105 Tenn. 187 | Tenn. | 1900
Lead Opinion
The plaintiff in error, in the year 1891, was engaged in the iron foundry business in Memphis, Tennessee, and the TJnion Compress & Storage Co. owned at that time a plant erected at Clarksdale, Mississippi, for compressing cotton in bales for shipment to market. The power used by the latter company in doing this work was furnished by two sets of cylinders, in part steaih and in part hydraulic, one of which was high and the other low pressure. In the winter of 1896-7 the low pressure hydraulic cylinder and some of the pipes communicating between it and the compress proper were permanently injured. ■This disabled the entire plant, and made it necessary for the compress company to have not only a new cylinder and new pipes, but also other
“August 17, 1897.
“This contract between the Livermore Foundry & Machine Go., of Memphis, Tennessee, and the Union Compress & Storage Go., of Olarksdale, Miss., witnesseth:,
“That the said Livermore Foundry & Machine-Go., for and in consideration of a sum of money, amount herein mentioned, agree to furnish the necessary labor and material for the repair’s on the compress machinery, to wit: •
“To furnish one new cylinder head, drilled and fitted per old one.
“To furnish one new piston head, fitted with packing rings and springs, with additional metal added.
“To furnish one new low pressure hydraulic cylinder.
“New special bolts for steam cylinder head and rear end of both hydraulic cylinders.
“To repair cracked steam cylinder in best possible manner and make tight.
“To reline high pressure cylinder with seamless drawn tube, so as to be true and smooth.
*191 “To furnish and set in place one piece of four-inch, extra heavy hydraulic pipe, 10 feet 9 inches long, and to bend same so as to conform to shape of old one.
“It is further agreed that the Livermore Foundry & Machine Co. shall take down and dismantle all above mentioned parts of machinery and ship same to Memphis without expense to' the Union Compress & Storage Co., and upon completion of repairs at Memphis to return same to Olarksdale, Miss., and erect same in place without expense to the said Union Compress Co.
“The Livermore Foundry & Machine Co. agrees to complete the above mentioned repairs and press ready for service within the period of fifty-five days from the date of the contract.
“For the faithful execution of this contract the Union ' Compress & Storage Co. agrees to pay the Livermore Foundry & Machine Co. the sum of two thousand and thirty-four dollars on the following terms:
“One thousand, dollars to be paid when repairs are delivered aboard cars at Clarksdale, Miss., and the balance, $1,034, to be paid within thirty days after the completion and satisfactory test of the work.
“It is further agreed that in the event during the progress of the work, or testing of the press, other work, repairs or changes* not enumerated in this contract are made, same shall be paid for*192 by the Union Compress & Storage Co. at such rates and prices as may be agreed upon.
“The Livermore -Foundry & Machine Co. agrees to allow the Union Compress & Storage Co. the sum of six dollars per ton f. o. b. Memphis for scrap iron, and copper at 8 cents per pound.”
Although by this contract the work was to be finished and the various mechanical appliances were to be put in place, ready for the operation of the compress, within fifty-five days from its date, a much longer period elapsed before this was done. In the early part of November, however, they were adjusted, in part at least, and subjected to a test, which was unsatisfactory to Mr. Leach, who was on the ground as a skilled employee representing the plaintiff in error in placing the new machinery and in the experiment made. Finally, after material changes had been made under his direction, he notified the officers of the compress company that he would be ready to make another test on the 11th of November, and asked that he be supplied by the company with a sufficient working crew for this purpose, which was done. In making this test it was discovered that the defect or defects in the head of the hydraulic cylinder constructed by plaintiff in error which were discovered at the first experiment still existed, and that some additional work was required to correct them. This was done, and on the 12th of November a working crew was
Before the accident the compress company had paid $1,000 on the contract, but this payment was made with the express understanding that the compress company waived no right against the foundry company by reason of any breach of its contract. This action was brought to recover this sum, together with damages sustained by the company, for the injury sustained by the plant from this explosion, and for rental value of the compress during its period of enforced idleness following the accident, upon the theory that the imperfect and 'unworkmanlike cylinder furnished by the plaintiff in error was the occasion of the accident and loss. The trial of the case resulted in a verdict which is in these words:
*194 “We, the jury, find for the plaintiff and assess their damage for injury and cost of repairing machinery and premises and replacing same, caused by breach of contract and cylinder explosion, $3,500; for money paid on contract, $1,000, with interest; for loss of rental value of compress caused by breach of contract and cylinder explosion, $3,000; total, $7,500.
