Dale Truck Line, Inc. v. R. & M. Well Servicing & Drilling Co.

286 S.W.2d 446, 1956 Tex. App. LEXIS 1986
CourtCourt of Appeals of Texas
DecidedJanuary 19, 1956
Docket12924
StatusPublished
Cited by9 cases

This text of 286 S.W.2d 446 (Dale Truck Line, Inc. v. R. & M. Well Servicing & Drilling Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dale Truck Line, Inc. v. R. & M. Well Servicing & Drilling Co., 286 S.W.2d 446, 1956 Tex. App. LEXIS 1986 (Tex. Ct. App. 1956).

Opinion

GANNON, Justice.

The parties will be referred to as in the trial court. This is an appeal by defendant, Dale Truck Line, Inc., from a money judgment against it in favor of plaintiff, R. & M. Well Servicing and Drilling Company, for general and special damages resulting from the negligent destruction in course of transportation by truck of an engine or power unit, part of the equipment constituting a drilling rig.

Defendant is a contract trucking concern engaged in the transportation for others of property, including oil well drilling rigs. Plaintiff is engaged in the business of contracting to drill oil wells. In carrying out its contracts it is necessary that plaintiff arrange .for its drilling. equipment to be hauled from one well location to another. Prior to the events giving rise to this suit defendant Truck Line had done considerable hauling of drilling rigs and equipment for plaintiff between various well locations and was apprised of the general nature of the business in which plaintiff was engaged.

On July 29, 1954, plaintiff had completed the drilling of a well for the Union Producing Company on its Whitehead lease near Fairbanks, northwest of Houston in Harris County, Texas. Plaintiff had previously contracted with Humble Oil & Refining Company to drill a well for it at a Barbour’s Hill location some distance removed from Fairbanks and to use in the drilling of the well at the Barbour’s Hill location the equipment with which it had drilled the Fairbanks location for Union Producing Company. Plaintiff arranged with defendant for the hauling of this drilling rig and equipment from the Fairbanks location to the Barbour’s Hill location. It was a part of the understanding that the shipment was to be delivered by defendant to the Barbour’s Hill location not later than 8:00 A.M. on the morning of July 30, 1954. In the course of transportation a certain L. R. O. U. Waukesha engine and power unit, an integral part of plaintiff’s drilling rig, was negligently damaged when the truck upon which it was loaded failed to clear a railroad overpass. All the rig and equipment were timely delivered except the Waukesha power unit which, after the damage to it, was supposed to have only junk value. However, it was later disposed of for $3,000. This amount, plus the contract price of the hauling, $3,030.38, or a total of $6,030.38, was tendered by plaintiff and allowed by the court as an offset against the gross general and special damages sued for by plaintiff and found in its favor by the court in the total sum of $14,030.38. Judgment was accordingly rendered in favor of plaintiff and against ■ defendant for *448 $8,000, but with interest only from date of judgment.

In arriving at the allowance of damages the court found there was no market value for the power unit involved, but concluded it had an intrinsic value as of the date of the damage of $13,081.21. The additional allowance of $949.17 represents special damages found by the court to have been suffered by plaintiff during a delay of several days before the Waukesha engine and power unit could be replaced and delivered to the Barbour’s Hill well location. The drilling rig was inoperable without the power unit.

Defendant attacks the judgment on several grounds. It is first complained there was no legal basis for the allowance of special damages because there was no proof of notice when the contract was made that special damages would ensue as a natural and probable result of the delay by reason of damage to the power unit during the time necessary to replace it at the well location. We overrule the point.

It is settled as contended by defendant that special damages are not recoverable for breach of contract in the absence of a showing that defendant had notice of special conditions or circumstances rendering such damages probable as a result of the breach; however, it does not seem to be the law that the giving of express notice is required. Such notice may be implied from circumstances and a course of dealing between the parties whereby defendant becomes familiar with facts which would indicate that the contract was based upon or made with reference to conditions which rendered such special damages the natural and probable result of a breach.

It is established in the evidence that defendant was familiar with the fact that plaintiff was an oil well drilling contractor. Here there can be little doubt that defendant realized when it made the contract to deliver the drilling rig in question from one drilling location to another and on a day and at an hour certain that it could anticipate that special damage of some kind would result from, delay in being able to put the drilling rig to use. It is not necessary that a defendant charged with liability for special damages should have detailed information with respect to the exact and precise damages which may be incurred. It is only necessary that he have notice of facts and circumstances rendering it reasonably probable that delay will result in some damage such as here from loss of use of the drilling rig in question, including, of course, expenses which may be incurred in paying of drilling crews required to stand by pending repairs or replacements of integral parts of the rig.

Though there is no proof of express notice, we are of the opinion that the facts and circumstances surrounding the parties clearly implied notice to defendant of the likelihood of special damage from delay.

We quote from the annotation at 166 A. L.R. 1034: “Generally it may be said that the requirement that, in order to recover special damages, the defendant must have had notice or knowledge of the special conditions or circumstances rendering such damages the natural and probable result of his breach of contract, is given a reasonable interpretation with reference to the subject to which such notice is applied. As applied in a case where recovery of special damages against a carrier for delay in the transportation or delivery of goods is sought it must appear that notice of the special facts or circumstances giving rise to the claim therefor were brought home to the carrier, usually at the time the contract was made * * *, in such way that the carrier must have known that the person with whom it contracted reasonably believed that it accepted the contract of carriage with knowledge of the contemplated use of the property and that delay in transportation or delivery might result in suffering of special damages.” In another part of the annotation it is stated that the nature of a shipment consisting of machinery has been held not necessarily to put the carrier on notice that special damages will ensue from delay. But the annotation proceeds, “However, the carrier’s knowl *449 edge of the nature of the shipment as machinery, machine parts, or tools, coupled with its knowledge of other facts or circumstances indicating necessity of prompt delivery, may be sufficient. The shipment of flues in an uncovered package to a tobacco grower was held, in Thompson v. American Ry. Express Co., 1920, 180 N.C. 42, 103 S.E. 898, to put the carrier on notice that special damages would probably result to the consignee’s tobacco if the flues were not delivered promptly where flues of this kind were used only for carrying tobacco, the shipment was made during the tobacco-curing season, failure to cure tobacco at the proper time would result in material loss, and all these facts were common knowledge in the area where the shipment was made.

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Bluebook (online)
286 S.W.2d 446, 1956 Tex. App. LEXIS 1986, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dale-truck-line-inc-v-r-m-well-servicing-drilling-co-texapp-1956.