Hammond & Co. v. Bussey, 20 Q.B.D. 79 (1887)

Historical Cases from Attorney Richard Clem: Hammond & Co. v. Bussey, 20 Q.B.D. 79 (1887).

In Hammond & Co. v. Bussey, 20 Q.B.D. 79 (1887), the defendant sold the plaintiff coal. The plaintiff was to re-sell the coal for steam ships, and the contract provided that the coal was to be suitable for that purpose. Defendant delivered the coal to plaintiff. The coal, however, was not of suitable quality, and this defect could not be ascertained by inspection. The poor quality of the coal became apparently only after the coal was sold to the final users. Those purchasers sued the plaintiff, and the plaintiff paid those damages. The plaintiff then sued the defendant, the original seller of the coal for the amount of the damages that it had paid out. The court in Hammond held that these damages were recoverable under the rule in Hadley v. Baxendale, 9 Exch. 341. They were damages that were reasonably within the contemplation of the parties as being probable as a result of the breach.

Hammond was cited with approval in Senior Estates, Inc., v. Bauman Homes, Inc., 539 P.2d 142 (Or. 1975) and distinguished in Globe Refining Co. v. Landa Cotton Oil Co., 190 U.S. 540 (1903).

Full Text of Hammond & Co. v. Bussey.

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Richard P. Clem is an attorney and continuing legal education (CLE) provider in Minnesota. He has been in private practice in the Twin Cities for 25 years. He has a J.D., cum laude, from Hamline University School of Law in St. Paul and a B.A. in History from the University of Minnesota. His reported cases include: Asociacion Nacional de Pescadores a Pequena Escala o Artesanales de Colombia v. Dow Quimica de Colombia, 988 F.2d 559, rehearing denied, 5 F.3d 530 (5th Cir. 1993), cert. denied, 510 U.S. 1041 (1994); LaMott v. Apple Valley Health Care Center, 465 N.W.2d 585 (Minn. Ct. App. 1991); Abo el Ela v. State, 468 N.W.2d 580 (Minn. Ct. App. 1991).

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