Akron Milk Producers,. Inc. v. Lawson Milk Co.

147 N.E.2d 612, 147 N.E.2d 512, 1958 Ohio Misc. LEXIS 371, 77 Ohio Law. Abs. 275, 167 Ohio St. 244, 75 A.L.R. 2d 103, 4 Ohio Op. 2d 291
CourtSummit County Court of Common Pleas
DecidedJanuary 2, 1958
DocketNo. 209989
StatusPublished
Cited by5 cases

This text of 147 N.E.2d 612 (Akron Milk Producers,. Inc. v. Lawson Milk Co.) is published on Counsel Stack Legal Research, covering Summit County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akron Milk Producers,. Inc. v. Lawson Milk Co., 147 N.E.2d 612, 147 N.E.2d 512, 1958 Ohio Misc. LEXIS 371, 77 Ohio Law. Abs. 275, 167 Ohio St. 244, 75 A.L.R. 2d 103, 4 Ohio Op. 2d 291 (Ohio Super. Ct. 1958).

Opinion

OPINION

By CLANDE V. D. EMMONS, J.:

This action is one for injunctive relief primarily, wherein the Akron Milk Producers, Inc., hereinafter referred to as the Association, is asking the Court in its prayer to permanently enjoin the defendant, The Lawson Milk Company, hereinafter referred to as Lawson, from:—

1. Engaging in, authorizing, encouraging or approving any conduct designed to induce, or attempting to induce any producer members of the Plaintiff Association to breach, cancel or terminate their marketing agreements with the Plaintiff.

2. From authorizing, encouraging or instructing any of its agents, and in particular those persons engaged in hauling milk from the farms of the individual producer members of the Plaintiff Association to Defendant’s plant, or other designated delivery stations for delivery to Defendant, to cease hauling milk to said points by reason of the membership of such individual producer members in the Plaintiff Association and from interfering in any way or manner with the orderly transportation of milk of the farms of individual producer members of the Plaintiff to the plant or designated stations of the Defendant.

3. From engaging, authorizing, encouraging or approving any refusal to purchase milk produced by producer members of Plaintiff Asso[277]*277ciation for the reason that such producers are members of the Plaintiff Association.

Considering part 1 of the prayer the Court finds that there was an attempt made by agents and representatives of Lawson to get certain member producers to breach their contract with the Association. This is evidenced by Plaintiff’s Exhibits 21, 22, 23, and 24, which consisted of letters written to the Association by members thereof, induced by Lawson, withdrawing or resigning from membership in the Association not in accordance with the terms of the contract between the producers and the Association. The pertinent part of the contract is as follows:—

“Ninth: This contract, if signed by both parties hereto, shall become effective as of the date signed by the producer and shall remain in effect until cancelled as follows:—

“After the first six months, either party desiring to cancel shall serve notice on the other not more than 60 days nor less than 30 days before the end of any subsequent six months of his or its desire to cancel * * * The cancellation shall then be effective on the six months or yearly anniversary of the date of the signing 4 * *”

The letters of withdrawal or resignation were dated the latter part of December 1955, and they were not such as were requests for cancellation within the terms of the Association-Producer contract.

An attempt to induce or to cause a breach of contract establishes prima facie evidence of legal malice and this must be overcome by evidence proving justification which was not forth coming in this case.

While the Association did not accept these withdrawals or resignations because the producers were trying to breach their contract, nevertheless the attempt to get these producers to breach their contract with the Association was induced by Lawson or its representatives. (See 10 Ohio Circuit Court 558, Dannerberg v. Ashley.) This was not an attempt to induce the member producers to terminate their contracts legally, but to breach them.

Since under the existing circumstances there was no justification of such action, the Court is of the opinion that Lawson should be enjoined from engaging in, authorizing, encouraging, or approving any conduct designed to induce or attempting to induce any producer member of the Association to breach their contract with the Association.

Concerning the question of termination of contract, the Court is impressed that there is ample proof to the effect that Lawson’s representatives attempted to induce and persuade the member producers to legally terminate their contract with the Association.

The Court is aware that under the Federal and State laws .Agricultural Cooperatives such as the Plaintiff Association are favored entities, however excepting for a few exceptions, these bodies or organizations are amenable to the samé general laws as are individuals and corporations.

75 Oh Ap 25, Leibovitz v. Central National Bank (cited by the Association). This is the case of a third party being an intermeddler and one who had no concern as to the parties involved and the syllabus is as follows:—

[278]*278“Where one wrongfully interferes with the performance of an executory contract, which would be carried out except for such interference, he is liable to a party to such contract for damages sustained as the result of such interference.”

The turning point in this case rested on the word “wrongfully.” Without specifically stating so, the Court recognized that justification was a defense to an action for business interference. This recognized defense of justification was relied on in Horth v. American Aggregate Corp., 20 O. O. 76:—

Syllabus 1:—

“It is not a malicious inducement of a breach of contract for a person to enter into an agreement with another person with knowledge that such other person has a contract with a third person covering the same subject matter and that both contracts can not be performed.”

This would appear to be contrary to the decision in the Leibovitz case until we discover the “nubbin” in this case, for the Court on page 82 made this statement:

“It is not unlawful for one, by fair and lawful persuasion, to interfere with contracts of another where made with honest intent to improve one’s own business.”

E. R. Squibb & Sons v. Ira J. Shapiro, Inc. — 64 N. Y. Supplement 2nd, 368, Syllabus 2:—

“A corporation which had exclusive agency contract for the sale of manufacturers product under contract, providing that appointment may be terminated at any time by manufacturer or corporation on ten days notice in writing to the other, was not entitled to recover damages from those who allegedly induced the manufacturer to terminate the contract in accordance with the terms of the contract.”

It is claimed by the Association that the actions of Lawson in attempting or causing termination of contracts between producers and Association were prompted solely through a desire to injure the Association. This is not borne out by the testimony for in fact it was Lawson’s competitive interest that was the prompting factor and not primarily a motivation brought about through hatred, ill will or a desire to injure.

Re-instatement of the Law of Torts — page 77 (H):—

“The privilege stated in this section is given to advance the actor’s competitive interest * * * If his conduct is directed, at least in part to that end, it is immaterial that he is also motivated by other impulses as for example, hatred or a desire for revenge.”

Representatives of the Association admitted that they were instrumental in getting independent producers to terminate their contract with Lawson and then obtain them as members of the Association — this is the same thing the Association is complaining about as concerns Lawson.

In Fort v. People ex rel Cooperative Farmers Exchange, 256 Pacific Reporter, page 325, the Court noted on pages 328 and 329:—

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147 N.E.2d 612, 147 N.E.2d 512, 1958 Ohio Misc. LEXIS 371, 77 Ohio Law. Abs. 275, 167 Ohio St. 244, 75 A.L.R. 2d 103, 4 Ohio Op. 2d 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akron-milk-producers-inc-v-lawson-milk-co-ohctcomplsummit-1958.