American Express Co. v. Postal Telegraph-Cable Co.

151 N.W. 240, 97 Neb. 701, 1915 Neb. LEXIS 63
CourtNebraska Supreme Court
DecidedFebruary 12, 1915
DocketNo. 18,012
StatusPublished
Cited by3 cases

This text of 151 N.W. 240 (American Express Co. v. Postal Telegraph-Cable Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Express Co. v. Postal Telegraph-Cable Co., 151 N.W. 240, 97 Neb. 701, 1915 Neb. LEXIS 63 (Neb. 1915).

Opinion

Letton, J.

In 1905, Watson, Woods Brothers & Kelly Company, who were engaged in importing and selling horses for breeding' purposes at Lincoln, Nebraska, employed the American Express Company to transmit by telegraph to Joseph Watson, Queen’s Hotel, Antwerp, Belgium, 80,000 francs. In order to accomplish this, the agent of the express company delivered to the agent of the defendant at Lincoln the following message, addressed to the American Express Company at 65 Broadway, New York: “Button Pike. Eighty thousand francs. Joseph Watson, Queen’s Hotel, Antwerp, Belgium.” The words “Button Pike” were code words used to identify the sender of the message as the agent of the express company, and also constituted an order to transmit the sum named. The telegram reached Chicago, and was there received in proper form by an automatic receiving and recording instrument known as a “Morsograph.” In transmitting the message from Chicago, the letter “y” in the word “eighty” was omitted, and, as received by the express company in New York, it was a direction to pay eight thousand francs. The express company promptly cabled its agent at Antwerp to pay 8,000 francs to Mr. Watson. This message was delivered to him about 9 o’clock in the evening of November 2. Watson had been purchasing horses in Belgium and France, which were to be delivered to him at Antwerp on November 8, to be loaded upon the steamer “British Princess,” which was scheduled to leave Antwerp on November 4. As soon as Watson received the message he notified the express company’s agent that there was an error, and immediately cabled to his company at Lincoln to the same effect. A correction was made, and the remainder of the 80,000 francs was ordered paid to him. The message was received on November 5, after the steamer had sailed. As soon as Watson found that he could not get the money in time to pay for the 35 horses he had purchased, he, through his interpreters, notified the persons from whom he bought to [703]*703delay delivery. Previous to this, Watson, Woods Brothers & Kelly Company had incurred large expenses in advertising a public auction of these 35 horses and 19 other horses to be made at Lincoln, Nebraska, on December 5, and 'had incurred large expenses in preparing for the sale. Neither Watson nor his associates in this country were able to procure other transportation so that the horses might be delivered before the day of sale, although they used due diligence in that behalf. The horses were finally shipped by a later steamer. Watson, Woods Brothers & Kelly Company, afterwards began an action against the American Express Company to recover damages for the failure to transmit the money to Watson. Issues were made up, and as the case was about to come to trial the express company was informed by its counsel that, from his knowledge of the facts constituting the plaintiff’s case, if the case went to a jury, a verdict for a large sum would probably be rendered against them, and that a proposition to compromise for the sum of $3,000 had been made. He advised its acceptance. This was done, and a judgment for $3,025 was rendered against the express company in the United States circuit court for Nebraska. The Postal Telegraph-Cable Company was fully notified by the express company of the nature of that action, warned to defend, and was advised of the offer to compromise, but at all times denied any liability. This action is brought to recover the amount of the judgment paid by the express company, together with the costs and expenses of defending that suit.

The defense is: (1) That the message was sent as an unrepeated- message; under a condition in the contract which provided that the telegraph company should not be liable for mistakes in any such messages beyond the amount recéived for transmission; (2) that the error was made by an operator in the employment of the Postal Telegraph-Cable Company of Illinois, a different corporation from this defendant, and that there was a condition on the telegraph form which provided that the company should not be liable for mistakes made beyond its own lines; (3) that a rule of the express company required its agents to send [704]*704messages of this nature in code words; (4) that the message did not indicate, and the company wras ignorant of, its purpose, and such liability and loss as is claimed here was not within the contemplation of the parties; (5) that it accepted the message with the belief that the express ■company had, in accordance with one of its rules, procured an agreement from the sender of the money that it should not be liable for errors made by telegraph companies in sending messages of this nature.

At the conclusion of the testimony the district court directed the jury to return á verdict for plaintiff for the amount claimed. Defendant appeals.

The brief of appellant presents three points which are relied upon as requiring a reversal of the judgment. It is claimed that there was no legal proof of damages of whicli the mistake was the proximate cause; that, if it be so held, the amount was a question for the jury; and that the damages claimed are so remote and speculative that they could not be forseen or anticipated. It is argued that it is not shown that Watson had any legal contract with the sellers to deliver the horses in Antwerp on November 3. In the absence of evidence to the contrary, Mr. Watson’s testimony sufficed to show that he had bought the horses, and that they would have been delivered in Antwerp if he had not stopped delivery as soon as he ascertained that the money would not be received in time to pay for them on that date. The testimony as to other damages incurred was undisputed and would have sustained a much larger judgment. It is immaterial that the telegraph company was not aware of the purpose of the message other than that it directed the payment of money. By section 7406, Rev. St. 1913, a telegraph company is declared to be liable for the nondelivery of, and for all mistakes in transmitting, messages made by any person in its employ, and “any such telegraph company shall not be exempted from any such liability by reason of any clause, condition or agreement contained in its printed blanks.” This statute is considered and applied in Kemp v. Western Union Telegraph, Co., 28 Neb. 661, Western Union Telegraph, Co. v. Low[705]*705rey, 32 Neb. 732, Pacific Telegraph Co. v. Underwood, 37 Neb. 315, Western Union Telegraph Co. v. Kemp, 44 Neb. 194, and Western Union Telegraph Co. v. Beals, 56 Neb. 415, and it is held that a telegraph company, by virtue of tbe statute, is liable for all damages sustained by its failure to correctly transmit and deliver a message received by it, notwithstanding anything contained on its printed blanks. In a like action, under a somewhat similar statute in Wisconsin, in Fisher v. Western Union Telegraph Co., 119 Wis. 146, it was held that the familiar doctrine of Hadley v. Baxendale, 9 Exch. (Eng.) 341, which ordinarily controls the measure of damages in actions for breach of contract, does not apply. See, also, Barker v. Western Union Telegraph Co., 134 Wis. 147. Smith v. Western Union Telegraph Co., 80 Neb. 395, and Marriott v. Western Union Telegraph Co., 84 Neb. 443, were apparently actions for breach of contract, and the rule in Hadley v. Baxendale, supra, seems to have been applied. Here, however, the petition bases the right to recover, not upon the contract, but upon negligence and want of care on the part of the telegraph company, and the rule as to the measure of damages in actions for breach of contract does not apply.

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Cite This Page — Counsel Stack

Bluebook (online)
151 N.W. 240, 97 Neb. 701, 1915 Neb. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-express-co-v-postal-telegraph-cable-co-neb-1915.