A. Engelhard & Sons Co. v. Western Union Telegraph Co.

197 S.W. 435, 176 Ky. 806, 1917 Ky. LEXIS 119
CourtCourt of Appeals of Kentucky
DecidedOctober 2, 1917
StatusPublished
Cited by2 cases

This text of 197 S.W. 435 (A. Engelhard & Sons Co. v. Western Union Telegraph Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. Engelhard & Sons Co. v. Western Union Telegraph Co., 197 S.W. 435, 176 Ky. 806, 1917 Ky. LEXIS 119 (Ky. Ct. App. 1917).

Opinion

Opinion op the Court by

Judge Carroll

Affirming.

[807]*807On August 10, 1914, A Engelhard <&i Sons Co., of Louisville, Ky., had in the possession of Arnold Dorr So Company, of New York, one thousand sacks of coffee, and on this date, at 2:30 p. m., Victor H. Engelhard, acting for them, delivered to the Western'Union Telegraph Co. at Louisville, Ky., the following telegram for transmission to Arnold Dorr So Company,at New York: “Close our September trade. Do the best you can.”

There is no dispute ábout the facts that this telegram was a direction to the New York brokers to sell the- thousand bags of coffee. It further appears that at the time the telegram was delivered to the, Louisville office the telegraph company’s wire to New York was not working on account of storms that had put it out of commission. And is also shown that Engelhard being anxious that the telegram should be sent promptly, and in order to make sure that there would be no delay' in its transmission, called up on the telephone the operator in charge of the Louisville office and inquired if the line to New York was clear, and on being advised that it was, told her to send the telegram immediately. It appears, however, that on account of the trouble with the wires the telegram was sent by the Louisville office at approximately 3:00 p. m. to the Indianapolis office, where it was relayed at 4:09 p. m. to New York and delivered to Arnold Dorr & Company at 5:50 p. m., New York time, or at 4:50 p. m., Louisville time. It was further shown that in the ordinary course .such- a telegram should have been sent from Louisville to New York in about eleven minutes; or, in other words, if it had been promptly dispatched, it would have reached New York, by -3:45 p. m., New York time, when:, in fact, it did not reach there until more than two hours later, or until after the New York coffee market had closed for that day.

On receipt of this,telegram, Arnold Dorr So Company sent a telegram to A. Engelhard So Sons Co. reading: “Your telegram reed, five fifty Sept, closed eight twenty will act on your order tomorrow unless we hear to the contrary.” This telegram was received by Engelhard So Sons Co. between eight- and nine on the morning of August 11th. On receiving this telegram Victor Engelhard, under the belief that his telegram had been duly received in New York, understood it to mean that pursuant to his order the New York firm had sold on August 10th 550 bags at $8.20 per hundred pounds and that the [808]*808balance would be sold on the next day, and thereupon telegraphed Arnold Dorr & Company to hold the balance of the coffee for further orders, and this telegram was received by the New York brokers on August llth at 10:20 a. m. They immediately wired appellant that they did not understand his telegram, and this message was received by Engelhard on August llth at 12:54 p. m. Upon its receipt Engelhard telegraphed that he. understood the first telegram to mean that they had sold 550 sacks and asked what they would advise him to do with the coffee, no part of which had .been sold at that time. In answer to this telegram the brokers advised that the coffee be not offered for sale at that time. Subsequently the coffee was disposed of on August 24th at $6.80 per hundred pounds, and this suit was brought by the Engelhard Company to recover the difference between what the coffee could have been sold for on August 10th if the telegram sent on that day directing its sale had been promptly transmitted and what it was sold for on August 24th, to-wit, $1,950.00.

The law and facts were submitted to the court and there was a judgment for the Engelhard Company for $260.00 and interest. Engelhard & Company not being satisfied with the amount of the judgment, prosecutes this appeal, insisting that on the facts there should have been a judgment in its favor for a considerably larger sum.

In separating his conclusions of law and fact the trial court found the facts to be: (1) That the telegraph company was guilty of negligence in the transmission and delivery of the message sent on August 10th directing the sale of the coffee; (2) that if the message to the ■ brokers had been promptly delivered,, the coffee could have been sold at $8.20 a hundred; (3) that if Engelhard misunderstood the message sent by Arnold Dorr & Company on August llth and received by him about 8:30 a. m. on that day, the telegraph company was not at fault and its rights were not to be prejudiced by the failure of the sender of the telegram to make its meaning clear, or by the mistake on the part of the receiver as to its meaning; (4) that if the message received by Engelhard from Arnold Dorr & Company on August llth about 8‘:30 a. m. had been understood by Engelhard he could have sent at once a telegram ordering a sale of the coffee on August llth, and it could have been sold on that day at $8.00 a hundred, or he could have [809]*809remained silent and the coffee would have been sold on August 11th under authority of the August 10th telegram; (5) that after August 11th, and for several days, there was no market for coffee, and on account of the conditions prevailing the coffee could not be and was not sold until August 24th.

On these facts the court found as a matter of law that the damage to which the Engelhard Company was entitled was the difference between the price at which the coffee could have been sold on August 10th, to-wit, $8.20 per hundred, if the message sent on that day ordering its sale had been promptly' delivered, and the price at which it could have been sold on August 11th, to-wit, $8.00 per hundred. It is admitted that this difference amounted to $260.00, for which judgment was rendered.

As to the law of the case, the trial court correctly ruled that the telegraph company was guilty of negligence in the transmission of the message of August 10th directing Arnold Dorr & Company to sell on that day the coffee. If a telegraph company’s line is out of order or not working, and knowing this fact, -it accepts a message for transmission over its line without notifying the sender of the condition of the line, it assumes responsibility for loss occasioned by the delay. If the wires are out of order or not working, and for this reason it cannot send with its usual promptness a message, it must, if it desires to be excused for its failure to promptly transmit it, notify the sender, and if it fails to notify him, or informs him that his message will be promptly sent, it will be responsible for its failure to do so, although such failure may be due to causes beyond its control. Swan v. Western Union Telegraph Co., 129 Fed. 318, 67 L. R. A. 153; Postal Telegraph Cable Co. v. Nichols, 159 Fed. 643, 16 L. R. A. (N. S.) 870.

With this question of law settled, the remaining question is the measure of damage to which the Engelhard Company was entitled, and this turns' purely on questions of fact. The court, as we have stated, found that if the telegram of August 10th directing a sale of the coffee-had been promptly transmitted and délivered, the coffee could have been sold on that day at $8.20 per hundred, while counsel for Engelhard & Company insist that it could have been sold on that day at from $8.30 to $8.40, and so the trial court committed error in fixing the selling price on that day at $8.20.

[810]*810Dorr testifies, in substance, that on the morning of August 10th there was trading in coffee around $8.50 to $8.55, and that it sold down to $8.30; that as late as five o’clock p. m.

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Bluebook (online)
197 S.W. 435, 176 Ky. 806, 1917 Ky. LEXIS 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-engelhard-sons-co-v-western-union-telegraph-co-kyctapp-1917.