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HAWKINS v. McGEE
Case Summary: Hawkins v. McGee, Supreme Court of New Hampshire (Dec. 4, 1929)
Factual and Procedural Background
This action in assumpsit was brought against a surgeon for breach of an alleged parol warranty that he would "make the hand a hundred per cent perfect hand" or "a hundred per cent good hand." The plaintiffs (the boy and his father) sought consent for an operation to remove scar tissue from the plaintiff's right palm and graft skin from the plaintiff's chest. The scar tissue resulted from a severe burn sustained approximately nine years earlier.
At trial by jury, the writ included both a count in assumpsit (on the alleged guaranty) and a count in negligence; the negligence count was nonsuited without exception. Defendant's motions for a nonsuit and for a directed verdict on the assumpsit count were denied and exceptions taken. During trial the defendant reserved exceptions to the argument of plaintiff's counsel and to the court's charge and refusal of certain instructions.
The jury returned a verdict for the plaintiff. The defendant moved to set aside the verdict on multiple grounds, including that it was contrary to the evidence and excessive; the trial court denied the motion except that it found the damages excessive and ordered the verdict set aside unless plaintiff remitted all in excess of $500. The plaintiff refused to remit, and the verdict was set aside "as excessive and against the weight of the evidence." The exceptions were transferred to this Court.
Legal Issues Presented
- Whether words spoken by the defendant surgeon—specifically, "I will guarantee to make the hand a hundred per cent perfect hand" or "a hundred per cent good hand"—could properly be found by the jury to have contractual import (i.e., constitute a warranty) or whether that question was for the court as a preliminary matter.
- What is the proper measure of damages in an action for breach of such a guaranty by a physician who promised a perfect or good result from surgery?
- Whether the trial court's instruction permitting the jury to award damages for "pain and suffering" as an element of contract damages and to treat change for the worse as a separate element was legally correct.
- Whether the trial court properly denied the defendant's requested instructions (including requests that a finding require mutual understanding of the guaranty and that liability depend on whether further operations could correct the disability).
Arguments of the Parties
Plaintiff's Arguments
- The defendant orally promised—"I will guarantee to make the hand a hundred per cent perfect hand" or "a hundred per cent good hand"—and this alleged guaranty constituted a warranty actionable in assumpsit.
- There was evidence that the defendant repeatedly solicited the opportunity to perform the operation and that plaintiff and his father accepted the defendant's assurance as an inducement to consent to the operation.
- Plaintiff's counsel advanced the theory in cross-examination that the defendant sought an opportunity to "experiment on skin grafting" in which he had had little previous experience; if accepted by the jury, this would support an inference that defendant intended the words to be taken as a binding guaranty.
Defendant's Arguments
- Even if the quoted words were spoken, they should reasonably be understood only as expressions of opinion or strong expectation—predictions about probable result or duration of treatment—not as an intention to enter into any contractual relation.
- Based on the common knowledge of the uncertainty attending surgical operations, no reasonable person would construe the surgeon's language as a contractual guaranty to make a damaged bodily part "one hundred per cent" perfect.
- The defendant also made requests for instructions (later denied) that the court characterize the only issue as whether there was a "special contract" and that liability should require mutual understanding that the doctor guaranteed a perfect result; he further requested that the jury be told that, even if a guarantee were found, defendant would not be liable unless a further operation would not correct the disability.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Davis v. Company, 77 N.H. 403, 404 | Defines contractual damages as compensation measured in the terms of the contract; losses recoverable are those the parties had in mind or knew would probably result from breach. | Used to state general principle that contract damages aim to place plaintiff in position had contract been kept and that recoverable losses are those within parties' contemplation. |
| Hurd v. Dunsmore, 63 N.H. 171 | Foreseeability/parties' contemplation as limiting recoverable contract damages. | Referred to when explaining limits on damages recoverable for breach of warranty and to support analogous application to this case. |
| 3 Williston, Contracts, ss. 1338, 1341 | Textual principles: damages measured by contract terms; measure based on what defendant should have given, not what plaintiff expended. | Cited to underline general contract damages principles applied to determine correct measure here. |
| Hooper v. Story, 155 N.Y. 171 | Analogous rule for breach of warranty in sale of chattels: damages measured by difference between warranted value and actual value, plus incidental losses reasonably contemplated. | Relied upon by the court to analogize machinery/sale warranty damages to a surgeon's guaranty for purposes of measuring damages. |
