Opinion
No. 3792.
Decided December 7, 1948.
An owner of a motor vehicle, damaged in a collision, who had a business relationship with a bank for the financing of such vehicle may recover in assumpsit the damage sustained by the bank's failure to procure, as agreed, an extension of collision insurance until final payment due the bank under a conditional sales agreement was paid. In such case, the fact that the bank at the request of the owner of such vehicle agreed to procure an extension of the insurance for the duration of the loan and the fact that the premium of the insurance originally procured by the bank was paid with interest by the owner, imply an agreement to pay a reasonable charge for extending the insurance and is valuable consideration for the bank's agreement to perform. Damages for breach of contract are measured by the consequences of the breach which are in fact or should be contemplated by the parties when the contract is entered into. Where the plaintiff is held entitled to recovery in his action of assumpsit which he brought together with an action for negligence there is no occasion for a new trial in the assumpsit action, upon which defendant's motion for a nonsuit was granted, where the facts upon which the plaintiff is entitled to recover in such action were fully tried and determined.
ASSUMPSIT, in which the plaintiff sought to recover damages for breach of an alleged promise to procure collision insurance on his automobile. There was a second count in case for negligence in failing to procure such insurance. In May, 1946, the plaintiff purchased a Chevrolet sedan from the Capital City Motors. The defendant financed the purchase in consideration of a charge of $90, which included insurance and interest, and took an assignment of the conditional sale agreement. The loan ordinarily would have been a fifteen months transaction from May 23, 1946, but to accommodate the plaintiff the installments were made payable on the 3rd of each month. August 21, 1947, Mr. Dalton, the manager of the consumer credit department of the defendant called the plaintiff to advise him that the insurance was expiring on August 23. The plaintiff testified: "I asked Mr. Dalton at that time if he would extend the policy to the final date, when the final note was due, and he said he would." The defendant denied this statement of the conversation. At this time the amount of $65.29 was due the bank on the loan. On August 26, 1947, the plaintiff's automobile was damaged when it collided with a tree. No insurance was taken out to cover an accident after August 23.
Trial by jury. At the close of the plaintiff's case, the Court granted the defendant's motion for a nonsuit, subject to exception, with respect to the count in assumpsit; and denied one, subject to the defendant's exception, as to the count in case. The defendant excepted to the exclusion of evidence of contributory negligence, and to the denial of its motion for a directed verdict. It also excepted to a portion of the charge and to the denial of its motion to set aside the verdict, which was for the plaintiff. All questions of law raised by said exceptions were reserved and transferred by Leahy, J.
Sullivan Wynot (Mr. Wynot orally), for the plaintiff.
Orr Reno (Mr. Reno orally), for the defendant.
The granting of the motion for a nonsuit concerning the count in assumpsit was error. There was evidence from which the jury could find that the plaintiff's version of the telephone conversation on August 21 was correct. If Mr. Dalton, at the request of the plaintiff, did agree to have extended the insurance for the remaining term of the loan, it would follow as a matter of law under the circumstances that the plaintiff impliedly agreed to pay a reasonable charge for the service. Restatement, Contracts, s. 5, comment a, Illustration 1; Blanchette v. Sargent, 87 N.H. 15, 16; Elliot Hospital v. Turcotte, 79 N.H. 110, 111; Page v. Snell, 59 N.H. 531. The relations between the parties were those of business. Such an implied promise would be valuable consideration for Mr. Dalton's alleged agreement. Ela v. French, 11 N.H. 356. There was no evidence from which it could be found that the plaintiff could reasonably have expected a favor. "The rule that damages for breach of contract are the consequences of the breach which are in fact or should be contemplated by the parties when the contract is entered into (Davis v. Company, 77 N.H. 403, 404) is applicable." Busick v. Corporation, 91 N.H. 257, 259. See also, Johnson v. Waisman Bros., 93 N.H. 133, 135.
The defendant argues that Mr. Dalton was without authority to bind the bank by such an agreement as that alleged. It was undisputed that he had authority to arrange for insurance in connection with loans. The loan of the plaintiff was still outstanding in the amount of $65.29. The fact that Mr. Dalton was not required to have insurance if the loan was less than $130 does not mean that he was not permitted to if he thought best.
In returning a verdict for the plaintiff on the count in negligence, the jury did find that Mr. Dalton promised as alleged. The Court charged: "It comes down to a question of fact. Did or did not Mr. Dalton agree to do something he was under no obligation to do, or is his version of the story correct that he did not do so?" Since the fact upon which the plaintiff is entitled to recover in assumpsit has been fully tried and determined, there is no occasion for a new trial. Peaslee v. Dudley, 63 N.H. 220. Nor is there need of discussing whether the count in tort for negligence can be maintained, or of considering further the defendant's exceptions. No ruling of the court was obtained concerning the portion of the plaintiff's argument to which objection was made and the defendant did not save any exception. Whipple v. Railroad, 90 N.H. 261.
The verdict of the jury was for the amount of the repairs, $552.72. Since the insurance, if obtained, would have been on the so-called $25 deductible basis, the Court in awarding judgment to the plaintiff should deduct from the verdict that amount and the charge that would have been made for procuring the insurance. Ela v. French, supra.
Case discharged.
All concurred.