Sinclair Refining Co. v. Hamilton & Dotson

178 S.E. 777, 164 Va. 203, 99 A.L.R. 929, 1935 Va. LEXIS 195
CourtSupreme Court of Virginia
DecidedMarch 14, 1935
StatusPublished
Cited by27 cases

This text of 178 S.E. 777 (Sinclair Refining Co. v. Hamilton & Dotson) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sinclair Refining Co. v. Hamilton & Dotson, 178 S.E. 777, 164 Va. 203, 99 A.L.R. 929, 1935 Va. LEXIS 195 (Va. 1935).

Opinion

Chinn, J.,

delivered the opinion of the court.

This is an action by notice of motion brought by the defendants in error (hereinafter generally referred to as plaintiffs) against Sinclair Refining Company (hereinafter generally referred to as defendant), to recover damages for alleged breach of contract. There was a verdict and judgment for the plaintiffs, which the defendant below has brought before this court for review.

By a written contract of lease, dated March 8, 1929, the plaintiffs rented from the Central Oil Company a certain garage situated in the town of Norton, Va., for a term of one year, at a rental of $100 per month. The said garage was used by the plaintiffs for a general automobile and service station business, including the sale of gasoline and automobile accessories. The building was located on land leased by Central Oil Company from the Norfolk and Western Railway Company, which lease contained a stipulation that the Central Oil Company should vacate the property on thirty days notice from the railway company, and said provision was incorporated in the lease from the Central Oil Company to the plaintiffs. The last named lease also contained a provision that the plaintiffs should have the right of renewal on the same terms, provided they gave the Central Oil Company notice of such purpose thirty days before the expiration thereof.

It appears from the evidence that in December, 1929, plaintiffs informed J. K. Cunningham, an officer of the Central Oil Company, that if said lessor would agree to erect an addition to the garage building suitable for an automobile Duco paint shop, they would be willing to renew the lease and pay $100 per month as theretofore, but if the company did not agree to erect the addition they would not be willing to pay more than $75 per month for the premises. It is testified by plaintiff, Dotson, that Cunningham agreed to [207]*207erect the paint shop, but before the new lease agreement to that effect could be consummated the Central Oil Company sold its entire business, including the garage occupied by the plaintiffs, to the Sinclair Befining Company; that on February 5, 1930, he informed certain representatives of said company that plaintiffs had a lease contract with the Central Oil Company for said garage which ran up to March 8,1930, and that the Central Oil Company had promised to erect an addition to the garage to be used as a Duco paint shop in connection with the business; that he was then told by said representatives that the defendant corporation would construct the addition, and it was thereupon agreed between the plaintiffs and defendant that the plaintiffs would pay $100 per month rent for the garage building only on condition that the Duco paint shop was erected, but if the same was not erected the plaintiffs were to pay only $75 per month.

It appears that although the defendant failed to construct the paint shop, the plaintiffs continued to occupy the premises with the expectation that this would be done, and paid rent at the rate of $100 per month until November 1, 1930, when the plaintiffs, having incorporated their business, effected a lease of the premises with the defendant company at the rate of $75 per month from that date.

The notice of motion alleges that by reason of the failure of the defendant to erect said Duco paint shop, the plaintiffs “lost and were deprived of certain profits and advantages which they would have otherwise acquired, and were otherwise caused great damage.” With said notice plaintiffs filed a bill of particulars setting forth in detail five items of damages relied upon for recovery, as follows:

(1) That relying on the defendant corporation’s promise to erect the paint shop, the plaintiffs had purchased certain tools and equipment which they would not have otherwise purchased, and as a result of the defendant’s breach of the contract the tools became useless to the plaintiffs and they were compelled to sell the same for twenty-five per centum of their cost value, at a loss of $341.62.

[208]*208(2) That in reliance on the defendant’s promise, the plaintiffs employed an expert Duco paint and repair man, one Carl Matusczyck, to operate and manage said shop, and guaranteed him earnings of not less than $225 per month, but the said Matusczyck was able to earn and have paid to him on the said contract of employment only $766.66 between March 8, 1930, and November 1, 1930, instead of $1,625 which he would have earned and had paid-to him if said paint shop had been erected, thereby causing the plaintiffs to stand bound and obligated to pay said Matusczyck the sum of $858.33.

(3) That upon the failure of the defendant corporation to erect the Duco paint shop, they found it necessary to erect temporary quarters in the garage building for the use of said expert, at an expense of $35.

(4) That from March to November 1, 1930, the plaintiffs paid the defendant $100 per month rental, thus, in view of the defendant’s continuing breach of the contract to erect the paint shop as alleged, paying an excess of $25 per month for eight months, or $200, which they are entitled to recover back because of said breach.

(5) That by reason of the alleged breach of contract the plaintiffs were damaged in the sum of $2,500 for the loss of good will, loss of trade, and the loss of anticipated profits from the Duco paint business which they would have realized through the operation of said shop if the same had been erected.

The total damages alleged in the bill of particulars amount to $3,934.94, and the jury rendered a verdict for the full amount claimed. The defendant moved the court to set aside the verdict for various reasons set forth in the record, whereupon the court entered an order holding that the item of $200 for excessive rent paid and the item of $341.62 for alleged loss on resale of tools could not be recovered, and put the plaintiffs upon their election to have the said verdict set aside and a new trial awarded, or abate the amount of recovery to $3,393.33. The plaintiffs elected to accept said [209]*209reduction, and the court thereupon entered judgment accordingly.

The petition contains ten assignments of error; and 124 exceptions to the rulings of the trial court on the admissibility of evidence, in giving instructions, and in refusing to set aside the verdict of the jury, are set forth in the record. In the view we take of the case, however, we deem it only necessary to discuss the question presented by the record of whether the damages awarded by the jury were sufficiently proved, and are recoverable in law under the facts and circumstances of the case. The general rule on the subject is thus stated in 8 R. C. L., section 25, page 455:

“In an English case decided in 1854 the rule was laid down that the damages recoverable for breach of contract are such as may fairly and reasonably be considered as arising naturally—that is, according to the usual course of things—from the breach of 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 the probable result of the breach of it,. and the pronouncement in that case has been generally accepted as an accurate statement of law on the subject. This is known as the rule in Hadley v. Baxendale,

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Bluebook (online)
178 S.E. 777, 164 Va. 203, 99 A.L.R. 929, 1935 Va. LEXIS 195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-refining-co-v-hamilton-dotson-va-1935.