baxendale, 9 Exch., 341, approved and applied in this State in very many cases. There was error, therefore, in the charge.
The respondent seeks -to sustain the judgment on the grounds stated in the “case” for appeal:
1. That the Court erred in allowing -the answer setting up the third counter-claim’ toa be amended after sustaining plaintiff’s -demurrer thereto for insufficiency.
2. In refusing plaintiff’s- motion for nonsuit as1 to die third -counter-claim, when there was no- evidence of any contract, or damages-, in connection therewith.
The judgment of the Circuit Court is reversed and the case - is remanded for a'new trial.
Reference
- Full Case Name
- Leesville Mfg. Co. v. Morgan Wood and Iron Works.
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- Syllabus
- 1. Defendant is not entitled to open and reply unless by his pleadings he admits plaintiff’s cause of action and relies on affirmative defense, so that if plaintiff offered no evidence he would be entitled to judgment on pleadings. 2. Evidence. — Presumption.—A Letter received in due course of mail in response to a letter sent by receiver written on a corporation’s letter head purporting to be signed by its bookkeeper is presumed, in the absence of any showing to the contrary, to be the letter of the corporation whose name is signed to it. 3. Ibid. — Self-Serving Declarations. — A Letter from defendant to plaintiff’s attorney insisting that defendant did not owe plaintiff as much as it claimed and inviting the attorney to look over defendant’s books and papers, in so far as it was an admission of something due plaintiff, could be of no benefit to defendant as evidence, and in so far as it was a denial of the claim sued on, was an unsworn self-serving declaration. 4. Argument. — Attorney has no right to comment in argument on the fact that a letter had been written, which had been ruled out as evidence. 5. Secondary Evidence of Letters by Copy. — That a party had turned over to his attorney all papers he had found pertaining to the case, that he did not remember turning over to him the letter in question, that his attorney did not have the letter, notice to produce having been held insufficient, is not sufficient to admit secondary evidence of contents of the letters in form of copies, because no special search had had made for them. Loss of a paper is a question addressed to discretion of trial Judge and from his ruling there is ordinarily no appeal. 6. Damages. — A seller who fails to carry out his contract to deliver goods is liable for the difference between the contract price 'and the market price at time and place of delivery, whether the goods were bought for a specified purpose, or for the general purposes of the buyer’s business. Such damages necessarily follow in the usual course of things, are within the reasonable contemplation of the contracting parties, and fall within the class of general damages. 7. Amending Pleadings.' — An amendment designed to complete a defectively stated counter-claim is within discretion of trial Judge, and may be permitted by him after sustaining demurrer thereto. 8. Respondent’s Grounds for Sustaining Judgment. — If there be error in refusing nonsuit of counter-claim, it cannot avail respondent on motion to sustain judgment.