“W. H. Montgomery, ForemanA
The first error assigned is that there is no material evidence to support the verdict of the jury. In considering this assignment, the wellLsettled rule is as announced in Citizens’ Rap. Transit Co. v. Seigrist, 96 Tenn., 120, that in order to impeach in this Court a verdict approved by the trial Judge, the complaining party must take as true the strongest legitimate view of the ■ testimony against him, and be prepared to show that it affords no support to the verdict. So that if the testimony in a given case, viewed from different points of observation, should suggest two theories, both of which may be naturally deduced from it, one of which, if adopted by the jury, makes reasonable their verdict and the other would leave it without material support, this Court will assume that the one which sustains the verdict was the one adopted by the triers of fact and maintain their finding.
Bearing in mind this rule and its corollary, we
The record shows that, after the casting was done, Garside, who was the manager of the Liv-ermore Foundry & Machine Oo., found on examination, what he supposed shallow sand holes in the head of the cylinder, which he says did not weaken it, but did give it rather an ugly and unfinished appearance, so he had placed over this head a solid brass plate, covering its entire surface, at an expense to his employer of $150. To fix this cap or plate over this head, some forty-five holes were bored into the upper rim of the cylinder, and the cap was fitted on with bolts carried into these holes. Mr. Garside says, “When the job was done it looked like a good piece of work, and it was shipped down there.” And again he says: “I did not think that the drilling there would weaken it to any extent that would be dangerous; that would be anywise dangerous.”
As has been stated, after the cylinder was placed, and the other machinery was adjusted to it, Leach, who was sent to Olarksdale as the rep-
While thus operating the machinery . in compressing cotton with a crew of the compress company, furnished to him for the purpose and working under his direction, according to Cutrer, a witness, “He would stop every little while and do a little work.” After the first test he had said to Campbell that he would make an effort, by the use of countersunk bolts, to stop the leaks, and if this failed his company would have to make a new casting, and during the progress of this .second test he said to Cutrer that he was afraid he might not be able to remedy it, and the Livermore Co. would have to cast a new cylinder, “but he would continue his work upon it and see if he could fix ’ it.”
The head of the hydraulic cylinder was exam
; Morrison examined this head and found it made of porous, slaggy metal and very imperfectly constructed, and Walsh, a practical- machinist and engineer of many years’ experience, who also examined the head, pronounced it “not a workmanlike' piece of work at all,” and that the drilling of the holes for the cap diminished the resisting force of the metal; and Martin, a witness for defendant below,' on cross-examination admitted that if it 'leaked as described by other witnesses he Would not regard it as a sound piece of work. All these parties agree that ■ never before had they known a brass cap on a cylinder head.
It is evident, without .further detail, that there Avas material testimony which, the jury accepting, warranted them in . believing • that this hydraulic cylinder, at that place where it was to receive the greatest pressure, was of- infirm material, poorly cast, and afterward diminished in strength by the
That the initial explosion was not in the steam cylinder we think the jury were ' authorized to conclude. The steam cylinder had worked for years satisfactorily, and up to the moment of the accident -gave no evidence of weakness. The explosion, so far as the record shows, did not dislodge it from its place, though its head was blown out, while this head, together with the hydraulic cylinder, -were driven forward a distance of several feet. TJpon examination. • by • ■ the expert witnesses, the metal in the former was pronounced perfect, while that in- the latter was found to be imperfect by the witnesses named.
