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Keywords

contractbreach of contractplaintiffdefendantdamagesnegligenceoverruledcontractual obligation

contractbreach of contractplaintiffdefendantjurisdictionnegligencestatutepleacorporationoverruled

Related Cases

Inhabitants of Milford v. Bangor Ry. & Electric Co., 104 Me. 233, 71 A. 759, 30 L.R.A.N.S. 531

Facts

The inhabitants of Milford brought an action against the Bangor Railway & Electric Company to recover the value of their town hall and other municipal property destroyed by fire in April 1905. The plaintiffs alleged that the fire was exacerbated by the defendant's negligence in failing to supply sufficient water through its hydrants, as required by their contract. The case was reported to the law court after the defendant filed a general demurrer to the declaration, which was subsequently overruled.

The plaintiffs say that said hydrants were erected according to contract, and that they ever paid the sum of $800 per annum to the said Penobscot Water & Power Company; and the plaintiffs say that said Penobscot Water & Power Company assigned said contract, by its deed in writing, with all its property and franchises, to a corporation called Public Works Company, organized under the laws of Maine.

Issue

The main legal issue was whether the Bangor Railway & Electric Company was liable for damages resulting from its failure to provide adequate water supply for fire extinguishment, as stipulated in the contract with the town of Milford.

The important question thus raised by the pleadings and contentions of the parties has never before been presented to this court, nor, so far as appears, has the precise question ever been directly involved and expressly determined in any jurisdiction, state or federal, in this country.

Rule

The court applied the principle that a party to a contract is liable for damages resulting from a breach of that contract, including consequential damages that may arise from the failure to perform contractual obligations.

It is provided by chapter 46, p. 53, of the Private and Special Laws of 1905 that the defendant corporation 'shall have, possess and enjoy all of the powers of a corporation formed under the provisions of chapter 47 of the Revised Statutes' of Maine.

Analysis

The court analyzed the allegations made by the plaintiffs, which claimed that the defendant had a contractual obligation to maintain hydrants and provide water of sufficient pressure and volume for fire extinguishment. The court noted that the plaintiffs had fully performed their part of the contract and that the defendant's failure to provide water was a direct breach of its obligations. The court emphasized that the damages claimed were not too remote, as they were a foreseeable consequence of the defendant's negligence.

But the demurrer admits the truth of the plaintiffs' allegations that the defendant 'wrongfully, carelessly, and negligently suffered and allowed the mains, pipes, and hydrants to be destitute of any current of water of sufficient pressure, force, and volume to be of any value or utility in extinguishing said fire, or any fire.'

Conclusion

The court overruled the defendant's demurrer, allowing the case to proceed, indicating that the plaintiffs had sufficiently stated a claim for breach of contract and negligence.

Who won?

The prevailing party was the inhabitants of the Town of Milford, as the court ruled in their favor by overruling the defendant's demurrer, allowing their claims to be heard.

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