Threadgill v. Peabody Coal Co.

Peabody Coal (defendant) orally contracted with Threadgill (plaintiff) to probe test holes Peabody drilled in search of coal, and when Threadgill's probing device became stuck in a hole during Peabody's recovery attempts, Peabody refused to reimburse Threadgill despite an established industry custom of coal companies reimbursing testers for lost equipment; the lower court found Peabody not negligent (without addressing whether Threadgill was negligent) but still held Peabody liable for breach of contract based on the trade custom, and Peabody appealed.