Clark Manufacturing Co. v. Western Union Telegraph Co.

152 N.C. 157
CourtSupreme Court of North Carolina
DecidedMarch 9, 1910
StatusPublished
Cited by3 cases

This text of 152 N.C. 157 (Clark Manufacturing Co. v. Western Union Telegraph Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark Manufacturing Co. v. Western Union Telegraph Co., 152 N.C. 157 (N.C. 1910).

Opinion

Beown, J.

From the findings of the referee it appears that about 10 o’clock A. M., 21 December, 1905, the Textile Commission Company filed in the office of the defendant, at New York, for transmission to the Clark Manufacturing Company, at Jonesboro, N. C., the following telegram:

New Yobk, December 21, 1905.
ClABK MANUFACTURING COMPANY,
Jonesboro, N. O.
Will you accept eight one-half all two-fifty drills on hand if we can get offer? Answer.
Textile Commission Company.

[159]*159Tbis telegram was delivered to tbe Clark Manufacturing Company at Jonesboro, between 2:40 and 3 o’clock P. M. on tbe same date. Prior to 3 :15 P. M. .tbe Clark Manufacturing Company filed witb tbe defendant at Jonesboro tbe following message, addressed to tbe Textile Commission Company at New York:

JoNesboro, N. C.,.December 21, 1905.
Textile CommissioN Compaky,
53 Worth Street, New York City.
Will accept eight balf for two-fifty drills if you can do no better. Would like to close Osanburgs'order before cotton advances.
David Clark:.

Tbis telegram was delivered to tbe Textile Commission Company after 5 o’clock P. M. on same day.

Upon a consideration of tbis case, and after most careful examination of tbe full briefs filed by counsel for botb parties, we are unanimously of tbe opinion tbat tbe learned judge of tbe Superior Court erred in overruling tbe defendant’s exception to tbe finding of tbe referee as to tbe quantum of damage.

Owing to tbe indefinite and uncertain character of tbe telegraphic correspondence, we think, upon tbe • great weight of authority, both text-writers and judicial precedents, tbat tbe plaintiff is entitled to recover only nominal damage, to wit, tbe charges paid for the telegram from tbe Textile Commission Company, in case it has paid them or incurred them.

It seems to ’be an almost univqrsal principle of tbe law of damage, imbedded in tbe jurisprudence of tbis country and Great Britain, and adopted in tbis State by unanimous decisions in many cases, tbat under any contract to transmit a message by telegraph, as under any other contract, tbe damages for a breach must be limited to those which may be fairly considered as ■ necessarily arising, according to tbe usual course of things, from tbe breach of the very contract sued upon, or which both parties must reasonably have ¶ understood and contemplated, when making tbe contract, as likely to result from its breach. Tbis principle is recognized in all the cases cited by tbe learned counsel for plaintiff and in hundreds of others in addition.

It is founded upon tbe rule laid down in tbe familiar English case of Hadley v. Baxendale, 9 Exch., 345, which has been quoted and approved by tbe Supreme Court of tbe United States and practically all tbe other judicial tribunals of tbis country. Tel. Co. v. Hall, 124 U. S., 444; Primrose v. Telegraph Co., 154 U. S., 883; Wood Mayne on Damages, sec. 13, and notes; Joyce on Damages, sec. 1403; Sutherland on Dam[160]*160ages, sec. SO. Tbe rule as stated by Joyce is that if tbe sender of a message does not notify tbe company of its importance or of special damages wbicb may result from a breach of tbe contract, and tbe message does not, from its language, convey to tbe company any suet knowledge, only such damages may be recovered as could bave been reasonably anticipated from tbe language of tbe message, and there can be no recovery for damages arising out of such special circumstances. Section 1403 and notes citing a great array of decided cases.

Tbe rule is applied by this Court in actions against telegraph companies for negligence in transmitting and delivering messages. Williams v. Telegraph Co., 136 N. C., 84, and cases cited. In bis well-considered opinion in this case Mr. Justice Walleer quotes at length from the Supreme Court of Massachusetts an extract showing tbe importance and inherent justice of this rule.

. Applying this established principle to tbe facts of this case, it is quite clear that tbe plaintiff is not entitled to recover tbe special damages claimed.

It is not contended that tbe defendant bad any notice of any special circumstances, or any other knowledge of tbe nature of the transaction, or of tbe consequences of delay, other than such as is afforded by tbe telegram itself.

It is apparent that tbe message gives no indication of a contract to sell or that one would be entered into immediately upon receipt of tbe answer, and tbe answer itself is not a definite acceptance of a proposition to sell, but makes it tbe duty of plaintiff’s factor to endeavor to get a better price.

Tbe telegram to plaintiff does not state that an offer bad been made, but plainly implies that up to that date no such offer bad been received. This is tbe construction that tbe sender intended should be placed upon it by tbe plaintiff; and tbe reply shows that it was tbe construction actually placed upon it by tbe sendee. In tbe examination of Meyer, general manager of the Textile- Company, who sent tbe telegram, and who is examined as a witness for plaintiff, be is 'asked why be sent a misleading telegram, concealing tbe fact that be bad such offer. Tbe answer of tbe witness has at least one merit, and that is-candor. He says: “For tbe reason that we knew that tbe offer wbicb we bad in band was full market price for tbe goods and the best price that it was possible to get, and we worded our telegram as we did for tbe reason that we did not want tbe Clark Manufacturing Company to know positively that we bad a definite offer, for, as is frequently tbe case with a mill, when they find you have a good offer, they expect you to get a little more, and [161]*161in tbe meantime they sit down between two chairs and we miss the sale.” And again in same deposition: “Q.: Do you mean that we shall understand you to say that the telegram to your principal was distinctly meant to conceal from the person the fact that you had an offer for the goods?”

“A.: In the sense that we did not want them to know that we had a firm bid price, yes, acting in the best interest of the mill.”

There is some attempt to show that it is the custom of commission houses to send such misleading telegrams to their principals, even when they have a definite bid, to prevent the factories from asking a higher price. But even if such evidence be considered pertinent, there is nothing to show that the defendant’s agents had knowledge of such an extraordinary custom obtaining in the cotton-goods trade. We can see no reason why, if this telegram was intended to mislead, and actually did deceive the plaintiff, engaged in the business and supposed to be conversant with its peculiar usages, it should not also mislead this defendant as to the real purpose for which it was sent.

Giving it the only construction the words are susceptible of, the same obstacle confronts this plaintiff as in Beatty v. Telegraph Co., 44 S. E.

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Related

McKenry v. Western Union Telegraph Co.
253 P. 333 (California Court of Appeal, 1927)
Western Union Telegraph Co. v. Huffstutler
188 S.W. 455 (Court of Appeals of Texas, 1916)

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Bluebook (online)
152 N.C. 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-manufacturing-co-v-western-union-telegraph-co-nc-1910.