In addition, we think the testimony in the case warrants, the ’contention of the plaintiff- below that if the initial. break had been in the steam . cylinder, its necessary effect would -have been to release - the piston from" the- ■ pressure., upon it from behind and. thus have .at once relieved. - the head of the hydraulic cylinder, from the strain upon it,- and- whatever other damage might have. been done to the, .latter, this would not have blo'-vpi •off.. On the other • hand,■ we can .well see that the jury might .naturally have . inferred -that the break first occurred in the head of the hydraulic ■cylinder, which, unable by. reason of inferior metal used- and imperfect construction, to - longer
It is true there was a suggestion by the defendant below, based upon the testimony of Leach, that. the accident was the result of carelessness on the part of the engineer in operating this machinery, resulting in the head of the piston being-driven against the head of the hydraulic cylinder,, thus weakening it until disintegration of the metal took place, followed by this explosion; but it is-evident this theory, as was the other, as to the inital point of explosion, propounded by the defendant below, was discarded by the jury and they accepted, rather, that of the plaintiff. It was for that tribunal to pass upon these respective theories, and, finding that the one adopted, by the jury was reasonably deducible from the evidence, we cannot interfere with the verdict.
Second, it is assigned for error that the trial Judge improperly admitted photographs of the-compress and the wrecked machinery, taken after the accident. These photographs were taken by the witness immediately after the accident, and served to give the jury, with the explanation of them by the witness, a more correct idea of the-
Third, it was not error on the part of the trial Judge in declining to permit defendant below to ask Campbell, one of the parties for whose use the suit is brought, on cross-examination, what he paid Mrs. Cutrer for her interest in this suit. There was no issue in the case which made this inquiry pertinent. When the husband of Mrs. Cut-rer was on the stand, within the freedom of cross-examination, he might have been asked as to this matter, but being a collateral matter, his answer would have concluded the investigation.
Fourth, the trial' Judge in his charge said to the jury if they found that the loss of the use of the . compress was due to the breach of contract of the defendant to furnish the machinery according to the contract, yet such loss could not be considered or allowed by them unless they also found that the defendant, at the .time the contract was made, had notice, either from it or otherwise, that such loss of use would ensue from nonperformance by it of its contract. He then adds:
“But if you find that it was in the contem*202 plation. of tbe parties to tbe contract, by tbe terms of tbe agreement or by direct notice, tbat in tbe event of default by tbe defendant to furnish suitable and proper machinery, tbe loss of tbe use of the compress would necessarily ensue; and if you find as a necessary result of tbe explosion — -if you find tbe explosion due to tbe ¡negligence of tbe defendant in furnishing- a defective cylinder — tbat the plaintiff was ■ deprived pf -.the 'use of tbe compress, plaintiff would be entitled -to recover tbe rental value of tbe compress, . • as shown by tbe evidence, during tbe period in which it was so deprived of its use.”
.. It is insisted tbat there is error in this last paragraph.. ■ Before considering this assignment, it iSj proper ■ to say, in reply to another objection of piainfiff in error, that tbe declaration averred a loss of rental use or value of. tbe compress for jibe r season of. 1897-8- resulting from • tbe breach pf, contract on tbe part of tbe foundry company, and, evidence was adduced- tending. . to show ■ ■ tbat sa|ter tbe accident it was impracticable to supply th,e compress with machinery in place of . tbat destroyed so .as to enable it ,to. do, any- work during ¡that season, and also what . the compress could ibave • done with good machinery, and its rental ¡value.
(,. In tbe instruction just quoted tbe trial- Judge was applying in brief term tbe rule laid down .by Alderson, Judge, in tbe now celebrated case
“Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be such as may fairly and reasonably be. considered, either arising naturally, i. e., according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties at the time they made the contract as the probable result of the breach of it. Now, if the special circumstances under which the contract was- actually made were communicated by the plaintiff- to the defendant, and thus known to both parties, the damages resulting from the breach • of ■ such a contract which ■ they - would reasonably contemplate would be the amount of injury which would ordinarily follow from a breach of contract, tinder these,, special ■ circumstances, -as- known and., com-nuinieated.’’-. -. •• . .- :-. _ .
