Bentley v. Western Union Telegraph Co.
Bentley v. Western Union Telegraph Co.
Opinion of the Court
The plaintiff, in October, 1913, shipped from Milton, Oregon, to El Centro, California, a carload of apples, consigned to the Imperial Valley Mercantile Company. A draft was drawn on the latter for the price of the apples at $2 per box, and sent with bill of lading attached through the Milton bank to the First National Bank of El Centro for collection. The mercantile company refused to accept the apples at the price named, but agreed to accept such as graded extra fancy at $1.75 per box, and the balance at $1.25 per box, and telegraphed that offer to plaintiff. In answer, the plaintiff through his agent, the Milton Bank, filed a telegram with defendant directing the bank in El Centro to accept $1.80 per box for the carload. By mistake of defendant the price was made to read $1.08 per box. The El Centro bank delivered the bill of lading to the mercantile company and accepted payment for the apples at the rate of $1.08, instead of the $1.80 demanded by the seller. The error was discovered by the bank within a few hours after it had collected for the apples at the rate of $1.08 per box, and the bank, in making its remittances to plaintiff, gave him a statement of the error. The defendant endeavored to get the mercantile company to pay the difference between $1.08 and $1.80 as the price per box, and the latter agreed to settle on a basis of $1.50 per box. The plaintiff, rather than receive that price, elected to accept the payment of $1.08 per box and bring his action against the defendant for the difference. The case was tried to a jury, which returned a verdict against defendant of $533.05, the full difference, with interest, between the price quoted in the message offered the defendant and the price named in the message as transmitted by it. The defendant appeals, assigning a number of errors whose discussion is grouped under two heads: (1) The error in the telegram was not the proximate cause of the loss, since the addressee must have known that an error had been committed, and no sale was effected by the erroneous
It appears from the evidence that both the Oregon and California banks were the agents of respondent in the sale of the apples, but that the California bank, when it received the telegram to sell at $1.08 per box, was in ignorance of the fact that, the day before, the mercantile company had tendered its principal an offer largely in excess of that price. The bank accordingly at once closed the sale, delivering the apples and accepting payment at the erroneous figures named in the telegram. The mercantile company was doubtless aware that it was getting the apples at a lower price through some error, since they were originally priced to it at $2 per box, and it had made a counter offer of $1.75 and $1.25 on the two grades in the shipment, the larger portion of the boxes ranking as the highest grade. The market price of the apples at El Centro was in evidence as being $1.80 per box for extra fancy Oregon apples. Respondent testified that the whole shipment was of this grade. Confirmation of the fact that the purchaser was aware of the mistake in the price quoted by the seller’s agent is shown by the fact that he was afterwards willing to pay an additional 42 cents per box, bringing the price up to $1.50 per box for the entire carload.
It is the contention of appellant that, under this state of facts, respondent had the right to disaffirm the sale on account of the mistake, but that, when he confirmed the sale, this was a new contract entered into by him subsequent to the telegram, one not dependent on the transmission of the telegram, and hence his loss was not the proximate result of the appellant’s error in transmission. We cannot agree with this deduction of counsel. The apples lay in El Centro awaiting the result of the dickering of the parties as to price. When the seller’s agent received a telegram instructing sale at a certain price, it at once closed with the purchaser at that price. This contract was entered into at a mistaken
We think., however, there is merit in appellant’s contention that it was the duty of respondent to minimize his damages, where such a course was readily available to him. The evidence shows that, after the telegram erroneously transmitted by appellant had been acted on to the prejudice of respondent, the purchaser, who had taken advantage of the error, offered- to increase his payment for the apples from $1.08 to $1.50 per box. This the respondent refused to accept, relying upon the liability of the telegraph company to
“It is the duty of plaintiff on learning of the negligence of the telegraph company to make reasonable efforts to render the resulting damage as light as possible, and he cannot recover damages which by such care and diligence he could have avoided.” 37 Cyc. 1757.
citing Western Union Tel. Co. v. Jeanes, 88 Tex. 230, 31 S. W. 186; Western Union Tel. Co. v. Reid, 83 Ga. 401, 10 S. E. 919; Postal Tel. Cable Co. v. Schaefer, 110 Ky. 907, 62 S. W. 1119.
We think that the loss occasioned respondent was the natural and proximate result of the negligence of appellant for which the latter should respond in damages. But we think that it was also the duty of respondent to minimize his damages by the acceptance of the offered increase in price that the evidence shows the purchaser was willing to pay.
Among the errors assigned is that the attorney for respondent, at the opening of the trial, read an assignment by respondent to appellant of any claim which the former might have against the Imperial Valley Mercantile Company arising out of its purchase of the apples pursuant to the erroneous telegram. The respondent asked
The judgment will be reversed, with instructions to modify it as indicated in the opinion.
Parker and Mount, JJ., concur.
Dissenting Opinion
(dissenting)—I am obliged to dissent from this disposition of this case. It is illogical and erroneous upon any theory. If the judgment is not to be affirmed upon the facts and the law in full, it should be only upon the facts that the Imperial Valley Mercantile Company knew, or had every reason to believe, that the price stated in the telegram as delivered to it was not the true price and acted upon it in bad faith, and that no contract was made between the respondent and it, and reversed. Where oranges worth $2.60 per box were quoted by error in transmitting the message at $1.60 per box, the court in Germain Fruit Co. v. Western Union Tel. Co., 137 Cal. 598, TO Pac. 658, 59 L. R. A. 575, held that the difference in price was sufficient to put the receiver on inquiry as to the correctness of the message; that, when the receiver received them at this price, it did so intending to defraud the seller; that, in such case, the seller had a good cause of action against the buyer and could not waive it, permit the buyer to get away with its fraudulent advantages, and recover the entire loss from the telegraph company. But I do not approve that case. To do so would be to compel the seller to go to a distant jurisdiction in such case as this, waiving his remedy against an accessible and responsible concern, primarily liable, and resort to all the hazards of recovering his loss. And the majority disapprove that doctrine and sustain the liability of the appellant here.
After discovering the error in transmitting the message, the telegraph company attempted to induce the buyer to adjust the matter by paying the difference between $1.08 per box and $1.80 per box. The buyer, for a settlement in full, made a tentative offer to the effect that it would be willing to pay $1.50 per box. There was no definite offer, and no tender then or thereafter made to that effect.
Had respondent acted upon that suggestion and agreed to accept the $1.50 per box, it would have been equivalent to abandoning the previous offer at $1.80 per box, making a new contract for $1.50 per box, settling at that price, and forever waiving his claim and right to recover his entire loss from any source. And we certainly would so hold. Had the negligent telegraph company given the respondent the opportunity of accepting from the buyer such portion of the loss as the buyer was willing to stand, to minimize the damages to it, a different condition would
The principal' case cited by the majority, Fererro v. Western Union Tel Co., is not analogous. In that case, the receiver of a negligently altered message, upon discovering the real price quoted, refused to accept delivery of the goods.
After the goods were delivered to the buyer by respond
Upon the facts in this case, I am convinced the case was properly submitted to the jury, and
Ellis, C. J., concurs with Holcomb, J.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.