Plaintiff instituted his action in trespass alleging negligence on the part of defendant, Commercial Credit Company. In his pleadings
It appears that the money transactions between plaintiff and Gold commenced sometime in August 1937 when DeRose loaned Gold $4,845, secured by a bailment lease covering eight automobiles, four new DeSoto and four new Plymouth cars. On October 21, 1937, this indebtedness was reduced to $3,306 and Gold requested plaintiff to enter into a new lease with its subject matter four automobiles therein referred to. Thereupon plaintiff and Gold entered into a lease in which plaintiff was the lessor and Gold the lessee. On January 10, 1938, the debt of Gold to DeRose was reduced to $2,279.50 and Gold again requested a change of automobiles involved. Plaintiff treated the automobiles as “security” for his loan. There were three automobiles in Gold’s garage, being the three automobiles involved in this action. DeRose, the plaintiff, after discussing the matter with Gold, called the Allentown office of defendant company and had a conversation with one Hanlon, the manager of that office. Plaintiff gave Hanlon the numbers of the cars and asked, “Can you tell me, please, if you have any liens against these automobiles?” Hanlon answered, “On 5621011 and 562-1017, there has been no transaction through our office, and we have no liens against these two automobiles; we also have no liens against no. 5608534, but I will call our Philadelphia office tomorrow and check up on that particular automobile”. Hanlon, plaintiff testified, further said: “You call me tomorrow around eleven o’clock, or a little bit after eleven o’clock.” Plaintiff then went to the office of his attorney, Robert S. Bachman, concerning the matter and Mr. Bachman called Hanlon by telephone. He, Bachman, directed his client, DeRose, to listen in on the conversation at an extension telephone. As to this conversation, plaintiff testified, “and Mr. Hanlon then told Mr. Bachman that on two cars he had no knowledge of .any liens against those two cars, and he also knew there was no lien against the third car, but he would call up the
There are comparatively few cases in point in this Commonwealth and the position of plaintiff is an effort to carry the established rules of law to a new front. Plaintiff’s action is not based on fraud and deceit, but upon negligence. Recovery in such cases has been carefully restricted. There has never been any doubt under the Pennsylvania decisions that one whose business it is to supply information is liable if he supplies it negligently, if he knows that the information he gives will be acted upon. Thus, a recorder of deeds has been held liable for a false certificate of search: Houseman v. Girard Mutual B. & L. Assn., 81 Pa. 256; telegraph companies have been held liable for erroneously transmitting business messages, if harm results: Bailey & Co. v. Western Union Tel. Co.,
“There were no contractual relations between the plaintiff and defendants, and, if there is any liability from them to him, it must arise out of some breach of duty, for there is no averment that they made the report with intent to deceive him. The averment in the statement of claim is that the defendants were careless and negligent in making their report; but the plaintiff was a stranger to them and to it, and, as no duty rested upon them to him, they cannot be guilty of any negligence of which he can complain: Schiffer v. Sauer Company et al., 238 Pa. 550. This was the correct view of the court below, and the judgment is accordingly affirmed.”
In Tredway v. Ingram, supra, defendant, a lumber dealer, executed a release of a mechanic’s lien upon certain houses for which he was supplying lumber. A mortgagee relied upon this release as to a property for which defendant was not supplying lumber. The mortgagee sued alleging a liability for negligence. The court directed a verdict for defendant and judgment thereon. The judg
“No duty of any kind has been shown to exist in the present case between plaintiff and defendant. There was no contractual obligation whatsoever. There is no statute in any way dealing with the subject. Defendant did not know plaintiff, knew nothing of plaintiff’s mortgage and had no relationship whatsoever with her. Defendant owed no duty to plaintiff, and in such case, under the principle set forth above, plaintiff cannot recover for the negligent act of defendant.”
A more recent case on the subject is Renn et al. v. Provident Trust Co. of Phila., 328 Pa. 481. There the Supreme Court, at page 483, said:
“We agree with the court below that these allegations are insufficient to impose a liability on defendant. Recovery for incorrect information negligently furnished has been carefully restricted, where, indeed, it is allowed at all (cf. Derry v. Peek, L. R. 14 A. C. 337). ‘Not every casual response, not every idle word, however damaging the result, gives rise to a cause of action. . . . Liability in such cases arises only where there is a duty, if one speaks at all, to give the correct information’: International Product Co. v. Erie R. R. Co., 244 N. Y. 331, 337. Accordingly we have held that when it is one’s business and function to supply information he is liable, if, knowing that action will be influenced, he supplies it negligently: Houseman v. Girard Mutual B. & L. Assn., 81 Pa. 256; McCaraher v. Commonwealth, 5 W. & S. 21; cf. Bailey & Co. v. Western Union Tel. Co., 227 Pa. 522; see Tentative Draft No. 13, Restatement of Torts, section. 628. If, on the other hand, the nature and extent of the transactions that will be regulated by the information is not known, no such liability exists: Landell v. Lybrand, 264 Pa. 406; Tredway v. Ingram, 102 Pa. Superior Ct. 459.
“Plaintiffs’ statement of claim is deficient in two particulars. It does not allege that defendant knew the object*306 of the request for the copy, or that it was part of its business to furnish it. . . . Plaintiffs have not made out a case for recovery under the established principles we have discussed; to hold the defendant liable on account of a mistake made by one of its subordinate officers performing only an act of courtesy, would be unfair and without legal justification.”
There can be no doubt that the judgment of the court is based upon the fact that defendant was not in the business of giving information. This rule is recognized in the A. L. I. Restatement of Torts (Tent. Draft no. 13,1936) §628. If it be established that the business of defendant is to supply information, then the next inquiry must be as to whether defendant is aware of the purpose and object of the inquiry.
Defendant is in the finance business and there is nothing in the testimony indicating that the supplying of information to others concerning its customers is part of that business. On the contrary it is fair to assume that the very nature of the business, like the business of a bank, would indicate keeping confidential the business of the customers of a company so engaged. The fact that information was given here by a subordinate officer or in other isolated instances or to other finance companies would not be sufficient to establish a course of business or a business custom. There certainly was no obligation on defendant company to call Mr. Bachman on the following day concerning the one automobile referred to in the testimony. Mr. Bachman, as attorney for plaintiff, chose to act without full information and his action in the premises cannot fasten negligence on the defendant.
For the reasons above stated, under the law and the . evidence in this case, the compulsory nonsuit was properly entered.
Decree of court
Now, June 17, 1940, plaintiff’s rule to show cause why the nonsuit entered in the above case should not be set aside is discharged.
