Western Union Telegraph Co. v. Nester - 309 U.S. 582 (1940)
U.S. Supreme Court
Western Union Telegraph Co. v. Nester, 309 U.S. 582 (1940)
Western Union Telegraph Co. v. Nester
Argued March 8, 1940
Decided April 22, 1940
309 U.S. 582
A telegraph company undertook to transmit a money order, the contract providing that it should not be liable for damages for delay or nonpayment, though due to negligence,
"beyond the sum of five hundred dollars, at which amount the right to have this money order promptly and correctly transmitted and promptly and fully paid is hereby valued."
Held, that the sum specified was not intended to prescribe a definite liability (liquidated damages),
but is a limitation upon the maximum permissible recovery for actual loss or damage properly alleged and shown by evidence. P. 309 U. S. 587.
106 F.2d 587 reversed.
Certiorari, post, p. 643, to review the affirmance of a judgment against a telegraph company in an action for breach of a money order contract. 25 F.Supp. 478.