Savery v. Ingersoll

11 N.Y. St. Rep. 637
New York Supreme Court·Decided October 15, 1887·Published

Opinion

Barker, J.

—On a former trial of this action a non-suit was granted, which, on a motion made in this court, was-set aside and a new trial ordered, upon the ground that a case was made tending to prove a complete and valid contract and a non-performance thereof on the part of the defendant. Upon the trial now under review, the evidence-produced as to the making of a contract between .the parties, and the terms of the same, was substantially the same as that produced upon the previous trial. We then held, as stated in our opinion (reported in 2 N. Y. St. Rep., 218), that the evidence tended to prove that the parties considered and agreed upon everything essential to make a complete and binding contract, although a jury might find that their conversation was only preliminary, with a view of concluding an agreement at some future time; that upon the whole case, in the language of the opinion, “it became [639]*639& ojuestlon of fact for the jury to determine whether or not there was an assent of the minds of the parties so as to complete a valid contract, or whether that which passed between them was a loóse conversation not understood or intended as a contract.”

We have read the evidence as reproduced on the last trial, and reconsidered the argument of the counsel on the same question, and see no reason for changing our opinion.

The defendant makes an argument that the rule of damages adopted on the trial was erroneous. The jury were instructed that if they should find that the parties made and concluded an agreement, then the plaintiff was entitled to recover as a matter of law, at least nominal damages, as a breach of the contract; and this proposition was not disputed by the defendant. The evidence tended to prove that the defendant named a day on which he would deliver the lecture, and that the plaintiff assented to the appointment, and so notified the defendant, and that immediately thereafter the plaintiff incurred expense in preparing for the occasion by leasing a hall and advertising the lecture, etc.

The court charged the jury, as to the right of the plaintiff to damages for such expenses, as follows: “The plaintiff is entitled to recover his actual loss, his actual expenses, such expenses of time and money as he had put himself to, as he had made in good faith and were to be reasonably made in view of the execution of the contract which he had entered into, and it is for you to say what sum he did reasonably expend in money, time and labor in and about his preparations for the delivery of this lecture.” To this part ot the charge there was no exception. At the conclusion of the general charge, the lefendant’s counsel asked the court to instruct the jury: “That there is no evidence in this case upon which the jury can find anything but the actual damages proven.” This the court ref usd and the defendant excepted.

We are made to understand, from a perusal of the whole charge and the appellant’s argument on this appeal, that the purpose of making this request to charge, was to secure from the court instructions to the jury, that as a matter of law, the damages claimed by the plaintiff arising from the loss of the prospective profits, were too remote and uncertain, and cannot be legally allowed. Previous to making this request to charge, the court had expressly instructed the jury, that the plaintiff was not entitled to recover any- ' thing by way of damages, except those which they could see by the evidence he had sustained, and all uncertain and speculative damages, that were matters of guess and conjecture, should be rejected; and the court then gave the [640]*640further instructions: “But all such damages as you can clearly and fairly see the plaintiff has sustained, by the loss of such profits, as you clearly and fairly see he would probably have made, you may allow.” To the last part of these instructions the defendant took an exception.

These rulings present the only question, as to the rule of damages applicable to the case, which we have to consider on this appeal. The plaintiff by the terms of the contract, purchased from the defendant the profits to be realized by a delivery of the lecture on the terms stipulated by the agreement between the parties. The plaintiff had no other object or purpose in view on his part, than to secure to himself the profits which he might realize by a performance of the contract by the defendant. This the defendant must have understood when the contract was made. It was the only compensation which the plaintiff could have contemplated for the expense and trouble incident to the carrying out of the contract on his part.

The most direct and legitimate consequence which can follow on a breach of a contract of this character is the loss of the profits. Unless that loss can be made up to the. injured party, it is idle to say that any obligation was imposed upon the defendant by this contract.

The consideration which the defendant was to receive for the performance of the agreement on his part, was the sum of $250, which the plaintiff agreed to pay, and to which the plaintiff would have been entitled if he had visited Auburn at the time named by him, and offered to keep his promise. The law does not deny to the plaintiff the .right to recover from the defendant as damages, the prospective profits which the evidence established he had lost by reason of defendant’s breach of the contract. The rules as stated relative- to the measure of damages have been illustrated and applied in many cases analogous to the one at bar.

In Bagley v. Smith (10 N. Y., 489), the action was for damages arising from an unauthorized dissolution by the defendant of a copartnership, at a time and in a manner contrary to the terms of the copartnership agreement. The plaintiff was allowed, to recover as damages the profits be would have realized if the business had been continued. The court, in its opinion sustaining a verdict in the plaintiff’s favor, said: “Theloss of profits is one of the common grounds, and the amount of profits lost one of the common measures of the damages to be given upon a breach of contract.”

In that case, the sum which the party would have made, in other words, his prospective profits, from a performance of the contract by the defendant, was held to be a true measure of damages.

[641]*641The case of Gale v. Lecky (2 Stark., 96), is an English case, strikingly like the one before us, in the nature of the agreement involved and the difficulty of proving that loss of profits had been sustained by the plaintiff. In that case the defendant agreed, as author, to furnish a manuscript work to the plaintiffs, to be published by them at their expense and the profits to be equally divided.

The defendant failed to fulfill, and an action was brought to recover damages arising from the breach. The plaintiff gave evidence tending to show that he would probably have made a profit on the publication, and it was submitted to the jury to fix the amount of such profits and to assess the amount of the plaintiff’s damages on that basis, and they rendered a verdict for £50.

The rule is firmly established that a party to a contract may recover as damages the loss of the benefits and gains he would have realized from its performance. This measure <of damages has been applied to a great variety of agreements. Taylor v. Bradley, 39 N. Y., 129; Masterson v. Mayor, etc., 7 Hill, 61; Bagley v. Smith, 10 N. Y., 489; Wikman v. Wheeler & Wilson Mfg. Co.,

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Savery v. Ingersoll, 11 N.Y. St. Rep. 637 (N.Y. Super. Ct. 1887).

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