Perhaps no rule - of practice , has provoked, more attention ..from • Coiirts and test-writers, • or . been more uniformly adopted, than this... It- has been with - singular, unanimity, recognized ras., resting on the sound, principle that a -party- suffering from a • breach of contract- on the part of another is entitled to recover full compensation, for the loss sustained thereby. It is true -he can recover only
Mr. Sedgwick, in his work on Damages, V ol. 1, Sec. 149, after an examination of the cases in which Hadley v. Baxendale has been reviewed and applied, in summing up the general result, says: “On the whole, it will be found that the general tendency of judicial opinion in the United States, as well as in England, is that* no new rule of damages has been introduced; that the plaintiff recovers such damages as are approximate and natural, and that, in ascertaining what are natural consequences, we must take into the account all the circumstances of the case, including all facts bearing on the question which were in the knowledge of both parties, even though these be such as would not necessarily, without such knowledge, enter into it.”
It would be a waste of labor and space to review the cases in which this .rule has been applied — in some with a liberality which we
But it is argued that, granting the authority of this rule, yet the present case was not a proper one for its application; that the information given plaintiff in error was not sufficient to put it on notice of the extraordinary damages it might incur from a breach of its contract. No case holds in order to put this rule in operation that the party invoking it must have said to the other party, at the moment of making the contract, he Avould claim these damages for a breach,
Yet, thus interpreting the rule, we think the testimony warranted the trial Judge in giving it in charge to the jury. On this point it was as-follows. Mr. Outrer, president of the company, said:
“Mr. Leach thoroughly understood that was the purpose in view, to fit the compress and have it ready in time to take up the cotton as it came in. Mr. Leach thoroughly understood, and we discussed together the necessity for having this work done in time to press cotton for the season of 1897, and- that if his company took the contract, they were to take it and complete the work in time for the crop of 1897.”
Mr. W. S. Campbell was asked: “What information, ■ if any, did you impart to the Livermore Poimdry & Machine Co1, of the necessity of having the work contracted for completed in time..
A. “Well, I of course impressed tbe fact upon bim that we wanted it completed in time to press cotton tbat would begin to come in to us, and, in fact, they fully understood tbe nature of tbe contract and tbe necessity for having it in shape by the time tbe season was open for compressing.”
But it is also said tbe trial • Judge was in error in saying to tbe jury upon tbe case wbicb this testimony tended to prove, tbat for its period of enforced idleness plaintiff below could recover tbe rental value of tbe premises. There was no error in this. Schuttle r. BraJeelin, 80 N. Y., 156; White v. Mosley, 25 Mass., 356; Keller v. State, 66 Md., 61; Chicago City R. R. v. Harrison, 81 Til., 218; Dixon Woods Co. v. Phillips Class Co.. 169 Pa. St., 167.
But it is said tbat tbe trial Judge, in tbe ■clause of bis charge set out above, erroneously left it to the jury to construe the written contract between these parties. An examination of tbe whole clause, we think, shows this criticism to be highly technical. There was no ambiguity in tbe written contract or controversy as to its execution or provisions. Tbe issue to which tbe attention of tbe jury was then being called was, assuming that the foundry was responsible for the explosion and tbe enforced idleness of the . com
Other errors are assigned, but as they are unimportant, they are disposed of orally.
All are overruled, and the judgment is affirmed.
Rehearing
OPINION ON PETITION TO REHEAR.
We have been earnestly asked to reconsider this case upon the suggestion that we have carried the doctrine of Hadley v. Baxen-dale further than is warranted by principle or authority, and in so doing have countenanced an application of it which will prove of grave import to manufacturers in the State.
