Globe Refining Co. v. Landa Cotton Oil Co., 190 U.S. 540 (1903)

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Globe Refining Company v. Landa Cotton Oil Company

No. 241

Submitted April 16, 1903
Decided June 1, 1903
190 U.S. 540

ERROR TO THE CIRCUIT COURT OF THE UNITED

STATES FOR THE WESTERN DISTRICT OF TEXAS

Syllabus

In case of a breach of contract, a person can only be held responsible for such consequences as may be reasonably supposed to be in contemplation of the parties at the time of making the contract, and mere notice to a seller of some interest or probable action of the buyer is not enough necessarily and as matter of law to charge the seller with special damage on that account if he fails to deliver the goods.

Where the amount of damages for breach of contract is made to appear to be more than $2000, the judge of the circuit court may, on exceptions properly taken, try the question of jurisdiction separately, and if the damages have been purposely and fraudulently magnified, he may dismiss the cause. The grounds upon which he bases his decision are reviewable in this Court.

The case is stated in the opinion of the Court.