| OCR Text |
Show Face 4 27, 1958 Tuesday, May THE DAILY RECORD Supreme Court Opinions IN THE SUPREME COURT OF THE STATE OF UAH tiffs expenses for attorneys fees should not have been allowed because they are not generally recoverable unless expressly provided for by contract or authorPacific Coast Title Insurance ized by statute (1). That such is Company, a corporation, rule we agree. But it Plaintiff and Respondent, the general applies to claims for attorneys v, fees within ithe action itself, and Hartford Accident & Indemnity not to situations such as the inCompany, a corporation. stant one. Defendant and Appelant The rule as to what damages No. 8720 are recoverable for breach of contract is based upon the concept CROCKETT, Justice: of reasonable foreseeability that This case is cgnate to Pruden- loss of such general character tial Federal Savings & Loan As- would result from the breach. sociation, et al, v. Hartford Acci- Therefore, to be compensable, the dent & Indemnity Company re- loss must result from the breach Utah 2d, ported herewith in the natural and usual course P. 2d , and the background of events, so that it can fairly facts set forth therein are perti- and reasonably be said that if the nent here. The plaintiff, Pacific minds of the parties had adverted Coast Title Company, was in- to breach when the contract was . volved in the transaction because made, loss of such character it wrote the policies of title in- would have been within their surance on the homes constructed contemplation (2). in the Morningside Heights SubApplying the above rule to this division. The contract required case: it could reasonably be foreif to issue a policy on each home seen that the natural and usual before the mortgage was accepted consequence of Cassadys failure and the loan approved by Pru- to pay the laborers and material-me- n dential Federal Savings Company would bring about the series so money could be advanced of events which occurred: that under the progress payment, plan. liens would be filed and legal proThis necessitated the issuance of ceedings instituted to enforce policies before the rights of ma- them; that plaintiff Title Comterialmen and laborers had been pany, having the duty to keep the concluded. The hazard of such titles clear, would interpose deprocedure was obvious to the fenses and attend to some dispoparties. It was for that reason sition of the claims, which would that the plaintiff Title Company require the services of attorneys was made obligee on Hatrfords and count costs incidental thereto.-Tha- t bond which recited that it would is the type of loss for which be saved harmless from defaults, Hartfords bond was given to on the part of the contractor, guard against Affirmed. Cost to plaintiff. Cassady Co., Inc., one of whose contractual duties was to keep WE CONCUR: and maintain each lot or building Roger I. McDonough, site free and clear of labor and Chief Justice material liens. Lester A. Wade, Justice Because of Cassadys failures Geo. W. Worthen, Justice to meet payments to its subconF. Henri Henriod, Justice material-men, laborers and tractors, a number of them filed 1. See Dahl v. Prince, 119 Utah and sought to foreclose liens 556, 230 P.2d 328; St. Joseph the Title homes. Plaintiff Stock Yards Co. v. Love, 57 against in accordance with its Utah 450, 195 Pac. 305; United Company, commitment to keep title to the States Fidelity & Guaranty Co. env. Frohmiler, 71 Ariz. 377, 227 properties unencumbered, to decounsel P.2d 1007; 15 Am. Jur. p. 550; gaged interpose fenses to the foreclosure of the and 25 C J.S., Damages Sec. 50, liens; eventually settlement was P. 531. and 2. were The See Hadley v. Baxendale, 9 arranged paid. they basis of the judgment here is for Exch. 341, 156 Eng. Rep. (1854); reimbursement for attorney's fees see also Sprague v. Boyles and costs it incurred in defendBros. Drilling Co., 4 Utah 2d foreclosure of the ing against 344, 294 P.2d 689; Restatement liens. of Contracts Sec. 330; 25 C.J.S., The attack Hartford makes Damages Sec. 23, p. 480; and 15 Am. Jur. 451. upon the judgment is that plain You Can Give Better Service To Your Clients By Running Your Legals -- ANY DAY OF THE WEEK 421 Church Street -- EM ... in 4-36- 49 |
