Ramsey v. Tully

12 Ill. App. 463, 1882 Ill. App. LEXIS 209
CourtAppellate Court of Illinois
DecidedJanuary 3, 1883
StatusPublished
Cited by9 cases

This text of 12 Ill. App. 463 (Ramsey v. Tully) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ramsey v. Tully, 12 Ill. App. 463, 1882 Ill. App. LEXIS 209 (Ill. Ct. App. 1883).

Opinion

Wilson, J.

As the judgment of the court below must be reversed on other grounds, and the cause be remanded for a new trial, we omit the expression of any opinion as to the sufficiency of the evidence to support the allegation of the partnership of the defendants, the burden of proving which was, under the sworn plea of the defendants, cast upon the plaintiffs.

Two other questions are presented for determination: first, do the facts proven, taken in connection with the evidence, offered by the defendants but rejected by the court, show a proper case for the application of the doctrine of recoupment of the special damages claimed, and secondly, did the acceptance of the brick by the defendants after the time for their delivery had passed, constitute a waiver of such special dam-' ages as the defendants would have been entitled to recoup in the absence of a waiver?

The general rule of damages in the purchase and sale of personal property, where the seller fails to deliver, is the difference between the contract price and the market price at the time and place of delivery. This rale is based on the principle that fall indemnity is thereby offered to the buyer, as by going onto the market he may procure the commodity contracted for, charging the seller with the difference in price, if any.

But to this general rule there are various qualifications and exceptions, depending upon the facts of each particular case. Where a specific article is bought for a specific purpose, known to the vendor at the time of sale, and such article can not be had on the market, or has no ascertainable market value, the rule does not apply. In Sedgwick on the Measure of Damages, Yol. I, 558 and note, it is said: “A plaintiff can not recover for any consequences which would not follow, in the usual course of things, the seller’s failure to make delivery, but he can sometimes recover more than the difference between the contract and market price.”

, In Parsons v. Sutton, 66 1ST. Y., which was an action to recover for certain plate paper, which the seller had failed to deliver at the time agreed upon, the doctrine on this subject, as also the rule of pleading in such cases, is comprehensively stated thus: “The ordinary measure of damages is the difference between the contract and market price at' the time and place of delivery. And this is the measure to be applied in a case where the pleading is in the ordinary form, simply alleging the contract and breach, and claiming the damage. But this is not the only damages. * * * Where the buyer can go into the market and buy the article which the seller has failed to deliver, this is the only rule, as it offers full indemnity. Special damages are allowed when this rule will not furnish full indemnity. If there is no market for the artiple where it is to be delivered, and it can not be had there with the use of reasonable diligence, and the buyer suffers damage, because of the seller’s failure to deliver, which is the. proximate and natural consequence of such failure, such damage can be recovered.”

j The doctrine, as thus stated, is in accordance with the current of both the American and English decisions. See notes

to Cutter v. Porvell, 2 Smith’s Leading Cases, 18. Our own Supreme Court, in numerous cases, have recognized the same rule. Thus, in Benton v. Fay, 64 Ill. 417, which was a suit to recover damages for the non-delivery of a planing machine which the plaintiff had purchased of the defendant, the court below instructed the jury that the damages would be the difference between the contract price and the market value of the article at the time and place of delivery. Mr. Justice Lawrence said the rule given by the court is the correct rule in actions for the delivery of ordinary merchandise, which can at once be replaced in the market, but it is not applicable to a case where an article is bought for a specific purpose, known to the vendor at the time of sale. * * In such cases the ordinary rule of damages would furnish a very inadequate compensation for the damages actually suffered.”

In Ill. Cent. R. R. Co. v. Cobb, 64 Ill. 141, the court in discussing the measure of damages, say: “ The rule undoubtedly is that as between vendor and vendee, or shipper and carrier, that where the article is desired for a special purpose, that fact should be communicated to the vendor or carrier, if it is made the foundation of special damages against them, and if it is of a character likely to affect the action of the vendor or carrier.”

So, too, in Priestly v. N. I. & C. R. R. Co. 26 Ill. 205, which was an action against the railroad company for not delivering machinery transported by it in proper time; the court instructed that the only measure of damages was the market value of the machinery at the time it arrived, and the time when it should have arrived. The Supreme Court held the instruction clearly wrong, saying that when property sold is designed for a special purpose in a special business, and is not a common or ordinary object of sale in the market, the general rule has no application, but that adequate indemnity should be offered to the plaintiff for the loss he has sustained. And in regard to the extent of the recovery, Breese, J., said: 41 If the plaintiff had alleged in his declaration that he had made valuable contracts to be executed with the machinery, which would have yielded him profits, the jury, though they would not be bound to adopt any specific contract that may have been made, yet, if reasonable evidence is given that the amount of profit would have been made as claimed, the damages might be assessed accordingly.”

In Miller v. Mariners’ Church, 7 Greenl. 56, the Supreme Court of Maine, by way of. illustrating the rule, put a hypothetical ease very similar in its facts to the case now in hand, and conclude their opinion by saying: “ The party who is not chargeable with a violation of his contract should do the best he can in such cases, and for any unavoidable loss occasioned by the failure of the other party, he is justly entitled to a liberal and complete indemnity.”

' It is quite unnecessary to multiply the citation of cases. The principle which underlies them all is that where one of two contracting parties, not being himself in default, suffers a loss by the wrongful default of the other, he ought to receive full and just compensation therefor. His recovery, however, is to be limited to such damages, in the language of Baron Alderson in Hadley v. Baxendale, “ as may fairly and reasonably be considered either arising naturally, i. e., according to the usual course of things, from the contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties at the time they made the contract, as a probable result of the breach of it.” This definition excludes all such damages as are remote or merely speculative.

■ We think the kind of damages claimed in the defendant Leifh’s;s.pecial plea • are such as properly come within the limit of recovery. They are such as under the evidence given and offered might be the direct and natural result of appellee’s failure to deliver the brick and so must be deemed to have been in the contemplation of both parties at the time of making .the contract.

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Bluebook (online)
12 Ill. App. 463, 1882 Ill. App. LEXIS 209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramsey-v-tully-illappct-1883.