In the case at bar, the compress was erected by its owner for compressing cotton for shipment to market. It was valueless for any other pur
In cases like tbe present it is certainly true tbe weight of authority is that for bis indemnity tbe. party disappointed of prompt delivery may recover of tbe delinquent manufacturer tbe rental value of bis property between tbe dates when tbe article. contracted for should have been delivered and tbe date of its actual delivery. Tbis much we understand to be conceded in tbe petition for rehearing, but tbe insistence is that tbe principle authorizing a recovery in such a case should not be applied where tbe enforced idleness is tbe result of an unexpected accident from latent defects, in the work supplied by tbe manufacturer, and covers a period of time so indefinite as a “season’s business.” It is said by counsel for petitioner that in the case first put tbe time of default is certain, and as tbe manufacturer can calculate with a degree of certainty what tbe claim against him will be in case of default, it may very well be said in tbe want of prompt delivery be contemplated, as tbe natural result of bis failure, a loss to tbe owner of- tbe rental value of
In the case of Abbott v. Gatch, 33 Md., 314 (S. C., 71 Am. Dec., 635), the Court held that the measure of damages for failure to erect a mill at the time stipulated in ' the contract is its fair rental value during the time the owner is thus kept from its use. In discussing the rule the Court made the following observation: “The inquiry here is, What standard of value. for the loss of time shall we apply? We cannot adopt any estimate of profits that Abbott might have realized from working the mill, because these were merely speculative, depending on the quantity of
Considering the uncertainty attending the milling business, the difficulty of defining a safe guide for profits, we are of the opinion that a fair rent is the most reasonable standard of the defendant’s loss by reason of plaintiff’s failure to complete the mill. This we take to be consistent Avith well established principles.”
This rule is also applied in a finely reasoned opinion delivered by Selden, J., for the Court in Griffin v. Colver, 16 N. Y., 489 (S. C., 69 Am. Dec., 718), where, after examining and distinguishing the cases, it Avas held that speculative profits as a basis for recovery would not be considered, but the measure of damages in a failure to furnish an engine by a stipulated time is the value of the use during the period of delay.
In Clifford v. Richardson, 18 Vt., 620, the defendant put machinery into the plaintiff’s mill in an unskillful manner, whereby he lost the use of his mill for a long space of time and Avas put to great expense in repairing the machinery. It Ava,s held that both the loss of the use of the mill and the expense of repairs were to be com
Goodloe v. Pryor, 9 La. Ann., 273, is another .authority to the same point. It is true this was a case arising under the civil code of Louisiana, which in many essential features differs from the common law. But in this regard that code adopts the rule for the measure of damages in cases like the present, almost in the words of Hadley v. Baxendale. After providing that “any person is responsible for the damages he occasions, not merely by his act, hut by his negligence, his imprudence or his want of skill,” it then provides that “when the object of the contract is anything but the payment of money,” and the party committing the breach is not guilty of fraud or bad ■faith, “he is liable only for such damages as were contemplated, or may reasonably be supposed to have entered into the contemplation of the parties at the time of the contract.” Under a contract to build and put in operation a sugar mill and steam engine on the defendant’s place,
As a matter of course, the condition precedent to such a recovery is that the manufacturer had’ notice, at the time he made the contract, of the-purpose his machine was to serve and of the-circumstances requiring a prompt execution of his-contract. "When these conditions do exist, then the-losses which result from his default are within the contemplation of the parties and cannot be-called accidental, but are incidental to and flow naturally from the breach.
This rule of law, together with its application to this ease, being established, the only question open is, Is there any material evidence to show the rental value of this compress for the season? We do find such evidence, which, even if so
Tt is also urged that we were in error in our ruling on the action of the trial Judge in declining to let the witness, Campbell, state what he paid Mrs. Cutrer for her interest in the present suit. Mrs. Cutrer was an important witness for the plaintiff below. Tt is said the purpose of the defendant below in undertaking to ' elicit information from Campbell as to this transfer from Cutrer and wife in the subject of the litigation was to affect Cutrer’s credit as a witness with the jury. We repeat as to this that when Cutrer was cross-examined he might have been asked as to this transfer, but, whatever his answer, it would have concluded the inquiry, because made with regard to a matter collateral to the issue. If, however, independent of the fact of transfer, Cutrer had, under the pressure of cross-examination, denied that he had a strong bias for the plaintiff in the suit, according, at any rate, to some authority (1 Wh. on Ev., Sec. 561) he might then have been contradicted by evidence of his own statements to the contrary or other implicatory acts. But we find no warrant for the course adopted in this case and still think the action of the trial Judge in this regard correct.
After a careful reconsideration of all the assignments of error, we are unable to discover any reason for a change in the conclusion originally announced by us, and the petition for rehearing is therefore dismissed.