Southwestern Telegraph & Telephone Co. v. Memphis Telephone Co.
Supreme Court of Arkansas
Appeal from Mississippi Chancery Court, Osceola District; Charles D. Frierson, Chancellor, STATEMENT by the court. The Memphis Telephone Company instituted this .suit, in the Osceola District of the Mississippi Chancery Court, against the Southwestern Telegraph & Telephone Company, the Tri-State Telephone Company and R. C. Rose, on November 10, 1911, asking damages for an alleged breach of the contract.
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Appeal from Mississippi Chancery Court, Osceola District; Charles D. Frierson, Chancellor, STATEMENT by the court. The Memphis Telephone Company instituted this .suit, in the Osceola District of the Mississippi Chancery Court, against the Southwestern Telegraph & Telephone Company, the Tri-State Telephone Company and R. C. Rose, on November 10, 1911, asking damages for an alleged breach of the contract. The complaint alleged, in substance, that the Tri-State Company owned and operated a telephone plant in northeast Arkansas, and was doing a long distance business in southeast Missouri, and in…
1Opinion of the Court
Smith, J.,
(after stating the facts). We think there is no foundation for the claim for punitive damages. It is true appellant deliberately broke the contract Sued on, after knowledge of its existence, but it is also true that it had purchased and paid for the controlling interest of the stock of the Tri-State Company before its officers knew of the existence of the contract. Rose, who appears to have been a very shrewd trader, admitted he told appellant nothing of this contract, until after the sale of his own stock had been consummated.
The serious question in the case is what damages are…
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