Fairmount Glass Works v. Cub Fork Coal Co.
Opinion of the Court
delivered the opinion of the Court.
Cub Fork Coal Company and Paragon Colliery Company brought this action in the federal court for southern Indiana to recover from Fairmount Glass Works $32,417, with interest, as damages for breach of a contract to purchase 17,500 tons of coal, at $6.50 per ton f. o. b. mines, deliverable in twelve monthly instalments beginning June 1920. Jurisdiction of the federal court was invoked on the' ground of diversity of citizenship. The Glass Works pleaded in bar several defenses; and it also set up a counterclaim in the sum of $2,000 as damages for failure to make delivery as provided by the contract. Three trials before a jury were had. At each of the first two the verdict was for the defendant; and each time the judgment entered thereon was reversed by the Circuit Court of Appeals with a general direction for a new trial, 19 F. (2d) 273; 33 F. (2d) 420. On the" third trial the plaintiffs recovered a verdict for $1; and, after further proceedings, judgment was entered thereon with costs.
The plaintiffs appealed to the Circuit Court of Appeals “for the reasons set forth in the assignment of errors.”
The Circuit Court of Appeals deemed it unnecessary to consider the nine instructions relating to liability, since the verdict for the plaintiffs “ upon the issues which determined liability was amply sustained by the evidence.” Nor did it discuss the two instructions which alone referred to the amount of damages recoverable. But it made an order substantially as follows: If within thirty days the parties shall stipulate that the judgment be
The reasons assigned by the Circuit Court of Appeals for its action were substantially these: It appears that a large sum is recoverable as damages; that the minimum recoverable may be determined with substantial accuracy by computation, for the defendant “ breached its contract without justification on December 4, 1920” and “the market price of coal is shown for each day of the month, and the average price per month is also disclosed, so that the actual amount of damages is quite definitely ascertainable ” despite “ a slight discrepancy in the statements of witnesses.” The amount shipped and the amount received are also quite definitely ascertainable, despite a discrepancy “ due apparently to the fact that the railroad confiscated a small amount of the coal on several occa
If the refusal to grant the motion for a new trial was deemed by the Circuit Court of Appeals plain reversible error it was at liberty under its rules to notice the error although not assigned;
First. The rule that this Court will not review the action of a federal trial court in granting or denying a motion for a new trial for error of fact has been settled by a long and unbroken line of decisions;
It has been suggested that a review must be denied because of the historical limitation of the writ of error to matters within the record, of which the motion for a new trial was not a part.
Second. It is urged that the motion for a new trial presented an issue of law. The argument is that on the motion or on the court’s own initiative the verdict should have been set aside as inconsistent on its face, since if the plaintiffs were entitled to recover at all they were entitled to substantial, not merely nominal, damages. The case, it is contended, is comparable to one in which the award of damages exceeded a statutory limit, see Southern Ry. Co. v. Bennett, 233 U. S. 80; or was less than an amount undisputed, Glenwood Irrigation Co. v. Vallery, 248 Fed. 483; Stetson v. Stindt, 279 Fed. 209; or was in pursuance
To regard the verdict as inconsistent on its face is to assume that the jury found for the plaintiff and failed to perform its task of assessing damages. The trial judge was not obliged so to regard the verdict. The defendant had insisted upon several defenses and had set up a counterclaim. The plaintiffs were not entitled to a directed verdict. The evidence was voluminous; and, on some issues at least, conflicting. The instructions left the contested issues of liability to the jury. The verdict may have represented a finding for the defendant on those issues;
Third. It is urged that the refusal to set aside the verdict was an abuse of the trial court’s discretion, and hence reviewable. The Court of Appeals has not declared that the trial judge abused his discretion. Clearly the mere refusal to grant a new trial where nominal damages were awarded is not an abuse of discretion. This Court has frequently refrained from disturbing the trial court’s approval of an award of damages which seemed excessive or inadequate,
The judgment of the Circuit Court of Appeals is reversed and that of the District Court is affirmed.
Reversed.
Rule 10 (4) of the Circuit Court of Appeals for the Seventh Circuit provides: “ The court may notice a plain error not assigned.” See Reliable Incubator & Brooder Co. v. Stahl, 105 Fed. 663, 668. A similar rule obtains in this Court; and in each of the other Circuit Courts of Appeals except the Eighth. For examples of the application of these Rules, see United States v.. Tennessee & C. R. Co., 176 U. S. 242, 256; Columbia Heights Realty Co. v. Rudolph, 217 U. S. 547, 552; Weems v. United States, 217 U. S. 349, 358; Mahler v. Eby, 264 U. S. 32, 45; New York Life Ins. Co. v. Rankin, 162 Fed. 103, 108. Compare Pierce v. United States, 255 U. S. 398, 405-406.
