National Chain Co. v. Campbell

• Decision Date: 30 January 1985
• Citation: 487 A.2d 132
• Parties: NATIONAL CHAIN COMPANY v. John J. CAMPBELL et al. 82-393-Appeal.
• Court: Rhode Island Supreme Court

Page 132

487 A.2d 132

NATIONAL CHAIN COMPANY v. John J. CAMPBELL et al.

82-393-Appeal.

Supreme Court of Rhode Island.

Jan. 30, 1985.

R. Kelly Sheridan, Jr., William M. Heffernan, Roberts Carroll Feldstein & Tucker, Providence, for plaintiff.

Paul K. Sprague, Robinson & Sprague, Warwick, for defendant.

OPINION

SHEA, Justice.

This is an appeal from judgments entered after a jury trial in Superior Court. The judgments awarded nominal damages of $1 to plaintiff, National Chain Company (National), and the sum of $400 on his counterclaim to the defendant, John J. Campbell (Campbell). National had sought to recover damages based on breach of contract and negligence, alleging that Campbell failed to perform in a workmanlike manner. Campbell had counterclaimed for the cost of services rendered. We reverse and remand for retrial on all issues.

National is a jewelry manufacturer with offices located in Warwick, Rhode Island. Campbell was hired to wallpaper the offices of National's president with wallcovering that had been previously purchased by National. The terms of the agreement were that Campbell would be paid on a time-spent basis. Upon completion of the job, the evidence shows that the wallpaper had ragged edges, that there were gaps at the seams, that it was curled up at the edges, and that it had glue stains, contact cement, and staples on it. National refused to pay Campbell and brought suit for recovery of the amount it had paid for the wallpaper and for the costs incurred in removing it and repairing the wall surface damaged by Campbell. National's complaint contained a second count based on negligence.

National's expert, Kenneth Normandin, an experienced wallpaper hanger, testified at trial about the quality of Campbell's work. It was his opinion that the gaps at the seams were caused by Campbell's failure to permit the material to dry and shrink to its normal shape before the seams were cut. In his words, "[I]t was just [a] terrible looking job." Normandin submitted an estimate for removing the wallpaper and preparing the walls for new wallpaper in the amount of $756, of which $300 was for stripping and preparing the walls. The balance was for installing new wallcovering for which National makes no claim.

National's first claim of error arises out of the trial justice's charge to the jurors that if they found for plaintiff, they could only award nominal damages in the amount of $1 because National had not produced any probative evidence of the original contract price. In his charge, he told the jury:

"There is no evidence in this case of what the cost would have been had Mr. Campbell properly completed his contract to paper the offices involved which National Chain contends he breached * * *.

"National Chain failed to prove the reasonable cost of properly performing that portion of the contract which National Chain says Mr. Campbell breached; and so, you cannot apply the formula for damages which the law places, and that is the cost of correction and completion less the cost of the plaintiff performing the job properly without your guessing or speculating * * *.

"I am instructing you that they failed in that duty to prove damages, and that you will not be allowed to bring back, even if you find a contract existed between National Chain and John J. Campbell, and even if you find that Mr. Campbell breached that contract by failing to perform it in a workmanlike fashion, you will--if that be your finding, then I instruct you to bring back a verdict in the amount of One Dollar in nominal damages for National Chain because National Chain failed in its burden of proof on damages."

The amount of damages sustained from a breach of contract must be proven with a reasonable degree of certainty, and the plaintiff must establish reasonably precise figures and cannot rely upon speculation. Restatement, Contracts § 331(1) (1932). The burden of proof therefore is on plaintiff to prove, by competent evidence, the amount of damages that it suffered because of defendant's failure to perform. Smith v. Zepp, 173 Mont. 358, 370, 567 P.2d 923, 930 (1977). However, "[p]laintiffs will not be denied recovery merely because the damages * * * are difficult to ascertain, as long as they prove damages with reasonable certainty." Id.

It is apparent from the instruction given that the trial justice failed to consider the testimony and evidence of National's expert concerning what the cost of repairing the walls would be apart from the expenses involved in hanging new wallcovering. In addition, he gave no consideration to National's evidence of the cost of the damaged wallpaper initially purchased by National in the amount of $1,981.14. ¹ Furthermore, since National was seeking only the cost of the ruined wallcovering and the cost of repairing the damaged wall surface, this instruction was inappropriate. Since the instruction given has no relation to National's claim for damages, it was error and will require a new trial.

The underlying rationale in breach-of-contract actions is to place the innocent party in the position in which he would have been if the contract had been fully performed. George v. George F. Berkander, Inc., 92 R.I. 426, 430, 169 A.2d 370, 372 (1961). A major consideration in determining the proper measure of damages is whether the...