Memphis Casting Works, Inc. v. Bearings & Transmission Co.

243 S.W.2d 145, 35 Tenn. App. 164, 1951 Tenn. App. LEXIS 61
CourtCourt of Appeals of Tennessee
DecidedJuly 10, 1951
StatusPublished
Cited by6 cases

This text of 243 S.W.2d 145 (Memphis Casting Works, Inc. v. Bearings & Transmission Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Memphis Casting Works, Inc. v. Bearings & Transmission Co., 243 S.W.2d 145, 35 Tenn. App. 164, 1951 Tenn. App. LEXIS 61 (Tenn. Ct. App. 1951).

Opinion

SWEPSTON, J.

The declaration in this case was filed by Memphis Castings Works, Inc., to recover on account in the sum of $1137.01 for castings made for and sold to and accepted by defendant.

Defendant filed a cross-action to recover damages for breach of contract for the manufacture of castings which were to be used by cross-plaintiff in the manufacture or assembly of electric lawn mowers. It was alleged that by reason of such breach and refusal to carry out said contract cross-plaintiff was unable to assemble and deliver the mowers on contracts it had made in good faith with solvent purchasers, by reason of which said purchasers cancelled said contracts and caused it to lose substantial profits as well as other damages.

The issues were tried to a jury who rendered a verdict for $11,137.01 on the cross-action.

On cross-defendant’s motion for a new trial alleging passion, prejudice, etc., the court found the verdict excessive and suggested a remittitur of $1137.01, which was accepted by cross-plaintiff and it has not appealed from same.

Cross-defendant has appealed and assigned error.

There is no assignment that there is no evidence to support the verdict. Hence we are not called upon to review the evidence for such purpose.

[167]*167The 6th assignment relating to the preponderance of the evidence is not a proper one on appeal from a jury trial. In such a situation all issues of fact are settled by the verdict of the jury, whose sole and final province and function it is to determine the preponderance.

The 1st assignment is that the verdict is so excessive as to indicate passion, prejudice or unaccountable caprice; that there is no basis in law or fact to sustain same.

Confining the question at this point to the facts or evidence, we think there is no merit in the assignment.

The law will be treated under the 3rd assignment.

There was evidence in behalf of cross-plaintiff tending to show damages in a much larg’er amount than the verdict.

The evidence showed that it had made three contracts with solvent purchasers for 1400 electric lawn mowers, in the manufacture of which the above mentioned castings to be made by cross-defendant were to be used. On two of these contracts which were dealer contracts amounting to 900 mowers, the net profit would have been $32.50 each or $29,250; on the third contract which was a distributor contract, for 500 mowers the net profit would have been $20 each or $10,000, making a total on all three of $39,250. The difference was due to the higher price charged the dealer than that charged the distributor. The verdict therefore was well within the evidence on these three contracts alone and was not excessive.

The 2nd assignment is that it is patent that the jury mistakenly added the amount of the account of $1137.01, alleged to be due the plaintiff, to the amount of damages claimed by cross-plaintiff instead of deducting same as a set off as the court instructed the jury to do.

[168]*168This assignment is not completely phrased but counsel for defendant in error has assumed it to be probably a part of the 1st assignment and we think it was so intended.

It does seem obvious that the jury was g’uilty of caprice in respect to this identical figure. The trial court thought it excessive to that extent and he struck it off the amount of the total verdict. We think the jury were confused in that they added when they should have subtracted. The verdict is to this extent capricious. Hence we suggest a further remittitur of $1137.01, making the net judgment $10,000' less $1137.01, or $8862.99; otherwise this assignment will be sustained and a new trial ordered.

Assignments 3, in part, and 5 relating to refusal of special requests nos. 3, 6, and 7 raise the question of the proper measure of damages, that is, whether the general rule applies to effect that the measure of damages for the non-delivery of goods is the difference between the contract price and the market price, or whether under the proof in this case loss of anticipated profits from the sale of the mowers may be recovered, by reason of special circumstances.

The court charged the jury in part as follows:

“The Court instructs you Gentlemen of the Jury that while ordinarily the loss that a buyer sustains from the seller’s non-delivery of goods is the difference between the contract price and the market price, or price at which the same goods might be purchased elsewhere by the buyer; but that where there is no available market, or where the goods are being manufactured specially for the buyer according to his own specifications, or where the business of the buyer is seasonal and he has no opportunity to obtain the same goods from another seller within +ime to supply his contracts, then the buyer may [169]*169recover such damages as naturally arise according to the usual course of things from the seller’s breach; the buyer may recover such damages as may reasonably be supposed to have been contemplated by the parties at the time of making the contract as the probable result of its breach.
Profits shown to have been lost by the purchaser may be recovered where they were part of the contract; where an engagement to pay them can be found in the terms of the contract or implied from the circumstances in the light of which it was made; and where they are not in fact remote or speculative but are proved to a reasonable certainty.”

We think this was a correct charge and follows the • rules laid down and applied in Chisholm & Moore Mfg. Co. v. U. S. Canopy Co., 111 Tenn. 202, 77 S. W. 1062, where the facts were substantially analogous to the facts found by the jury in this case on evidence sustaining such findings.

The case briefly as made by the cross-plaintiff is as follows.

It had been a going concern for three years. In early 1949 it began experimenting with making this type of mower. During the summer months it procured the cross-defendant, a foundry, to make some castings to be component parts of the complete mower. In October it negotiated with the foundry a contract for 10,000 sets of these castings to be made as soon as the necessary patterns could be supplied by cross-plaintiff. It then made contracts with the dealers and distributor as stated above for the sale of 1400' mowers to be delivered in time for the 1950 market, which of course is seasonal.

It made arrangements for the necessary financing and made contracts for the procurement of the necessary parts [170]*170and materials to be used in tire mowers. It delivered the patterns to the cross-defendant abont December 21, 1949, but the latter delayed so long in getting into substantial production of the castings that cross-plaintiff could not supply its contract customers with mowers and the latter cancelled their contracts.

That finally February 21, 1950 cross-defendant refused to proceed with the contract for making castings. That same or similar castings were not available on the open market because they were of special design for use on this particular type of mower and they could not be obtained by cross-plaintiff on special order in time to enable it to fill orders for mowers. That cross-defendant knew at all times that cross-plaintiff intended to make mowers for sale and was taking orders that had to be filled in time for the 1950 seasonal market.

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Bluebook (online)
243 S.W.2d 145, 35 Tenn. App. 164, 1951 Tenn. App. LEXIS 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/memphis-casting-works-inc-v-bearings-transmission-co-tennctapp-1951.