Johnson v. Atlantic Coast Line Railroad

184 N.C. 101
Supreme Court of North Carolina·Decided September 27, 1922·Published·Cited by 11 cases

Opinion

Walker, J.,

after stating tbe material- facts: We are of tbe opinion tbat tbe learned judge erred in tbe instructions to tbe jury which are above stated.

Tbe question as to tbe measure of damages, in cases of this kind, has been much discussed by this Court in several cases, and the law thoroughly settled.

Tbe Court said in Lee v. R. R., 136 N. C., 533, 535 : “It is immaterial whether we treat tbe cause of action as for a breach of contract or for a negligent omission to perform a public duty arising out of a contract of carriage. Tbe damages in either case are confined to such as were reasonably within tbe contemplation of tbe parties wben tbe contract was made by which tbe duty to tbe plaintiffs was assumed.” Whether this is strictly accurate where tbe action is one for tbe tort, in respect to tbe time wben tbe damages should be in contemplation of tbe parties, tbat is, whether at tbe time of tbe commission of tbe tort, or at tbe time tbe [104] contract of carriage was entered into, we will not now inquire, for it will suffice for our purpose in this case if we assume that it is the time when the tort was committed, and in the case where the action is in contract, at the time of making the contract, for we think that in either case the failure to employ the laborers at Norfolk, and the subsequent loss of plaintiff’s contract with the Rowland Lumber Company, should not have been considered in assessing the damages.

It is said in Penn v. Tel. Co., 159 N. C., at pp. 310 and 311: “In so far as mental anguish is concerned, except in cases where punitive damages are sought and allowable, and except as to the time when the relevant circumstances are to be noted and considered, the amount is very much the same whether the recovery is had in contract or in tort. In the one case those damages are allowed which were in the reasonable contemplation of the parties when the contract was made, and in the other the consequential losses resulting from the tort, and which were natural and probable at the time the tort was committed. Hale on Damages, p. 48. Speaking to these principles, and their practical application, in Scott and Jarnagan’s Haw of Telegraphs/'it is said: Hut when the contract between the parties does not show they had in contemplation this wider range in the estimate of damages (in contract), the measure of damages seems to be substantially the same in either kind of action. The true rule of estimating damages in actions ex con-tractu may be stated thus: The defendant is liable only for damages as may fairly and substantially be considered as arising naturally, i. e., according to the usual course of things, from the breach of the contract, or — and here is where the measure of damages takes a wider range — for whatever damages may fairly be supposed to have been within the contemplation of the parties. The rule in actions ex delicto is that the damages to be recovered must be the natural and proximate consequence of the act complained of. This is the rule when no malice, fraud, oppression, or evil intent intervenes. The damages which may be considered as arising naturally, according to the usual course of things, from the breach of the contract, are substantially the same as damages which are the natural and proximate consequences of the wrong complained of.” “There is one principal difference in the element of damages obtaining in breach of contract and consequential damages arising from a tort. In the one case damages are recovered, as a rule, on relevant facts in the reasonable contemplation of the parties at the time the contract is made, and in the other on the facts existent, or as they reasonably appeared to the parties at the time of the tort committed.” Peanut Co. v. R. R., 155 N. C., 152.

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Johnson v. Atlantic Coast Line Railroad, 184 N.C. 101 (N.C. 1922).

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