Contrast Reliance Coal & Coke Co. v. H. P. Brydon & Bro., 286 Fed. 827, 832, where the moving party was the defendant, against whom the verdict had gone.
See e. g., Henderson v. Moore, 5 Cranch 11, 12; Marine Ins. Co. v. Young, 5 Cranch 187, 191; The “Abbotsford,” 98 U. S. 440, 445; Railway Co. v. Twombly, 100 U. S. 78, 81. In numerous cases no reference is made, in denying review, to the grounds for the motion. E. g., Barr v. Gratz, 4 Wheat. 213, 220; Brown v. Clarke, 4 How. 4, 15; Kerr v. Clampitt, 95 U. S. 188, 189; Ayers v. Watson, 137 U. S. 584, 597; Van Stone v. Stillwell & Bierce Mfg. Co., 142 U. S. 128, 134; Holder v. United States, 150 U. S. 91, 92; Blitz v. United States, 153 U. S. 308, 312; Clune v. United States, 159 U. S. 590, 591; Addington v. United States, 165 U. S. 184, 185; Pickett v. United States, 216 U. S. 456, 461.
Railroad Co. v. Fraloff, 100 U. S. 24, 31; Wabash Ry. Co. v. McDaniels, 107 U. S. 454, 456; Arkansas Cattle Co. v. Mann, 130 U. S. 69, 75; Fitzgerald Constr. Co. v. Fitzgerald, 137 U. S. 98, 113; Lincoln v. Power, 151 U. S. 436, 438.
Chesapeake & Ohio Ry. Co. v. Proffitt, 218 Fed. 23, 28; Ford Motor Co. v. Hotel Woodward Co., 271 Fed. 625, 630; Alaska Packers’ Assn. v. Gover, 278 Fed. 927, 929; Boston & Maine R. Co. v. Dutille, 289 Fed. 320, 324; Louisiana Oil Refining Corp. v. Reed, 38 F. (2d) 159, 162; Geo. E. Keith Co. v. Abrams, 43 F. (2d) 557, 558; Southern Railway Co. v. Walters, 47 F. (2d) 3, 7; Grand Trunk W. Ry. Co. v. Heatlie, 48 F. (2d) 759, 761.
Act of September 24, 1789, c. 20, 1 Stat. 84-85; compare Rev. Stat. § 1011, 28 U. S. C., § 879. See Marine Ins. Co. v. Young, 5 Cranch 187, 190; and the discussion in 32 Columbia Law Review, pp. 860-869.
See Metropolian R. Co. v. Moore, 121 U. S. 558, 573; Williamson v. Osenton, 220 Fed. 653, 655.
Zacharie v. Franklin, 12 Pet. 151, 163; United States v. Hodge, 6 How. 279, 281; Warner v. Norton, 20 How. 448, 461; Pomeroy’s Lessee v. Bank of Indiana, 1 Wall. 592, 597-598; Freeborn v. Smith, 2 Wall. 160, 176; Sparrow v. Strong, 3 Wall. 97, 105; Ewing v. Howard, 7 Wall. 499, 502; Chicago v. Greer, 9 Wall. 726, 735; Insurance Co. v. Barton, 13 Wall. 603, 604; Newcomb v. Wood, 97 U. S. 581, 583-584; Railway Co. v. Heck, 102 U. S. 120; Springer v. United States, 102 U. S. 586, 595; Missouri Pac. Ry. Co. v. Chicago & Alton R. Co., 132 U. S. 191; Fitzgerald Constr. Co. v. Fitzgerald, 137 U. S. 98, 113; Holmgren v. United States, 217 U. S. 509, 521.
At early common law in England writ of error and motion for a new trial were mutually exclusive remedies. See 1 Holdsworth, History of English Law, p. 226. The motion was addressed to the discretion of the court in banc. 3 Bl. Comm. 392. Review by the Exchequer Chamber of the refusal to grant a new trial was allowed in
Compare, also, James v. Evans, 149 Fed. 136; East St. Louis Cotton Oil Co. v. Skinner Bros. Mfg. Co., 249 Fed. 439; Eteepain Co-op. Society v. Lillback, 18 F. (2d) 912, 915.
