GARCIA S. en C. v. Taggart Coal Co.

108 S.E. 72, 27 Ga. App. 204, 1921 Ga. App. LEXIS 783
CourtCourt of Appeals of Georgia
DecidedJune 17, 1921
Docket12181
StatusPublished
Cited by3 cases

This text of 108 S.E. 72 (GARCIA S. en C. v. Taggart Coal Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GARCIA S. en C. v. Taggart Coal Co., 108 S.E. 72, 27 Ga. App. 204, 1921 Ga. App. LEXIS 783 (Ga. Ct. App. 1921).

Opinion

Broyles, C. J.

(After stating the foregoing facts.) The plaintiff in error contends that under the ruling in the case of Hardwood Lumber Co. v. Adam, 134 Ga. 821 (68 S. E. 725, 32 L. R. A. (N. S.) 192), the petition set forth a cause of action, whereas the defendant in error contends that, under the ruling of this court in Twin City Lumber Co. v. Daniels, 22 Ga. App. 578 (96 S. E. 437), it did not. In each of these eases the decision is well considered and ably written, but, when carefully compared, the decisions are not at' all conflicting. The Hardwood Lumber Go. ease was a suit for the breach of a contract for the failure to deliver a specified quality of lumber, the plaintiffs alleging that the defendant had notice at the time the contract was made that the lumber in question was purchased for the purpose of resale, and that, by reason of the defendant’s breach of the contract, they were compelled to buy lumber to fill their subcontract at a higher price than that at which they had purchased it from the defendant, and sought to recover as damages the difference between the contract price of the lumber and the price they were forced to pay for it, plus the expense of transportation. They recovered the full.amount sued for, a motion for a new trial was overruled, and the defendant excepted, contending that the proper measure of damages was the difference between the contract price and the market price at the time and place fixed for delivery. The Supreme Court affirmed the judgment of the trial court, the 1st, 2d and 3d headnotes of the decision being as follows: The general rule is that in a suit for breach of contract for failure to deliver goods of a certain quality sold at a specified price, the measure of damages is the difference between the contract price and the market price at the time and place of delivery. This is not an inflexible rule in all cases, so as to exclude a recovery of actual damages sustained in cases to which such rule in its very nature is inapplicable; as, where there is no market at the time and place of delivery by which damages can be measured, and resort must be had to the nearest available market, with the cost of shipment to the place of de[210]*210livery added. If goods are bought for the purpose of resale, and so known to loth parties, and upon failure of the seller to deliver there is no market in which the buyer can readily oltain them, he may go into the market and purchase the best substitute obtainable, using reasonable care and diligence, and charging the seller with the difference between the contract price of the goods and the price of the goods substituted.” (Italics ours.) In discussing these principles, Justice Lumpkin, who delivered the opinion for the court, said: “ Damages are given as compensation for the injury done. ‘ Damages recoverable for a breach of contract are such as arise naturally and according to the usual course of things from such breach, and such as the parties contemplated when the contract was made, as the probable result of its breach.’ Civil Code, § 3799 [Civil Code of 1910, § 4395]. Any necessary expenses which one of two contracting parties incurs in complying with the contract may be recovered as damages.’ § 3800 [Civil Code of 1910, § ,4402]. One injured by a breach of contract is bound to lessen the damages as far as practicable by the rise of ordinary care and diligence. § 3802 [Civil Code of 1910, § 4398].” After stating the general rule already quoted’ from the headnotes, the opinion proceeds as follows: “It is evident that the general rule cannot be taken as a Procrustean one, subject to no exception ox modification. If so, it would exclude the possibility of recovering profits, where [which were] in contemplation of the parties at the time of the contract.” The court in that case quoted with approval and evidently based its decision upon Mr. Benjamin’s statement of the rule (2 Benjamin on Sales (6th Am. ed.), § 1327), which is'in part as follows: “If at the time of the sale the existence of a subcontract is made known to the seller, the buyer, on the seller’s default in delivering goods, has two courses open to him: (1) He may elect to fulfill his subcontract, and for that purpose go into the market and purchase the best substitute obtainable, charging the seller with the difference between the contract price of the goods and the price of the goods substituted. (2) He may elect to abandon his subcontract, and in that case he may recover as damages against the seller (a) his loss of profits on the subsale, and (5) any penalties he may be liable to pay for breach of his subcontract. . . If at the time of the sale the existence of a subcon[211]*211tract is not made known to the seller, a knowledge on his part that the buyer is purchasing with the general intention to resell, or notice of the subcontract given to him subsequent to the date of the contract, will not render him liable for the buyer’s loss of profits on such subcontract; the buyer may either procure the best substitute for the goods as before, and fulfill his subcontract, charging the seller with the difference in price, or abandon the subcontract and bring his action for damages, when the ordinary rule, it would seem, will apply. . . In every case the buyer, to entitle him to recover the full amount of damages, must have acted throughout as a reasonable man of business, and done all in his power to mitigate the loss.” (Italics ours.)

How stands the instant case in comparison with the Hardwood Lumber Go. case? The allegations of the present petition were sufficient to make a case for actual damages sustained by reason of the defendant’s breach of its contract, to wit: the difference between the contract price and the price of the coal purchased by the plaintiff in order to carry out the subcontract, plus the cost of freight, demurrage, and insurance. The petition alleges (and in determining whether a cause of action was set forth the allegations must be treated as true) that at the time the contract was made the defendant well knew that the plaintiff was engaged in the business of purchasing coal' for resale to sugar-mills in Cuba which required all of their supplies by the 1st of December, and that R. P. Lopez, who is referred to in the contract and who negotiated the purchase of the coal, notified the defendant, before the contract was reduced to writing, that the plaintiff was buying the coal for the specific purpose of resale. We are therefore constrained to hold that the petition set forth a cause of action under the exception to the general rule announced in the Hardwood Lumber Co. case, supra.

As to the case of Twin City Lumber Co. v. Daniels, supra, it is clearly distinguishable from the Hardwood Lumber Co. case and the case sub judice. In fact, Judge Bloodworth, who wrote the decision in that case for the court, not only recognized the binding force of the Hardwood Lumber Co. case, but took occasion to differentiate it. He said: The plaintiff- in error relies largely on the case of Hardwood Lumber Co. v. Adam, supra. That case is easily differentiated from the instant one. There [212]*212the seller had knowledge at the time of the execution of the contract, and at the time of each extension thereof, that the lumber was purchased for the purpose of resale. The petition in this case does not disclose such a condition.” (Italics ours.) The case of Sanders, Swann & Co. v. Allen, 124 Ga. 684 (52 S. E.

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Bluebook (online)
108 S.E. 72, 27 Ga. App. 204, 1921 Ga. App. LEXIS 783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-s-en-c-v-taggart-coal-co-gactapp-1921.