Barrone v. Moseley Bros.

137 S.W. 1048, 144 Ky. 294, 1911 Ky. LEXIS 578
CourtCourt of Appeals of Kentucky
DecidedJune 16, 1911
StatusPublished
Cited by5 cases

This text of 137 S.W. 1048 (Barrone v. Moseley Bros.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barrone v. Moseley Bros., 137 S.W. 1048, 144 Ky. 294, 1911 Ky. LEXIS 578 (Ky. Ct. App. 1911).

Opinion

[295]*295Opinion op the Court by

Judge Miller

— Sustaining rule.

' This is a proceeding, by rule, under section 286 of the Civil Code of Practice to punish the appellants, B. J. (“Bert”) Barrone and The Bowling Green Steam Laundry Company, for failing and refusing to obey the order of injunction entered herein on April 25, 1911, by the Judge of the Warren Circuit Court. In 1908 “Bert” Barrone was engaged in the laundry business in Bowling Green. On October 22d of that year, he sold a portion of his laundry business to Moseley Bros., and bound himself and his successors in the business not to engage in the laundrying of shirts, collars and cuffs- in the City of Bowling Green and adjacent territory. He reserved, however, the right to do family washing, and shirts, collars and cuffs sent in from transient guests of hotels, and known as “hotel specials.” The consideration for the contract was $1,600, which included the purchase price of certain machinery which Moseley Bros, bought from Barrone for the laundrying of shirts, collars and cuffs.

“Bert” Barrone had given his note for $7,000, dated in January, 1908, to his brother, J. J. (“Joe”) Barrone, and to secure the payment thereof “Bert” Barrone gave his brother a mortgage upon the laundry property. “Joe” Barrone enforced his mortgage lien at the February term of the court in 1909, and bought in the property; and, in March of that year he organized the appellant corporation, The Bowling Green Steam Laundry Company (hereinafter called the Company), with a capital stock of $8,000, for the purpose of taking over the laundry business of “Bert” Barrone. “Joe” Barrone was a bachelor, and worth perhaps $25,000. In organizing the corporation he gave his brother “Bert” three of the 80 shares of stock; to his brother, R. J. (Raphael) Barrone he gave thirty-five shares of stock; he sold seven shares to his brother-in-law, J. W. Gilbert; and he kept thirty-five shares which he subsequently gave to his mother, Louise Barrone. Shortly thereafter “Joe” Barrone died, in April, 1909. Conceiving that the formation of the company was a mere scheme for the purpose of evading the contract which “Bert” Barrone had made with Moseley Bros., and claiming that the company was doing work of the kind prohibited by the contract, Moseley Bros, brought their suit in the Warren Circuit [296]*296Cour.t against “Bert” Barrone and the company for the purpose of enjoining them from doing the prohibited work. By its judgment of April 25, 1911, the Warren Circuit Court sustained the prayer of Moseley Bros, in the following language:

“The court being advised adjudges that the contract sued on is legal and in full force and effect, and that the defendant, The Bowling Creen Steam Laundry Company, is liable under said contract; that the said organization was organized for the purpose of evading the contract sued on herein, and it is adjudged by the court that the plaintiffs recover of the defendants, B. J. Barrone and The Buwling Creen Steám Laundry Company the sum of two hundred and twenty-five ($225) dollars for damages on account of the breach and violation of said contract with interest at 6 per cent, from date.
“It is further adjudged by the court that the organization and operation of said corporation was done for the purpose of evading the contract sued on herein, of which purpose the organization and stockholders had full knowledge at the time of the organization, and it is, therefore ordered and adjudged by the court that the defendant, B. J. Barrone, be and he is hereby perpetually enjoined and restrained from engaging in the business of laundrying shirts, collars and cuffs in the city of Bowling Creen and the territory adjacent to the city of Bowling Creen, Ky.; this injunction not applying to laundrying shirts, in family washings, nor shirts, collars and cuffs when they shall be sent in from hotels as hotel specials; and it is further ordered and adjudged that the defendant, The Bowling Creen Steam Laundry Co., a corporation, be perpetually enjoined and restrained from engaging in the business of laundrying shirts, collars and cuffs in the City of Bowling Creen, Ky., this injunction not applying to the laundrying , of shirts in family washings nor to shirts, collars and cuffs sent in from hotels and hotel specials, and it' is adjudged that plaintiffs recover of defendants their costs herein expended. To all of which defendants object and except, and pray an appeal to the Court of Appeals, which is granted.”

