Hagan v. Nashville Trust Co.

124 Tenn. 93
CourtTennessee Supreme Court
DecidedDecember 15, 1910
StatusPublished
Cited by13 cases

This text of 124 Tenn. 93 (Hagan v. Nashville Trust Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hagan v. Nashville Trust Co., 124 Tenn. 93 (Tenn. 1910).

Opinion

Me. Justice Geeen

delivered the opinion of the Oonrt.

The Belmont Land Company was the owner of a tract of land in the suburbs of Nashville, which it wished to develop and put on the market.

The Land Company entered into an arrangement with the Nashville Trust Company, by which the latter was to finance the improvement and marketing of this property.

The Nashville Trust Company was appointed the agent and attorney in fact for the Land Company, with full authority in the premises.

In order to sell this property to advantage, it was thought necessary to open up streets or avenues through it, to build sidewalks, and to erect houses and make other improvements.

The Nashville Trust Company, wishing an agent to superintend this work, as well as to push the sales of the property, entered into negotiations with A. M. Hagan, a real estate agent of the city of Nashville.

As a result of negotiations, on July 15,1901, the Trust Company and Mr. Hagan entered into a contract whereby the latter agreed, for a term of five years, to advertise said property at the expense of the owners, to solicit buyers and customers, to make sales of lands and houses, and to superintend, under the directions of the Trust Company, the construction of roads, houses, and other improvements that the said Trust Company might see proper to make on the said property.

[96]*96The contract then provided:

“For the services as agent, as aforesaid, the said party of the second part (Hagan) is to be paid two and one-half (2y2%) per cent, on all sales made of said property.”

At the beginning of negotiations between Mr. Joseph Thompson, the president of the Nashville Trust Company, and Mr. Hagan, it was proposed to Mr. Hagan by written contract that he receive for his services as agent a commission of 2% per cent, “on all sales made by him of said property;” but this was declined, and the contract made as above set out.

This contract, as has been stated, was dated July 15, 1901, and by its terms was to continue five years. The parties operated under this contract for about two years. Mr. Hagan did not make as many sales as the Land Company thought he should have done. The property was not at that time selling rapidly.

Some correspondence was had between Mr. Hagan and the officers of the Land Company relative to a change of the provisions of this contract. Nothing resulted from these negotiations, however.

So it turned out that, about two years from the date of the execution of the contract, the Land Company, being dissatisfied with Mr. Hagan’s services, discharged him.

Mr. Hagan insisted that he was ready at all times to . go forward with his part of the contract and to fulfill the obligations imposed on him thereby. This is not seriously controverted. The Land Company does not [97]*97impeach the willingness of Mr. Hagan, but it questions his efficiency.

After being discharged, Mr. Hagan brought suit against the Land Company for damages, on September 21, 1904. The contract between him and the company expired, according to its terms, on July 15, 1906. The hearing of this cause was delayed nearly two years after the time fixed for the expiration of the contract. The decree below was pronounced on April 27, 1908.

It is, therefore, seen that at the date of the trial before the chancellor, the time for the completion of the original contract had long since expired. The chancellor had an account taken of all sales made by the company within the five years, and allowed the complainant a recovery of 214, per cent, on such sales, less some credits by commission already paid him. The amount of the complainant’s decree was $1,945.44.

After Mr. Hagan was discharged, the Land Company put this property in the hands of nearly .all the real estate agents in Nashville, and the sales afterwards made by it were accomplished as the result of the combined efforts of all these agents.

The chancellor’s decree, therefore, allowed to the complainant a commission of 2y2 per cent, on the sales made as a result of the efforts of practically all the real estate men in Nashville.

This seems a hard decree, and we have given it much consideration.

We think, from an examination of the record, that the [98]*98Land Company breached its contract with Mr. Hagan, and that he is entitled to damages; but for the Land Company, in the language of its counsel, “it is further insisted that, even if he Avere discharged wrongfully, he can recover nothing from the defendant, by way of damages on account of the breach of the contract, more than merely nominal damages, because such damages as he claims are speculative, uncertain, and contingent, and are not expressly stipulated or provided for in the contract, and because the uncertainty as to the amount is not removed by the terms of the contract itself.” "

(1) We may say here that we agree almost entirely with appellant’s counsel in the statement of the law contained in his brief. He has set out clearly and forcibly the correct rules to be deduced from Tennessee decisions. The difficulty arises in the application of these principles to the facts of this case.

A much quoted epitome of the law on this subject is the expression of Mr. Justice Lamar, speaking for the supreme court of the United States, with which our o\Arn cases- are in accord. The language is as follows:

“The authorities, both in the United States and England, are agreed that, as a general rule, subject to certain Ávell established qualifications, the anticipated profits prevented by the breach of a contract are not recoverable in the way of damages for such breach; but in the application of this principle the same uniformity in the decisions does not exist. In some cases, of almost exact analogy in the facts, the adjudications of the courts in [99]*99the different States are directly opposite. The grounds' upon which the general rule of excluding profits, in estimating damages, rests are (1) that in the greater number of cases such expected profits are too dependent upon numerous uncertain and changing contingencies to constitute a definite and trustworthy measure of actual damages; (2) because such loss of profits is ordinarily remote, and not, as a matter of course, the direct and immediate result of the nonfulfillment of the contract; (3) and because most frequently the engagement to pay such loss of profits, in case of default in the performance, is not a part of the contract itself, nor can it be implied from its nature and terms. Sedgwick on Damages (7th Ed.), vol. 1, p. 108; The Schooner Lively, 1 Gall., 315, 325 [Fed. Cas. No. 8,403], per Mr. Justice Story; The Anna Maria, 2 Wheat., 327, 4 L. Ed., 252; The Amiable Nancy, 3 Wheat., 546, 4 L. Ed., 456; La Amistad de Rues 5 Wheat., 385, 5 L. Ed., 115; Smith v. Condry, 1 How., 28, 11 L. Ed., 35; Parish v. United States, 100 U. S., 500, 507, 25 L. Ed., 763, 766; Bulkley v. United States, 19 Wall., 37, 22 L. Ed., 62.

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Bluebook (online)
124 Tenn. 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hagan-v-nashville-trust-co-tenn-1910.