Newark City Ice Co. v. Fisher

No. 28
Decided Circuit Court of Appeals, Third Circuit
Disposition
affirmed
full scope · unanimous
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Court
Circuit Court of the United States for the District of New Jersey
Decided
Judge
BUTLER, District Judge
Posture
Judgment for defendant in circuit court, reversed on first appeal and remanded for assessment of damages
Defendant (1)
Newark City Ice Co.
It. Y. iindabury, John O. H. Pitney
v.
Plaintiff (1)
Fred S. Fisher
Roger Foster

Overview

The judgment of the circuit court assessing damages is affirmed.

Case summary

This case involves a second appeal by Newark City Ice Co. after it breached a contract to accept and pay for ice from Fred S. Fisher. In the first appeal, the Circuit Court of Appeals reversed a judgment for the defendant and remanded for assessment of damages. On remand, the circuit court calculated damages as the difference between the contract price and market value at the time of breach, less expenses saved by the plaintiff due to the breach. The defendant appealed this damages assessment, arguing errors in the measure applied. The appellate court affirmed, holding that the measure of damages was correct and in accordance with its prior suggestions, as it reflected the plaintiff's lost profits from the breach.

Abstract

The case is a second appeal following a breach of contract where the buyer failed to accept and pay for ice as agreed. After the first appeal reversed a judgment for the defendant and remanded for damages calculation, the trial court awarded damages based on the difference between the contract price and market value at breach, minus the plaintiff's saved expenses. The appellate court affirmed this measure as correctly reflecting the plaintiff's lost profits.

Opinion of the court

Majority
opinion
BUTLER, District Judgejoined by DALLAS, Circuit Judge, WALES, District Judge
  • Measure of damages for breach of contract to accept goods is lost profits calculated as contract price minus market value at breach time, less saved expenses
  • Court's prior suggestions on damages measure were correct and followed on remand
  • Plaintiff's readiness to deliver ice was established in first appeal; possession details are unimportant
  • Defendant's assignments of error regarding damages measure cannot be sustained

Jurisdiction

not challenged
Subject matter
Diversity jurisdiction or federal question jurisdiction (implied from Circuit Court of Appeals review)
Jurisdictional facts
  • Case brought in Circuit Court of the United States for the District of New Jersey
  • Appeal to Circuit Court of Appeals, Third Circuit

Procedural posture

Posture at trial
Judgment for defendant in circuit court, reversed on first appeal and remanded for assessment of damages
Posture on appeal
Second appeal (writ of error) from assessment of damages after remand
Preserved issues
  • Measure of damages applied by circuit court on remand
Forfeited issues
  • Numerous assignments of error relating to measure of damages (court deemed unnecessary to discuss individually)

Subsequent history

Petition for rehearing
not filed

Legal categories

Business

Case record

Full case name
NEWARK CITY ICE CO. v. FISHER
Docket number
No. 28
Court
Circuit Court of Appeals, Third Circuit
Trial court
Circuit Court of the United States for the District of New Jersey
Decided
Opinion author
BUTLER, District Judge
Opinion type
published
Precedential status
precedential
Judges on panel
DALLAS, Circuit JudgeBUTLER, District JudgeWALES, District Judge

Issues & holdings

1
Issues raised
1
affirmed
1
Holdings
Standard of review

Not explicitly stated, but implied de novo review of legal measure of damages

Disposition rationale

Measure of damages was in strict accordance with court's prior suggestions and correctly calculated lost profits as difference between contract price and market value at time of breach, less saved expenses

Preservation

Issue preserved for review

Holdings of the court

Measure of damages for breach of contract to accept and pay for goods
The measure of damages is the difference between the contract price and the market value at the time when the goods should have been accepted, less expenses the seller was saved by the buyer's refusal to accept
Plaintiff's loss consists of profits that would have been realized if ice had been accepted and paid for; calculation based on contract price minus market value at breach time, adjusted for saved loading costs
unanimousbinding precedent

