Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca8-05-02985/USCOURTS-ca8-05-02985-0/pdf.json

Parties Involved:
Gainey Transportation Services
Appellant
Hallmark Cards
Appellee

Document Text:

United States Court of Appeals

FOR THE EIGHTH CIRCUIT

___________

No. 05-2985

___________

Hallmark Cards, Inc., a Missouri *

Corporation, *

*

Appellee, * Appeal from the United States

* District Court for the Western

v. * District of Missouri.

*

Gainey Transportation Services, Inc., * [UNPUBLISHED]

a Michigan Corporation, *

*

Appellant. *

___________

Submitted: February 13, 2006

Filed: February 17, 2006

___________

Before WOLLMAN, FAGG, and ARNOLD, Circuit Judges.

___________

PER CURIAM.

When its lease on computer equipment expired, Hallmark Cards, Inc.

contracted with Gainey Transportation Services, Inc. to transport the equipment back

to the lessor. During the transfer, the equipment was stolen. After Hallmark

negotiated with and paid the amount of loss to the lessor under a liquidated damages

provision in the lease, the equipment was found. Hallmark then sold the equipment

and brought this diversity action against Gainey Transportation for breach of the

shipping contract. As damages, Hallmark sought the difference between the amount

paid to the lessor and the amount recouped in the sale. Gainey Transportation

Appellate Case: 05-2985 Page: 1 Date Filed: 02/17/2006 Entry ID: 2011094
*

The Honorable Ortrie D. Smith, United States District Judge for the Western

District of Missouri. 

-2-

conceded liability, but contested the amount of damages. The district court*

 granted

summary judgment to Hallmark, holding that under Missouri law, Hallmark’s

damages were actual damages, which are recoverable, rather than special damages,

which generally are not. See The Paper Magic Group, Inc. v. J.B. Hunt Transp., Inc.,

318 F.3d 458, 461-62 (3d Cir. 2003). The court held the amount of damages paid by

Hallmark to the lessor reflected the equipment’s value, and the damages were

reasonably foreseeable to Gainey Transportation under the circumstances. The court

explained that Gainey Transportation knew it was transporting leased office

equipment from a business that manufactures greeting cards to a company in the

business of leasing property to others. Because Gainey Transportation had ample

reason to know Hallmark leased the equipment from the lessor, it was foreseeable to

Gainey Transportation that Hallmark would be liable to the lessor in the event of loss

or theft. 

Gainey Transportation appeals arguing the value of goods as determined by the

lease was not known to Gainey Transportation and thus the damages constitute

unrecoverable special damages. Having carefully reviewed the record and the

applicable law, we agree with the district court’s assessment of the issue. Because

we have nothing to add to the district court’s analysis, we affirm without additional

explanation. See 8th Cir. R. 47B. 

______________________________

Appellate Case: 05-2985 Page: 2 Date Filed: 02/17/2006 Entry ID: 2011094