Should Kerr be allowed to recover damages from Radio? Explain.

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Should Kerr be allowed to recover damages from Radio? Explain.


Kerr Steamship Company sent a telegram at a cost of $26.78 to the Philippines through the Radio Corporation of America. The telegram, which contained instructions in unintelligible code for loading cargo on one of Kerr’s ships, was mislaid and never delivered. Consequently, the ship was improperly loaded and the cargo was lost. Kerr sued the Radio Corporation for $6,675.29 in profits lost on the cargo because of the Radio Corporation’s failure to deliver the telegram. Should Kerr be allowed to recover damages from Radio? Explain.

Explanation & AnswerSolution by a verified expert


An adequate notification regarding the intimation of risk for special damages, which may be observed by the business, was not provided by Company K. Company R was solely have the duty to deliver the message and no more. So, the defilement amendable for the violation of the obligation to deliver the message may be no more than the value of the accomplishment of that duty. So, Company K can only recover $26.78 from Company R, which was the cost of transportation.

Verified Answer

In this case, an amount of $26.78, which is the cost of communicating the telex, may be made as settlement for Company K. The resolved conviction of the court may enclose accountability for the telegraph company for the negligence to deliver a message within the boundaries of the law. On the one hand, if the terms of the telex may reveal the common description of a negotiation, which may be the subject of the message, the company may be accountable for the natural outcome of its negligence. On the other hand, if the tariffs have been settled and the idioms of communication may not provide any clue about the nature of the undertaking, the company's responsibility may be for official impairment or for the amount of transportation.

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