See Olek v. Fern Rock Woolen Mills, 180 Fed. 117; Vanek v. Chicago G. W. R. Co., 252 Fed. 871; Fulmele v. Forrest, 27 Del. 155; 86 Atl. 733. In a number of instances state appellate courts have taken this view of the verdict. Spannuth v. C. C. C. & St L. Ry. Co., 196 Ind. 379; 148 N. E. 410; Hubbard v. Mason City, 64 Iowa 245; 20 N. W. 172; Wavle v. Wavle, 9 Hun 125; Snyder v. Portland Ry., L. & P. Co., 107 Ore. 673, 678-684; 215 Pac. 887; Krulikoski v. Sparling, 82 Wash. 474; 144 Pac. 692 (but see Bingaman v. Seattle, 139 Wash. 68, 72-73; 245 Pac. 411); see Haven v. Missouri R. Co., 155 Mo. 216, 223 ; 55 S. W. 1035. Contra: Miller v. Miller, 81 Kans. 397; 105 Pac. 544; Bass Furniture Co. v. Electric Supply Co., 101 Okla. 293; 225 Pac. 519; see Johnson v. Franklin, 112 Conn. 228; 152 Atl. 64. Compare Pugh, v. Bluff City Excursion Co., 177 Fed. 399, in which the jury returned a verdict for nominal damages after the trial court, upon the jury’s request to rule on the propriety of this, gave an instruction couched in generalities.
Compare Minneapolis, St. P. & S. S. M. Ry. Co. v. Moquin, 283 U. S. 520, in which the trial court, expressing the opinion that the verdict was excessive because of passion and prejudice, nevertheless refused, on the filing of a remittitur, to grant a new trial.
See Wilson v. Everett, 139 U. S. 616, 621; Herencia v. Guzman, 219 U. S. 44, 45; Southern Ry. Co. v. Bennett, 233 U. S. 80, 86-87; St. Louis, I. M. & S. Ry. Co. v. Craft, 237 U. S. 648, 661; Louisville & N. R. Co. v. Holloway, 246 U. S. 525, 529; and cases cited in note 4, supra.
See cases cited in note 5, supra. Compare, however, Cobb v. Lepisto, 6 F. (2d) 128.
See Rule 9, paragraph 1, of the Rules of the Circuit Court of Appeals for the Seventh Circuit; and Rule 8, paragraph 1, of the Rules of this Court. Also Phelps v. Mayer, 15 How. 160, 161; Hickory v. United States, 151 U. S. 303, 316; Ford Hydro-Electric Co. v. Neely, 13 F. (2d) 361.
Dissenting Opinion
dissenting.
A verdict found in contravention of the instructions of the court may be reversed on appeal as contrary to law.
So much the prevailing opinion apparently concedes.
By the instructions of the trial judge they were required, if they found that the defendant had broken its contract, to award to the plaintiffs the difference between the contract price of the coal and its market value, after allowance for the defendant’s counterclaim. The evidence most favorable to the defendant, both as to claim and counterclaim, made it necessary, if there was any breach, to return a substantial verdict, the minimum being capable of accurate computation. The distinction is not to be ignored between this case of a breach of contract and the cases cited in the prevailing opinion where the liability was in tort. Here the minimum, if not the maximum, damages are fixed and definite. There the discretion of the jury was not subject to tests so determinate and exact. The question is not before us whether even in such circumstances there may be revision on appeal. Cf. Pugh v. Bluff City Excursion Co., 177 Fed. 399. Enough for present purposes that in the circumstances of the case at hand the verdict for $1 is a finding that the contract had been broken, and this irrespective of the motive that caused the verdict to be given. What the motive was we cannot know from anything disclosed to us by the record. Nothing there disclosed lays a basis for a holding that the nominal verdict for the plaintiffs was designed to save them from the costs which the law would have charged against them if there had been a verdict for defendant. The jury were not instructed as to the liability for costs, and for all that appears had no knowledge on the subject. Nor would such a motive, if there were reason to ascribe it, rescue them from the reproach of disobedience and error. It would merely substitute one form of misconduct for another. It would do this, moreover, in contradiction of the record. By no process of mere
Justice is not promoted in its orderly administration when such conduct is condoned.
Reference
- Full Case Name
- FAIRMOUNT GLASS WORKS v. CUB FORK COAL CO. Et Al.
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- 354 cases
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