Error analysis

  • Circuit court applied incorrect measure of damages on remand — procedural · no error foundNot applicable as no error found · not applicable

Burden of proof

Prosecution burden
Plaintiff must prove breach of contract and damages by preponderance of evidence
Burden met
true

Standards of review

  • Measure of damages applied by circuit court — de novo Court reviewed legal measure of damages as a question of law, affirming its prior ruling

Timeline

4
Events
— Prior to first appeal
Span
appeal eventcited in opinion

Circuit Court of Appeals, Third Circuit decided second appeal affirming damages assessment

Outcome: Affirmed

Final disposition of case

Circuit Court of Appeals · Parties appellate court
After remandhearingcited in opinion

Circuit court heard further testimony and assessed damages on remand as directed

Outcome: Damages assessed for plaintiff

Defendant appealed this damages assessment

Circuit Court · Parties trial court
First appeal date (implied)appeal eventcited in opinion

First appeal to Circuit Court of Appeals, Third Circuit reversed judgment and remanded for damages assessment

Outcome: Reversed and remanded

Established defendant's liability and directed damages calculation method

Circuit Court of Appeals · Parties appellate court
Prior to first appealtrial eventcited in opinion

Circuit court entered judgment for defendant Newark City Ice Co. in breach of contract action

Outcome: Judgment for defendant

Led to first appeal where reversal occurred

Fred S. Fisher · Newark City Ice Co. · Circuit Court trial court

Facts & evidence

Key facts

4 facts
  1. Defendant Newark City Ice Co. breached contract to accept and pay for ice from plaintiff Fred S. Fisher
  2. Plaintiff had ice ready for delivery at time of breach
  3. First appeal reversed judgment for defendant and remanded for assessment of damages
  4. Second appeal challenges damages assessment on remand

Procedural history

4 steps
  1. Circuit court initially entered judgment for defendant
  2. First appeal reversed and remanded for damages assessment (10 C. C. A. 546, 02 Fed. 569)
  3. Circuit court assessed damages on remand
  4. Defendant appeals damages assessment

Evidence in the record

Direct
  • Plaintiff had ice ready for delivery at time of breach (established in first appeal)
Documentary
  • Contract for sale of ice (implied)
Circumstantial
  • Market value of ice at time of breach (implied from damages calculation)

Objects of relevance

Ice (subject of contract)

Authorities

Cited authorities (1)

10 C. C. A. 546, 02 Fed. 569
followedprecedent
Citation to prior appeal in this case where judgment was reversed and remanded for damages assessment

Related cases (1)

10 C. C. A. 546, 02 Fed. 569
prior appeal
Reversed and remanded for damages assessment

Standards & doctrines

  • Measure of damages for breach of contract to accept goods

Legal principles applied

  • Damages should compensate for actual loss from breach
  • Expenses saved due to breach must be deducted from damages

Notable quotes

“The plaintiff’s loss by the defendant’s failure to accept and pay for the ice, was the loss of such profits as he would have realized if the ice had been accepted and paid for; and these profits consist of the difference between the contract price and the value of the ice in the market at the time when it should have been accepted — less the cost of loading, which the plaintiff was saved by the refusal to accept.”
BUTLER, District Judge — Explaining the correct measure of damages for breach of contract to accept goods
Defines legal standard for calculating damages in such cases
Index terms54
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Entities and documentation
Legal actions
Action type
affirmed
Target
circuit court's judgment assessing damages on remand
Appealed from
Circuit Court of the United States for the District of New Jersey
Context
Court affirms the damages assessment, holding that the measure applied was correct and in accordance with prior suggestions
Scope
full
Disposition vote
unanimous
Action type
reversed and remanded
Target
circuit court's initial judgment for defendant
Appealed from
Circuit Court of the United States for the District of New Jersey
Citation
10 C. C. A. 546, 02 Fed. 569
Context
In first appeal, court reversed judgment for defendant and remanded for assessment of damages
Scope
full
Further instructions
Direct circuit court to hear further testimony and ascertain damages in accordance with court's suggestions
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ButlerWales
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