Goodsell v. Western Union Telegraph Co.

13 N.Y. St. Rep. 278
CourtNew York Supreme Court
DecidedJanuary 3, 1888
StatusPublished

This text of 13 N.Y. St. Rep. 278 (Goodsell v. Western Union Telegraph Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goodsell v. Western Union Telegraph Co., 13 N.Y. St. Rep. 278 (N.Y. Super. Ct. 1888).

Opinion

Ingraham, J.

This action was originally brought by the plaintiff to recover for two causes of action. The first cause of action being to recover the amount due under the contract between the plaintiff and the Atlantic and Pacific Telegraph Company, and which the defendant undertook and assumed to perform. And the second cause of action being for the damages sustained by the plaintiff for the breach of the contract by the defendant in having refused and neglected to carry out the contract on the 11th day of March, 1882. and demanded judgment against the defendant for the sum of $32,000, with interest from April, 1882, and the sum of $650,000 damages for the breach of contract.

The action was tried before a referee who found that the contract was a valid and subsisting contract between the plaintiff and the defendant; that from the 3d day of February, 1881, to and including the 22d day of June, 1882, the plaintiff fully performed and fulfilled on his part all the terms and conditions of said contract, but that defendant did not perform and fulfill all the conditions and terms of said contract on its part to be performed and fulfilled, specifying particularly the instances in which the defendant has failed to fulfill its obligation.

The referee then found as follows:

“Eleventh. That defendant collected for and on account of the plaintiff from the several newspapers and newspaper proprietors who received and were served with such telegraphic news reports, the sums and prices that had been agreed to be paid by said newspaper reporters and proprietors to plaintiff for said news reports, from the 3d day of February, 1881, to the 22d day of June, 1882, that the collections so made by the defendant for said plaintiff under the said contract amount to the aggregate sum of $157,800.

Twelfth. That the telegraph service rendered by the defendant to the plaintiff, from the 3d day of February, 1881, to the 22d day of June, 1882, under terms and conditions of said contract, amount to the sum of $78,500 for what is named as the regular service in the third clause of said contract and the sum of $16,772.58, for additional or extra service in excess of 6,750 words per day as provided in the fourth clause in said contract. The whole of said service under said contract during said time, amounts to the aggregate sum of $95,272.58, which [280]*280the defendant was authorized under- said contract to retain and from said collections to account to and pay the balance to the plaintiff, and the amount that the defendant should have to account for and pay to the plaintiff, during said time was the sum of $62,627.42, of which and on account-of which, the defendant paid the aggregate sum of $45,750, leaving a balance due and owing to the plaintiff from the defendant the sum of $16,777.42.

The refereee further found that by reason of the failure,, nejglect and refusal of defendant to fulfill and perform the terms and conditions of the contract on its part and because of the breach and breaches of the contract by the defendant therein before stated, the plaintiff suffered great loss and damages by reason of the failure, neglect and refusal of the defendant to fulfill and perform the terms and conditions of the contract on its part to be fulfilled and performed, to the amount of $220,306.

And as a conclusion of law the referee found that the contract was_ and is a valid and legal contract by and between'the said plaintiff and the Atlantic and Pacific Telegraph Company, and that plaintiff was entitled to judgment against the defendant for the sum of $16,777.42, with interest from June 1, 1882, on account of the balance due him from the collections made by defendant for plaintiff, over and above the amount which the defendant by said! contract was entitled to retain out of said collections, as compensation for the said telegraph service under said contract, and, also, for the sum of $220,306, as damages for the several breaches of the said contract set forth in the complaint, with costs.

From the judgment entered on this report of the referee the defendant appealed, and on that appeal it was ordered by the general term that the judgment as to the first cause of action, set forth in the complaint, for $16,777.42, be affirmed, and that the judgment as to the second cause of action for $220,306, be reversed and a new trial ordered in that cause of action; thus in effect severing the action.

The new trial ordered for the second cause of action was had before a jury and on that trial a verdict was rendered in favor of the plaintiff for the sum of $250,000, on which verdict judgment was entered and from that judgment the defendant appeals.

The judgment of the general term on the former, affirming the judgment entered on .the first cause of action is an adjudication of the execution, existence and validity of the contract sued upon; the right of the plaintiff to recover in his own individual name and that the defendant was bound to perform the said contract, and whatever my individual [281]*281opinion may be on those questions, I think they are res adjudicada on the trial of the second cause of action.

The first cause of action having been upon the contract to recover the amount unpaid by the defendant to the plaintiff under its terms, is not an adjudication that there was a breach of the contract by the defendant, and the first question presented is whether or not on the testimony there was evidence to justify the jury that there had been a breach by the defendant of the whole contract which would relieve the plaintiff from the duty of proving a compliance with the contract on his part and sustain a verdict in his favor for the damages sustained by reason of such breach.

At the end of all the testimony in the case the defendant moved for a nonsuit upon several grounds, one of which was that the plaintiff has not proved any breach of the contract as alleged in the complaint, from which the plaintiff has been shown by the evidence to have suffered any damage whatever, and that the words or conduct relied upon as a breach of the contract by anticipation does not by itself amount to a breach of the contract, and the court denied that motion on the ground that it would not be justified on the evidence in the case in holding as a matter of law that there had been no breach, to which denial the defendant’s counsel excepted.

The evidence relied upon by the plaintiff to prove a breach of the contract consists of three letters; the first dated March 11, 1882, the second March 24, 1882, the third May 10, 1882. The first of these letters is signed by Marvin Green, president of the defendant, and after stating the execution of the contract and the action of the parties, it says: “I am therefore directed by the sub-committee to whom this subject was referred, to say to you that from and after this date you will be charged for the transmission of your press reports at the same rate as that charged for other combination of press reports in the respective territories in which said reports are handled under existing agreements, and that unless such rate is paid or secured to lie paid to this company the service will be discontinued. ”

No reply was made to this letter, but plaintiff continued, to furnish press reports to the defendant for transmission, which reports were duly transmitted as required by the said contracts by the defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
13 N.Y. St. Rep. 278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goodsell-v-western-union-telegraph-co-nysupct-1888.