| Adams c. Co. v. Wimbish, 201 Ala. 548 | Authority applying the chattel-warranty measure of damages (difference in value plus incidental losses). | One of several out-of-state authorities cited to support the applied measure of damages by analogy. |
| Isaacs v. Company, 108 Kan. 17 | Applied the usual rule of damages for breach of warranty in sale of chattels. | Cited among authorities supporting difference-in-value measure for analogous warranty breaches. |
| Paducah c. Co. v. Proctor, 210 Ky. 806 | Authority for chattel-warranty damages rule. | Cited as supporting authority for the damages analogy adopted by the court. |
| Pioneer c. Co. v. McCurdy, 151 Minn. 304 | Chattel-warranty damages rule. | Cited in support of the court's adoption of the difference-in-value measure. |
| Christianc. Co. v. Goodman, 132 Miss. 786 | Chattel-warranty damages authority. | Listed among authorities for the rule applied by analogy. |
| Hardie c. Co. v. Company, 150 N.C. 150 | Rule that measure of recovery is based on what defendant should have given the plaintiff. | Used to support the general contract damages principle cited from Williston and to analogize to this case. |
| York Mfg. Co. v. Company, 278 Pa. St. 351 | Authority for chattel-warranty damages rule. | Cited as further supporting authority for the difference-in-value rule. |
| General Motors c. Co. v. Company, 47 R.I. 88 | Another decision applying warranty-damages principles. | Cited among cases supporting damages measure by analogy. |
| Cavanagh v. Company, 24 S.D. 349 | Chattel warranty damages authority. | Included in list of supporting authorities for the adopted measure. |
| Foutty v. Company, 99 W. Va. 300 | Authority applying warranty-damages measure. | Cited with other cases as supporting precedent for the damages rule. |
| Union Bank v. Blanchard, 65 N.H. 21, 23 | As a general rule, vendee's damages for breach of warranty equal difference between value as warranted and actual value, including anticipated losses. | Relied upon as established New Hampshire authority to support the damages measure applied by analogy. |
| Noyes v. Blodgett, 58 N.H. 502 | Support for the principle limiting recoverable contract damages to those within parties' contemplation. | Cited with other NH authorities to support rules limiting damages recoverable. |
| Woburn c. Bank v. Woods, 77 N.H. 172 | Authority that the relevant standard for interpreting a promisor's words is external conduct and understanding, not internal reservations. | Applied to reject defendant's requested instruction requiring both parties to have the same internal understanding of guaranty. |
| McConnell v. Lamontagne, 82 N.H. 423, 425 | Same principle that internal mental reservations are immaterial; focus on external manifestations. | Used to support the court's rejection of defendant's request that both parties must have understood the words in the same sense. |
| Eleftherion v. Company, ante, 32 | Another New Hampshire decision cited for the external standard of promise interpretation. | Cited with Woburn and McConnell to support the external standard for judging whether a guaranty was made and relied upon. |
| 1 Sutherland, Damages (4th ed.), s. 92 | Textual authority on measuring damages as difference in value. | Cited to support the court's conclusion about the proper measure of damages in the present case. |
| P. L. c. 166, s. 69, VII | Statutory citation referenced among authorities addressing measures of damages for warranty breaches. | Cited as part of the body of authorities analyzed in determining the proper damages rule. |
Court's Reasoning and Analysis
1. Contract formation / warranty question:
The court acknowledged the preliminary legal question whether words spoken could possibly bear the meaning imputed by the plaintiff. It recognized that expressions of opinion or predictions (for example, estimates of hospitalization time or return-to-work) could not reasonably be treated as contractual promises. However, the court held that the specific utterance—"I will guarantee to make the hand a hundred per cent perfect hand" or "a hundred per cent good hand"—if proven, would on its face support a finding of warranty.
The defendant argued these words were mere expressions of expectation, and the court conceded that, absent countervailing facts, the argument grounded on the uncertainty of surgical results might be persuasive. Nevertheless, the court found additional evidence supporting the plaintiff's position: testimony that defendant repeatedly solicited the opportunity to perform the operation and plaintiff's counsel's theory that defendant sought to "experiment on skin grafting" where he had little experience. Taken together, the court concluded there was a reasonable basis for the jury to infer the defendant intended his words to be accepted at face value as an inducement to consent. Accordingly, the question whether the alleged guaranty was made was properly submitted to the jury.
2. Measure of damages:
The court examined the trial court's charge, which allowed the jury to award (1) pain and suffering caused by the operation and (2) "positive ill effects" of the operation, as elements of damage. The Supreme Court held that this instruction was erroneous.
