Harris Structural Steel Co. v. Chapman

162 Misc. 709, 295 N.Y.S. 443, 1937 N.Y. Misc. LEXIS 1667
CourtCity of New York Municipal Court
DecidedApril 30, 1937
StatusPublished
Cited by2 cases

This text of 162 Misc. 709 (Harris Structural Steel Co. v. Chapman) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris Structural Steel Co. v. Chapman, 162 Misc. 709, 295 N.Y.S. 443, 1937 N.Y. Misc. LEXIS 1667 (N.Y. Super. Ct. 1937).

Opinion

Pette, J.

This action was originally brought by the plaintiff to recover the sum of twenty-six dollars from the defendant as his alleged share of rent incurred for the hearing conducted by the arbitrators at the Bar Association Building. The defendant interposed an answer consisting of a general denial, several defenses, and a counterclaim for breach of contract in the sum of $1,000.

Upon the trial of this action before this court and a jury, the plaintiff withdrew its claim and the issues were submitted to the jury solely upon the matters of proof and damage as to the alleged counterclaim. During the course of the trial the plaintiff made the usual motion for a dismissal of the counterclaim upon which decision was reserved by this court. The jury returned a verdict in favor of the defendant and against the plaintiff for the sum of $500.

A motion was made by the plaintiff to set aside the aforesaid verdict as contrary to the law, contrary to the evidence, and against the weight of the evidence, and upon the grounds set forth in section 549 of the Civil Practice Act, except for insufficiency of damages. Decision was reserved upon the aforesaid motion.

This action represents an unusual set of facts for the Municipal Court. The facts, briefly, are as follows:

The plaintiff is engaged in the business of furnishing steel and in the construction of steel bridges, etc. The defendant is an engineer of many years standing. In the instant case the defendant appeared as his own counsel although his former attorney, Max Levy, appeared as a witness on his behalf during the course of the trial.

From the voluminous record, consisting of numerous exhibits and somewhat lengthy testimony, it appears that on or about February 5, 1936, the president of the plaintiff corporation and the defendant agreed upon a certain arbitration submission. The controversy submitted to the three arbitrators subsequently selected was in regard to professional services rendered to the plaintiff by the defendant. The submission to arbitration was actually made and dated on February 20, 1936, and was subsequently canceled and terminated pursuant to a stipulation dated November 23, 1936, signed by the defendant and his attorney. The answer interposed by the defendant herein, among other [711]*711things, contains a counterclaim for alleged damages in the sum of $7,500, which the defendant consented to be reduced in the sum of $1,000 in order to conform with the jurisdiction of this court. The counterclaim is based upon alleged damage caused by the plaintiff’s delay in the arbitration hearings. Upon the trial of the action great leeway was given to the defendant in the matter of his proof of said alleged damages, since he did not employ trial counsel, and this court wished to afford said defendant every opportunity to present his contentions to the jury.

The crux of the defendant’s alleged damage is set forth in his bill of particulars sworn to March 1, 1937, wherein it is stated, “ Loss of professional engineering business and time during the 225 day default of plaintiff, and resulting therefrom, over $6,350,” in addition to $1,000 legal fees incurred by the bringing of actions in the Supreme Court to compel plaintiff to proceed with the arbitration hearings.

The general rule that indemnity is to be awarded is subject to certain qualifications: (1) The damages must flow directly and naturally from the breach of the contract; (2) they must have been reasonably within the contemplation of the parties; (3) they must be certain in their nature. Another qualification arises out of the duty of a party to take reasonable precautions to minimize his damages.

It is frequently difficult to apply the rules of damages and to determine how far and when opinion evidence may be received to prove the amount of damages; and the difficulty is encountered in a marked degree in this case. One who violates his contract with another is liable for all the direct and proximate damages which result from the violation. The damages must be not merely speculative, possible and imaginary, but they must be reasonably certain, and such only as actually follow or may follow from the breach of the contract. They may be so remote as not to be directly traceable to the breach, or they may be the result of other intervening causes, and then they cannot be allowed. They are nearly always involved in some uncertainty and contingency; usually they are to be worked out in the future, and they can be determined only approximately upon reasonable conjectures and probable estimates. They may be so uncertain, contingent and imaginary as to be incapable of adequate proof, and then they cannot be recovered because they cannot be proved. But when it is certain that damages have been caused by a breach of contract, and the only uncertainty is as to their amount, there can rarely be good reason for refusing, on account of such uncertainty, any damages [712]*712whatever for the breach. A person violating his contract should not be permitted entirely to escape liability because the amount of the damages which he has caused is uncertain.

The general rule is that all damages resulting necessarily and immediately and directly from the breach are recoverable, and not those that are contingent and uncertain. (Wakeman v. Wheeler & Wilson Mfg. Co., 101 N. Y. 205, 212.)

The law also requires that the party subject to injury shall take all reasonable precautions to reduce or minimize the consequential damages, and on his failure to do so will not permit him to recover for damages which would have been prevented by such reasonable precautions. This rule is applied in case of a breach of contract. (Losei Realty Corp. v. City of New York, 254 N. Y. 41, modfg. 226 App. Div. 685; Elsman v. Glens Falls Indemnity Co., 146 Misc. 631; Milton v. Hudson River Steamboat Co., 37 N. Y. 210; Dillon v. Anderson, 43 id. 231; Baldwin v. United States Tel. Co., 45 id. 744, 753, revg. 1 Lans. 125; Parsons v. Sutton, 66 N. Y. 92, 98; Claflin v. Meyer, 75 id. 260, 267, revg. on other grounds, 43 N. Y. Super. Ct. 1; Horton v. Bauer, 129 N. Y. 148, 154; Rochester Lantern Co. v. Stiles & Parker Press Co., 135 id. 209, revg. 40 N. Y. St. Repr. 851; 16 N. Y. Supp. 781; Milage v. Woodward, 186 N. Y. 252, 257; Norske Ameriekalinje v. Sun P. & P. Assn., 226 id. 1, revg. 183 App. Div. 890.)

If by means of the precautions taken the damages are reduced, the limit of the recovery for compensatory damages is his actual damages plus the additional expenses so incurred.

The rule is laid down in the early case of Hamilton v. McPherson (28 N. Y. 72, 76), wherein the Court of Appeals held: “ The law, for wise reasons, imposes upon a party subjected to injury from a breach of contract, the active duly of making reasonable exertions to render the injury as light as possible. Public interest and sound morality accord with the law in demanding this; and if the injured party, through negligence or wilfulness, allows the damages to be unnecessarily enhanced, the increased loss justly falls upon him. (Miller v. Mariners’ Church, 7 Greenleaf, 51; Shannon v. Comstock, 21 Wend. 461; Heckscher v. McCrea, 24 id. 309; Clark v. Marsiglia, 1 Denio, 317; Spencer v. Halstead, Id. 606; Loker v. Damon,

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Bluebook (online)
162 Misc. 709, 295 N.Y.S. 443, 1937 N.Y. Misc. LEXIS 1667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-structural-steel-co-v-chapman-nynyccityct-1937.