“Bert” Barrone and the. Company superseded that judgment, but have not filed the record in this court. TJpon motion of Moseley Bros, the supersedeas was discharged by an order of this court on May 24, 1911. Bar[297]*297rone v. Moseley Bros., 143 Ky., 812. Appellants had notice of that order not later than the day after it was entered, and perhaps on the 24th Moseley Bros, have filed affidavits to the effect that “Bert” Barrone and the Company, have not only violated the order of injunction from the day it was entered, April 24, 1911, up to May 24, 1911, when the supersedeas was discharged, hut that they have since continued to violate the injunction by doing the prohibited work, particularly upon May 26th, 27th and 29th. The appellants admit that they have violated the injunction pending the appeal up to the discharge of the supersedeas on May 24th, and several of their customers have filed affidavits showing that appellants did work of the prohibited character on May 26th, 27th and 29th. In his response “Bert” Barrone says that he believed, and was so advised by counsel that the supersedeas suspended the judgment, and that he_ honestly believed that he had the right to do the prohibited work up to May 27th; that on May 27th the stockholders of the Company sold its property and business to Raphael J. Barrone for $6,500 cash, and dissolved the corporation; and, that any business that was done after the 27th was done by Raphael J. Barrone, and not by the appellants. Quite a number of affidavits have been filed to show that the sale to Raphael J. Barrone was in good faith, and that the appellants are in no way responsible for what he may thereafter have done. Raphael J. Barrone was the president of the Company, and its surety upon the supersedeas bond. “Bert” Barrone admits, however, that his brother, Raphael J. Barrone has requested bim to remain temporarily at the laundry for the purpose of giving Raphael some acquaintance and knowledge of the business, and show him how to conduct it; and that he has consented to do so, with the understanding that he will be paid a fair and reasonable wage during the time he shall thus assist his brother at the laundry. It subsequently appeared that he is getting $25 per week, the same salary that was paid him by the Company. He denies, however, that he has had any interest in the laundry, its property or its business, since May 27th. The response of the Company is to the same effect.

It is also insisted that Raphael J. Barrone, the purchaser and present owner of the business, and J. W. Gilbert, a former director of the Company, are guilty of [298]*298contempt for aiding “Bert” Barrone in violating the order, although they are not parties of this appeal. Since, however, .the rule is confined to “Bert” Barrone and the Company, the decision will apply to them only.

This case is very similar, in its controlling facts, to the case of the Kentucky Heating Company v. Louisville Gas Company, 22 Ky. Law Rep., 1140, where this court said:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Karr v. Kentucky State Board of Dental Examiners
469 S.W.2d 545 (Court of Appeals of Kentucky, 1971)
Wormald v. Macy
349 S.W.2d 199 (Court of Appeals of Kentucky, 1961)
Williamson v. City of High Point
200 S.E. 388 (Supreme Court of North Carolina, 1939)
Stratton & Terstegge Co. v. Meriwether
144 S.W. 1083 (Court of Appeals of Kentucky, 1912)
Barrone v. Moseley Bros.
139 S.W. 869 (Court of Appeals of Kentucky, 1911)

Cite This Page — Counsel Stack

Bluebook (online)
137 S.W. 1048, 144 Ky. 294, 1911 Ky. LEXIS 578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barrone-v-moseley-bros-kyctapp-1911.