New York Court of Appeals

Kerr Steamship Co., Inc., Respondent v. Radio Corporation of America, Appellant

May 31, 1927245 N.Y. 284

Summary

The New York Court of Appeals reversed the lower courts and held that the telegraph carrier, RCA, is liable only for the prepaid tolls of $26.78 because the cipher telegram gave no indication of the nature of the underlying transaction, applying the Hadley v. Baxendale rule limiting damages to the cost of carriage.