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Globe Refining Co. v. Landa Cotton Oil Co.

United States Supreme Court
190 U.S. 540 (1903)


Globe Refining Co. (Globe) (plaintiff) contracted to buy ten tanks of crude oil from Landa Cotton Oil (Landa) (defendant). Landa then decided not to sell. Globe alleged the following special damages in an attempt to recover more than the difference between the contract price of the oil and the market price at the time of Landa’s breach: that in preparation for Landa’s performance, Globe paid to send tank cars to Landa for Landa to fill with oil and return; that, as a result, Globe lost the use of its tanks for 30 days; that Globe, in reliance on the contract, contracted with its own customers to resell them the oil, and that its inability to do so cost it customers and reputation; and that Globe then had to pay to resend its tanks elsewhere. None of these allegations were explicitly contemplated for in the contract. The trial court dismissed Globe’s special allegations. Globe appealed.

Rule of Law


Holding and Reasoning (Holmes, J.)

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