Relying on contract damages principles (including cited New Hampshire cases and standard treatises), the court stated that damages for breach of contract are intended to compensate in terms of the contract—to put the plaintiff in the position he would have been in had the defendant kept the contract. The correct measure, applied by analogy to warranty cases, is the difference between the value to the plaintiff of the promised result (a perfect or good hand) and the value of the hand in its actual condition after the operation, including incidental consequences which were within the contemplation of the parties when the contract was made.
The court explained that pain and suffering incident to the operation was part of the consideration provided by the plaintiff (part of the "price" he was willing to pay) and therefore is not an appropriate separate measure of contract damages. Similarly, any worsening of the hand caused by the operation is encompassed within the difference-in-value rule and should not be treated as a separate item of damage; conversely, damages could be awarded for the surgeon's failure to improve the hand even if evidence did not show the hand was made worse by the operation.
3. Trial court rulings on requested instructions:
The court found defendant's requests for instructions to be "loosely drawn" and properly denied. It explained that several factual issues were present and that certain requests were inaccurate statements of the law or inconsistent with the evidence. Specifically, the court rejected a request that the jury be told the "only issue" was whether there was a special contract guaranteeing a perfect hand; the court also rejected a request that liability require that both doctor and patient "both understood" that a guarantee of a perfect result existed, stating that the relevant standard is external (what the promisor's words reasonably import and how the offeree acted in reliance), not the parties' internal subjective states. The court also held it would have been erroneous to instruct the jury as requested that a further operation must be shown to be futile before finding liability, because the defendant had refused to perform any further operation and the evidence could support an award sufficient to cover the cost of such an operation.
4. Effect of erroneous damages instruction on disposition:
The court inferred the trial court applied the same erroneous rule of damages when it set aside the verdict as excessive. Because the damages rule given to the jury was legally incorrect, the Supreme Court found it unnecessary to decide whether the trial court correctly determined that damages in excess of $500 were unsupported by the evidence.
Holding and Implications
Holding: The Supreme Court of New Hampshire ordered a new trial. The core disposition is: New trial.
Immediate consequences and legal implications drawn from the opinion (as stated by the Court):
- The trial court correctly submitted to the jury the question whether the surgeon's words amounted to a warranty, given evidence that the surgeon solicited the opportunity to perform the operation and that plaintiff relied upon the statement.
- The trial court erred in instructing the jury that pain and suffering arising from the operation was a separate element of contract damages; such pain and suffering is part of the consideration the plaintiff provided and not a proper separate measure of damages for breach of the alleged guaranty.
- The correct measure of damages for breach of the alleged guaranty is the difference between the value to the plaintiff of the hand as warranted (a perfect or good hand) and the value of the hand in its present condition after the operation, including incidental consequences that were within the contemplation of the parties when the contract was formed.
- The trial court also erred in treating a change for the worse as a separate element distinct from the difference-in-value rule, although any worsening is encompassed in the proper measure; conversely, lack of evidence of worsening does not preclude recovery for failure to improve.
- Requested instructions that misstate the law or are inconsistent with the evidence (including requiring mutual internal understanding of the guaranty) were properly denied because the controlling standard is objective—what the promisor's language reasonably imported and whether the offeree acted in reliance.
The opinion therefore reverses the judgment and remands for a new trial because of the erroneous damages instruction and its effect on the verdict; the Court did not decide whether the jury's award in excess of $500 was unsupported by the evidence because the damages rule applied below was legally incorrect.
MARBLE, J., did not sit; the other justices concurred.
Whether words spoken may properly be found by the jury to have had a contractual import is a preliminary question of law for the trial court. In assumpsit against a physician on a parol guaranty in the following words: "I will guarantee to make the hand a hundred per cent perfect hand" or "a hundred per cent good hand," evidence that the defendant repeatedly solicited an opportunity to perform an operation of skin grafting justified an inference that the defendant sought an opportunity to experiment and intended his words to be accepted at their face value, as an inducement for giving consent to the operation, and the question whether the words spoken amounted to a warranty was properly submitted to the jury. In such action the measure of damages does not include the plaintiff's pain and suffering, but is the difference between the value to him of a perfect or good hand, and the value of his hand in its present condition including any incidental consequences fairly within the contemplation of the parties when they made their contract. Nor does the measure of damages include as a separate item any change for the worse in the condition of the hand resulting from the operation, but under such guaranty damages might properly be assessed for the defendant's failure to improve the condition of the hand though not made worse as a result of the operation. When an offeror uses language which reasonably imports a certain undertaking on his part and the offeree acts in reliance thereon, a request that to establish a contract both parties must have understood the words in the same sense is properly denied. A requested instruction that the jury be directed to make a specific finding is properly denied when there is evidence to justify a different conclusion.
