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Michigan Central R. Co. v. State

85 Ind. App. 557 (1927)

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Michigan Central R. Co. v. State

Indiana Appellate Court
85 Ind. App. 557 (1927)

JL

Facts

The State of Indiana (defendant) entered into a contract to purchase coal for the state prison. Indiana agreed to pay $3.40 per ton of coal under the contract. During the term of the contract, Michigan Central Railroad Company (plaintiff) mistakenly delivered a railcar of coal to the state prison. The employees at the prison accepted the shipment. That coal was intended to go to a third party. At the time of delivery, the market value of the coal was $6.85 per ton. The railroad company paid the market value of the coal to the intended recipient of the coal and sought reimbursement from the state. The state refused to pay the full amount, and the railroad company sued. The trial court determined that the proper measure of damages was the amount that the state would have paid for the coal under the contract, not the market value. The railroad company appealed.

Rule of Law

Issue

Holding and Reasoning (Remy, J.)

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