Carruthers v. McMurray

39 N.W. 255, 75 Iowa 173, 1888 Iowa Sup. LEXIS 294
CourtSupreme Court of Iowa
DecidedSeptember 8, 1888
StatusPublished
Cited by7 cases

This text of 39 N.W. 255 (Carruthers v. McMurray) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carruthers v. McMurray, 39 N.W. 255, 75 Iowa 173, 1888 Iowa Sup. LEXIS 294 (iowa 1888).

Opinion

Reed, J.

— For many years prior to the fifth of July', 1883, the defendant had been engaged in business [175]*175as a general merchant at Brooklyn. He carried a large stock, and appears to have done an extensive business. On that day he sold his entire stock of goods to plaintiffs, and transferred to them the lease of the building in which the business had been carried on, and they thereafter conducted the same character of business at the same place. It is alleged in the petition that during the negotiations he represented and promised that he would not again engage in that kind of business at Brooklyn, and that he would not assist either of his sons in doing so, but that, in violation of that promise, he had advanced to one of his sons the sum of twenty-five hundred dollars to enable him to engage in the same business at Brooklyn, and that many of the customers who had patronized the store when defendant kept it, and who continued to patronize it after the sale to plaintiffs, had withdrawn their patronage, and had become patrons of the store kept by defendant’s son. Defendant admitted the sale' of the goods, but alleged that the contract was in writing, and denied that the sale included the good-will of the business, or that he had bound himself not to engage or assist his sons in engaging in the same business at Brooklyn. There is a decided conflict in the evidence given on the trial on the question as to whether there was a promise by defendant during the negotiations that he would not again engage in the business, or assist his sons in doing so. Both members of plaintiffs’ firm testified positively that the defendant frequently made that promise while the negotiation was in progress, while defendant testified with equal positiveness that the subject was not mentioned until after the sale was fully completed, and that he then did no more than to assure them that it was his intention not to engage in the business, either at Brooklyn, or elsewhere, for one year. The jury were required specially to determine tlie question, and their special verdict was to the effect that defendant did not make the promise alleged during the negotiations. It was admitted by both parties that a written memorandum was signed when the agreement was entered [176]*176into. The writing, however, had been lost, and conld not be produced upon the trial. The parol evidence as to its contents tended to prove that it was a contract only for the sale of the goods and fixtures in the store.

1. Sale of stock with good will: breach: evidence. I. On the tidal plaintiffs offered to prove that they would not have made the purchase of the goods except for the agreement by defendant that he would not engage or assist his sons in engaging in the business in Brooklyn, but on defendant’s objection the evidence was excluded. That ruling is assigned as error. We think it is correct. If a stipulation to that effect was a condition of the contract, as plaintiffs claim it was, they were entitled to recover for its breach, regardless of whether it was the moving or principal inducement for them to enter into the agreement or not. According to their claim, the “good-will” of the business was one of the subjects of the contract. They purchased and paid for it in the deal, and if they proved that averment they were as certainly entitled to recover as they would have been if there had been a failure to deliver any part of the tangible property which was the subject of the sale. It was immaterial, therefore, to inquire specially whether that condition was an inducement to the contract.

2. Instructions: omission cured by special verdict. II. The district court instructed the jury that, if the parties treated the written memorandum as the evidence of their contract, its , ,. . . -, languaSe> as shown by the parol evidence, would be the exclusive evidence of their ... . agreement up to the time it was signed. It was not claimed that the instructions do not correctly state the general rule as to inadmissibility of parol evidence to vary the terms of a written instrument. But the contention was that if the contract, as entered into by the parties, related to two subjects, viz., the stock of goods and the good-will of the business, and the memorandum covered but one of these subjects, the rule would not be infringed by the admission of parol evidence of the contract as to the other. It is true that an [177]*177exception to the general rule arises w^lien “the original contract was verbal and entire, and a part only oí it was reduced to writing.” 1 Greenl. Ev. sec. 284a. But in view of the special verdict, which determines that the original contract did not include the alleged condition, it cannot be material to inquire whether the case, if the allegation had been proven, would have fallen within the exception or been governed by the rule. With that finding the question is a mere abstraction, and very clearly plaintiffs sustained no prejudice from the failure of the court to submit it to the jury, even if it should be admitted that, as the case stood when it went to the jury, they were entitled to have it submitted.

3. Contract: parol agreement subsequent to writing: consideration III. The court also instructed that if defendant did not make the alleged promise pending the negotiations for the sale of the goods, but did make it after the sale was completed, and after the written memorandum was signed and delivered, it would not, unless supported by some new consideration, amount to a contract, and an action would not lie for the violation of it. The instruction is right. ■ The promise, if made at that time, was not a mere modification of the written contract, but related to another subject, and, if binding, imposed new obligations and rights upon the parties. It was, in effect, a new and distinct agreement, and, to be binding as a contract, all the elements of a contract must have been included in it.

4. Evidence: exclusion: error cured by special verdict. IY. Defendant introduced sixty-four witnesses,' who testified that prior to the sale to plaintiffs they had been patrons of the store, and they continued to patronize it up to the time when defendant’s son commenced business, when they transferred their patronage to him; and, being asked for the reason of such change, stated that it was because of their dissatisfaction with the manner in which plaintiffs conducted the business and kept their accounts. Counsel for plaiiitiffs proposed to cross-examine each of the witnesses [178]*178fully as to the particular matters or transactions out of which he claimed his dissatisfaction arose, for the purpose, as he stated, of showing that he had no real ground of dissatisfaction. But the court, on defendant’s objection, refused to permit that question to be gone into. In view of the special verdict, the question arising on this assignment is also a mere abstraction. The testimony of the witnesses related solely to the measure of plaintiffs’ recovery in case they had succeeded in establishing a right of recovery. But the special verdict determines that they have no cause of action.

5. Practice: argument to jury: number of counsel. Y. Two attorneys appeared for plaintiffs in the trial. After the evidence was concluded one of them addressed the jury. In closing his argument he stated to the jury that they woujq then be addressed by counsel for the defendant, after which his associate would address them further on behalf of plaintiffs. The court then adjourned until the next day.

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Bluebook (online)
39 N.W. 255, 75 Iowa 173, 1888 Iowa Sup. LEXIS 294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carruthers-v-mcmurray-iowa-1888.