BRANCH, J.
1. The operation in question consisted in the removal of a considerable quantity of scar tissue from the palm of the plaintiff's right hand and the grafting of skin taken from the plaintiff's chest in place thereof. The scar tissue was the result of a severe burn caused by contact with an electric wire, which the plaintiff received about nine years before the time of the transactions here involved. There was evidence to the effect that before the operation was performed the plaintiff and his father went to the defendant's office and that the defendant in answer to the question, "How long will the boy be in the hospital?", replied, "Three or four days, . . . not over four; then the boy can go home, and it will be just a few days when he will be able to go back to work with a perfect hand." Clearly this and other testimony to the same effect would not justify a finding that the doctor contracted to complete the hospital treatment in three or four days or that the plaintiff would be able to go back to work within a few days thereafter. The above statements could only be construed as expressions of opinion or predictions as to the probable duration of the treatment and plaintiff's resulting disability, and the fact that these estimates were exceeded would impose no contractual liability upon the defendant. The only substantial basis for the plaintiff's claim is the testimony that the defendant also said before the operation was decided upon, "I will guarantee to make the hand a hundred per cent perfect hand" or "a hundred per cent good hand." The plaintiff was present when these words were alleged to have been spoken, and if they are to be taken at their face value, it seems obvious that proof of their utterance would establish the giving of a warranty in accordance with his contention.
The defendant argues, however, that even if these words were uttered by him, no reasonable man would understand that they were used with the intention of entering into any "contractual relation whatever," and that they could reasonably be understood only "as his expression in strong language that he believed and expected that as a result of the operation he would give the plaintiff a very good hand." It may be conceded, as the defendant contends, that before the question of the making of a contract should be submitted to a jury, there is a preliminary question of law for the trial court to pass upon, i.e. "whether the words could possibly have the meaning imputed to them by the party who founds his case upon a certain interpretation, "but it cannot be held that the trial court decided this question erroneously in the present case. It is unnecessary to determine at this time whether the argument of the defendant based upon "common knowledge of the uncertainty which attends all surgical operations" and the improbability that a surgeon would ever contract to make a damaged part of the human body "one hundred per cent perfect" would, in the absence of countervailing considerations, be regarded as conclusive, for there were other factors in the present case which tended to support the contention of the plaintiff. There was evidence that the defendant repeatedly solicited from the plaintiff's father the opportunity to perform this operation, and the theory was advanced by plaintiff's counsel in cross-examination of defendant, that he sought an opportunity to "experiment on skin grafting" in which he had had little previous experience. If the jury accepted this part of plaintiff's contention, there would be a reasonable basis for the further conclusion that if defendant spoke the words attributed to him, he did so with the intention that they should be accepted at their face value, as an inducement for the granting of consent to the operation by the plaintiff and his father, and there was ample evidence that they were so accepted by them. The question of the making of the alleged contract was properly submitted to the jury.
2. The substance of the charge to the jury on the question of damages appears in the following quotation: "If you find the plaintiff entitled to anything, he is entitled to recover for what pain and suffering he has been made to endure and what injury he has sustained over and above the injury that he had before." To this instruction the defendant seasonably excepted. By it, the jury was permitted to consider two elements of damage, (1) pain and suffering due to the operation, and (2) positive ill effects of the operation upon the plaintiff's hand. Authority for any specific rule of damages in cases of this kind seems to be lacking, but when tested by general principle and by analogy, it appears that the foregoing instruction was erroneous.
"By damages as that term is used in the law of contracts, is intended compensation for a breach, measured in the terms of the contract." Davis v. Company, 77 N.H. 403, 404. The purpose of the law is to "put the plaintiff in as good a position as he would have been in had the defendant kept his contract." 3 Williston, Cont., s. 1338; Hardie c. Co. v. Company, 150 N.C. 150. The measure of recovery "is based upon what the defendant should have given the plaintiff, not what the plaintiff has given the defendant or otherwise expended." 3 Williston, Cont., s. 1341. "The only losses that can be said fairly to come within the terms of a contract are such as the parties must have had in mind when the contract was made, or such as they either knew or ought to have known would probably result from a failure to comply with its terms." Davis v. Company, 77 N.H. 403, 404; Hurd v. Dunsmore, 63 N.H. 171.
The present case is closely analogous to one in which a machine is built for a certain purpose and warranted to do certain work. In such cases, the usual rule of damages for breach of warranty in the sale of chattels is applied and it is held that the measure of damages is the difference between the value of the machine if it had corresponded with the warranty and its actual value, together with such incidental losses as the parties knew or ought to have known would probably result from a failure to comply with its terms. Hooper v. Story, 155 N.Y. 171, 175; Adams c. Co. v. Wimbish, 201 Ala. 548; Isaacs v. Company, 108 Kan. 17; Paducah c. Co. v. Proctor, 210 Ky. 806; Pioneer c. Co. v. McCurdy, 151 Minn. 304; Christianc. Co. v. Goodman, 132 Miss. 786; Hardie c. Co. v. Company, 150 N.C. 150; York Mfg. Co. v. Company, 278 Pa. St. 351; General Motors c. Co. v. Company, 47 R. I. 88; Cavanagh v. Company, 24 S.D. 349; Foutty v. Company, 99 W. Va. 300. The rule thus applied is well settled in this state. "As a general rule, the measure of the vendee's damages is the difference between the value of the goods as they would have been if the warranty as to quality had been true, and the actual value at the time of the sale, including gains prevented and losses sustained, and such other damages as could be reasonably anticipated by the parties as likely to be caused by the vendor's failure to keep his agreement, and could not by reasonable care on the part of the vendee have been avoided." Union Bank v. Blanchard, 65 N.H. 21, 23; Hurd v. Dunsmore, supra; Noyes v. Blodgett, 58 N.H. 502; P. L. c. 166, s. 69, VII. We, therefore, conclude that the true measure of the plaintiff's damage in the present case is the difference between the value to him of a perfect hand or a good hand, such as the jury found the defendant promised him, and the value of his hand in its present condition, including any incidental consequences fairly within the contemplation of the parties when they made their contract. 1 Sutherland, Damages, (4th ed.), s. 92. Damages not thus limited, although naturally resulting, are not to be given.
The extent of the plaintiff's suffering does not measure this difference in value. The pain necessarily incident to a serious surgical operation was a part of the contribution which the plaintiff was willing to make to his joint undertaking with the defendant to produce a good hand. It was a legal detriment suffered by him which constituted part of the consideration given by him for the contract. It represented a part of the price which he was willing to pay for a good hand, but it furnished no test of the value of a good hand or the difference between the value of the hand which the defendant promised and the one which resulted from the operation.
It was also erroneous and misleading to submit to the jury as a separate element of damage any change for the worse in the condition of the plaintiff's hand resulting from the operation, although this error was probably more prejudicial to the plaintiff than to the defendant. Any such ill effect of the operation would be included under the true rule of damages set forth above, but damages might properly be assessed for the defendant's failure to improve the condition of the hand even if there were no evidence that its condition was made worse as a result of the operation.
It must be assumed that the trial court, in setting aside the verdict, undertook to apply the same rule of damages which he had previously given to the jury, and since this rule was erroneous, it is unnecessary for us to consider whether there was any evidence to justify his finding that all damages awarded by the jury above $500 were excessive.
3. Defendant's requests for instructions were loosely drawn and were properly denied. A considerable number of issues of fact were raised by the evidence, and it would have been extremely misleading to instruct the jury in accordance with defendant's request number 2, that "The only issue on which you have to pass is whether or not there was a special contract between the plaintiff and the defendant to produce a perfect hand." Equally inaccurate was defendant's request number 5, which reads as follows: "You would have to find, in order to hold the defendant liable in this case, that Dr. McGee and the plaintiff both understood that the doctor was guaranteeing a perfect result from this operation." If the defendant said that he would guarantee a perfect result and the plaintiff relied upon that promise, any mental reservations which he may have had are immaterial. The standard by which his conduct is to be judged is not internal but external. Woburn c. Bank v. Woods, 77 N.H. 172; McConnell v. Lamontagne, 82 N.H. 423, 425; Eleftherion v. Company, ante, 32. Defendant's request number 7 was as follows: "If you should get so far as to find that there was a special contract guaranteeing a perfect result, you would still have to find for the defendant unless you further found that a further operation would not correct the disability claimed by the plaintiff." In view of the testimony that the defendant had refused to perform a further operation, it would clearly have been erroneous to give this instruction. The evidence would have justified a verdict for an amount sufficient to cover the cost of such an operation, even if the theory underlying this request were correct.
4. It is unlikely that the questions now presented in regard to the argument of plaintiff's counsel will arise at another trial, and, therefore, they have not been considered.
New trial.
MARBLE, J., did not sit: the others concurred.
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