Western Union Telegraph Co. v. Martin

9 Ill. App. 587
CourtAppellate Court of Illinois
DecidedJanuary 4, 1882
StatusPublished
Cited by4 cases

This text of 9 Ill. App. 587 (Western Union Telegraph Co. v. Martin) 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
Western Union Telegraph Co. v. Martin, 9 Ill. App. 587 (Ill. Ct. App. 1882).

Opinion

Wilsoh, P. J.

The principal question for determination is as to the measure of damages against a telegraph company for failing to transmit correctly a message in cipher, the same not being translated, nor its meaning otherwise disclosed to the company at or before the time of its being sent. The true rule of damages for the breach of a contract is not always easy of ascer_ tainment, especially as respects that class of damages denominated special or consequential, each case necessarily depending upon its own circumstances. In general, it may be said, that a party in default is required to make good the damages sustained by his breach of contract which were contemplated by, or may be reasonably supposed to have entered into the contemplation of the parties when making the contract. 1 Sedg. on Dam. 122.

In Hadley v. Baxendale, 9 Exch. 341, Baron Alderson states the rule as follows : “ Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of a breach of contract should be such as may fairly and reasonably, be considered either arising naturally, i. e., according to the usual course of things, from such 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.”

The general rule as thus stated has, we believe, been everywhere recognized and acted upon by the courts of this country. In New York the role is laid down in substantially the same language. Mr. Justice Selden, in Griffin v. Colver, 16th N. Y. 489, said “ The party injured is entitled to recover all his damages, including gains prevented as well as losses sustained, and this rule is subject to but two conditions; the damages must be such as may be fably supposed to have entered into the contemplation of the parties when the)r made the contract — • that is, they must be such as might naturally be expected to follow its violation; and they must be certain both in their nature and in respect to the cause from which they proceed.”

Our own Supreme Court, in Benton v. Fay, 64 Ill. 417, and in numerous other cases, have announced substantially the same rule. Greene v. Mann, 11 Ill. 644; Priestly v. N. I. & C. R. R. Co. 207; Strawn v. Coggswell, 28 Ill. 461. See, also, Goodkind v. Rogan, 8 Bradwell, 415.

It would seem to follow, as a corollary to the above, that to make a party to a contract responsible, in case of its non-fulfillment by him, for ulterior consequences, involving the payment of damages which do not flow directlv and naturally its breach, he should be informed with reasonable pre•'f the purpose for which the subject of the contract is ‘■he other party. That purpose should be brought fan rontemplation of the one who is to be charged. Sedg. v 'M. 83.

Applying ' fies to the c¡ nessage delivered to a telegraph °.ms ele n order to charge the company for m note rences, of which, from the face of the im ' advised, it is the duty of the sender to disen the purport and meaning of the communicativ or transmission. And such we understand to be u. ‘■vine both in England and this country.

In Sanders v. Stuart, 1 L. R. Com ne plaintiff delivered to the defendant a cip . o be transmitted to America, but which, throu< ■ efendant’s negligence was not forwarded. The plaint lit to recover for profits, which it was admitted they i ive made if the message had been duly sent. Lord 'e, in delivering the opinion of the court, said: “IIpc ,cts of this case we think the rule in Hadley v. Baxe pplies; and the damages recoverable- are nominal onl _ i not necessary to decide, and we do not give any opin the case might be if the message instead of being in h utterly unintelligible, had been in plain and intelligi s. It was conveyed in terms, which, so far as the defendant was concerned, were simple nonsense. For this reason, the second part of Mr. Baron Alderson’s rule clearly applies. No such damages as above mentioned, could be reasonably 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, for the simple reason that the defendant did not know what the contract was about, nor what, nor whether any damage would follow from the breach of it. And. for the same reason, viz, the total ignorance of the defendant as to the subject-matter of the contract (an ignorance known to, and indeed intentionally procured by the plaintiff), the first portion of the rule applies also, for there are no damages more than nominal which can be fairly and reasonably considered as arising naturally, and according to the usual course of things, from the breach of such a contract as this.”

This subject was fully considered by the Supreme Court of Wisconsin, in Candee v. The Western Union Telegraph Company, 34 Wis. 471. That was an action against the company for damages álleged to have been sustained by the plaintiff through the failure of the defendant to deliver a cipher message, the meaning of which was unknown to the company. The plaintiff was a banker and broker, doing business in Milwaukee, and engaged in buying and selling by telegraph in the New York Stock Exchange, gold, Government bonds and railway shares, through his brokers and agents in New York, in which business he had been engaged many years prior to the date of the message in question, sending and receiving daily messages in cipher. The message on which the suit was based was as follows, after the direction: “Arch, Barlier, Henry Augusta” which, translated, meant, “ Buy for my account, and answer by telegraph, 250 shares Chicago and Northwestern common stock.” Non-delivery of the message being admitted, the plaintiff recovered in the court below the difference between the price at which the stock could have been bought, had the message been duly delivered, and the price at which it was bought on the discovery of the failure to deliver. In delivering the opinion of the Supreme Court reversing the judgment, Chief Justice Dixon said:

“There appears to be no division of opinion among the courts that in contracts of this class the measure of damages to be recovered is the same as that which obtains in actions upon contracts in general, the rule for the assessment of which has ever been correctly expressed in the leading case of Hadley v. Baxendale. It cannot be assumed that any amount of damages or any pecuniary loss or injury will naturally ensue or be suffered, according to the usual course of things, from the failure to transmit a message, the meaning and import of which are wholly unknown to the operator. Ignorant of its real nature and importance, it cannot be said to have been in his contemplation at the time of making the contract, that any particular damage would be the probable result of a breach of the contract on his part. * * * These facts, however much they may tend to show negligence in the operator, fail to bring the case within the rule for the assessment of damages above stated. The operator cannot be said to have contemplated a rise in the value of stocks by which the plaintiff became a loser, as a probable result, or one of the probable results, of his failure to transmit the message.”

Similar views have been expressed in many other cases, to which we might refer. Thus, in Shields v. Washington Telegraph Co.

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9 Ill. App. 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-union-telegraph-co-v-martin-illappct-1882.