Security Stove & Manufacturing Co. v. American Railways Express Co.

1932

Court: Court of Appeals of Missouri

Facts: Plaintiff made a furnace that could switch from gas to oil fuel, and back. Plaintiff wanted to exhibit the furnace at a trade show, and made arrangements to have the system boxed and shipped there. The carrier (defendant) was clearly informed of the need for delivery, and the service requested was in keeping with the ordinary timeframes and fees, etc. One of the boxes did not arrive before the exhibition ended, but in the meantime, relying on the delivery of this critical system, the plaintiff had traveled to the exhibition, carted the other pieces of the system, paid freight, engaged lodging, etc. No actual business was supposed to take place (i.e., no specific lost profits), but it was still a big waste of money in the plaintiff's mind.

Posture: Defendant appealed the award for damages.

Issue: Can a wronged buyer recover damages when no business loss took place?

Holding: Yes, the carrier was properly notified, so this is a substantial and material breach. When damages are intangible, we should settle on the most definite and certain method available.

Rule: It would be unjust if plaintiffs could not recover expenses incurred by reliance on contract fulfillment.

Reasoning: All other losses would be pure speculation.

Dicta: