Missouri Furnace Co. v. Cochran

8 F. 463, 1881 U.S. App. LEXIS 2369
CourtU.S. Circuit Court for the District of Western Pennsylvania
DecidedAugust 26, 1881
StatusPublished
Cited by6 cases

This text of 8 F. 463 (Missouri Furnace Co. v. Cochran) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Western Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Missouri Furnace Co. v. Cochran, 8 F. 463, 1881 U.S. App. LEXIS 2369 (circtwdpa 1881).

Opinion

Acheson, 1). J.

This suit, brought February 26, 1880, was to recover damages for the breach by John M. Cochran of a contract for the sale and delivery by him to tho plaintiff of 36,621 tons of standard Oonnellsville coke, at the price of $1.20 per ton, (subject to an [464]*464advance'in.case of. á rise in wages,) deliverable on cars at ms works, at'the rate, of nine cars of 13 tons each per day on each working day during the year 1880. After 8,765 tons were delivered, Cochran, on ¡¡February -13, 1880, notified the plaintiff that he had rescinded the contract, and thereafter delivered no coke. After Cochran’s refusal further to deliver coke, the plaintiff made a substantially similar contract with one Hutchinson for the delivery d,uring the balance of the year of 29; 587 tons of Connellsville coke at four dollars per ton, which was the market rate for such a forward contract, and rather below the market price for present deliveries on February 27, 1880, the date' of the Hutchinson contract. The plaintiff claimed to recover the difference between the price stipulated in the contract sued on, and the price which the plaintiff agreed to pay Hutchinson under the contract of February 27, 1880. But the court refused to adopt this standard of damages, and instructed the jury that the plaintiff was “entitled to recover, upon the coke which John M. Cochran contracted to deliver and refused to deliver to the plaintiff, the sum of the difference between the contract price — that is, the price Cochran ¡was to receive — and the market price of standard Connellsville coke, at the place of delivery, at the several dates when the several deliveries, should have been made under the contract.” Under this instruction ‘there was a verdict for the plaintiff for $22,171.49.' As the plaintiff had in its hands $1,521.10 coming to the defendant for coke delivered, the damages as found by the jury amounted to the sum of $23,692.50. .

The plaintiff moved the court for a new trial; and, in support of the motion, an earnest 'and' certainly very able argument has been made by plaintiff’s counsel. But we are not convinced that the instruction complained of was erroneous.

> Undoubtedly it is well settled, as a general rule, that when contracts for the sale of chattels are broken by the vendor failing to deliver, the measure of damages is the difference between the contract price and the market value of the article at the time it should be delivered. Sedgwick on the Measure of Damages, (7th Ed.) 552. In Shepherd v. Hampton, 3 Wheat. 200, this rule was distinctly.sanctioned.' Chief Justice Marshall there says: “The unanimous opinion of the court is that the price of the article at the time it was to ■be delivered'is the. measure of damages.” Id. 204. Nor does the case of Hopkins v. Lee, 6. Wheat. 118, promulgate a different doctrine; for; clearly,' “the time of the breach” there spoken of. is the time When delivery should have been made under the contract.

[465]*465It is said in Sedgwick on the Measure of Damages, (7th Ed.) 558, note h: “Where delivery is required to be made by instalments, the measure of damages will be estimated by the value at the time each delivery should have been made.” In accordance with this principle the damages were assessed in Brown v. Muller, Law Rep. 7 Ex. 319, and Roper v. Johnson, Law Rep. 8 C. P. 167, which were suits by vendee against vendor for damages for failure to deliver iron, in the one case, and coal, in the other, deliverable in monthly instalments. In one of these cases suit was brought after the contract period had expired; in the other case before its expiration; but in both cases the vendor had given notice to the plaintiff that he did not intend to fulfil his contract. To the argument, there urged on behalf of the vendor, that upon receiving such notice it is the duty of the vendee to go into the market and provide himself with a new forward contract, Kelly, C. B., in Brown v. Muller, said:

“ Ho is not bound to enter into such a contract, which might be to his advantage or detriment, according as the market might fall or rise. If it fell, the defendant might fairly say that the plaintiff had no right to enter into a speculative contract, and insist that he was not called upon to pay a greater difference than would have existed had the plaintiff held Ms hand.”

Where the breach is on the part of the vendee, it seems to be settled law that he cannot have the damages assessed as of the date of his notice that he will not accept the goods. Sedgwick on Measure of Damages, 601. The date at which the contract is considered to have been broken by the buyer is that at which the goods were to have been delivered, not that at which he may give notice that he intends to break the contract. Benjamin on Sales, § 759. And, indeed, it is a most rational doctrine that a party, whether vendor or vendee, may stand upon his contract and disregard a notice from the other party of any intended repudiation of it. If this were not so, the party desiring to be off from a contract might choose his own time to discharge himself from further liability.

The law as to the effect of such notice is clearly and most satisfactorily stated by Cockburn, C. J., in Frost v. Knight, Law Rep. 7 Ex. 112.

“ The promisee, if he pleases, may treat the notice of intention as inoperative, and wait the time when the contract is to be executed, and then hold the other party responsible for all the consequences of non-performance; but in that case he keeps the contract alive for the benefit of the other party as well as his own; he remains subject to all his own obligations and liabilities under it, and enables the other party not only to complete the contract, if so [466]*466advised, notwithstanding his previous repudiation of it, hut also to take advantage of any supervening circumstances which would justify him to decline to complete it. On the other hand, the promisee may, if he thinks proper, treat the repudiation of the other party as a wrongful putting an end to the contract, and may at once bring his action as on a breach of it; and in such action he will be entitled to such damages as would have arisen from the nonperformance of the contract at the appointed time, subject, however, to abatement in respect of any circumstances which may have afforded him the means of mitigating his loss.”

We do not think the force of the English cases referred to has been at all weakened by that of the Dunkirk Colliery v. Lever, 41 Law Times Rep. (U. S.) 632, so much relied on by the plaintiff’s counsel. Nor are the facts of that case similar to those of the case in hand. There the controlling fact was that at the time the vendee definitively refused to accept, there was no regular market for cannel coal, and the vendors resold as soon as they found a purchaser according to the ordinary course of their business, and without unreasonable delay. Therefore, it was held that the plaintiffs were entitled to the full amount of the difference between the contract price and that which they obtained.

Our attention has been called to Masterton v. Brooklyn, 7 Hill, 61. Undoubtedly this is a leading case in this branch of the law, and especially upon the subject of the profits allowable as damages, and the principles upon which they are to be ascertained.

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Bluebook (online)
8 F. 463, 1881 U.S. App. LEXIS 2369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/missouri-furnace-co-v-cochran-circtwdpa-1881.