Crump v. Ligon

84 S.W. 250, 37 Tex. Civ. App. 172, 1904 Tex. App. LEXIS 41
CourtCourt of Appeals of Texas
DecidedNovember 16, 1904
StatusPublished
Cited by7 cases

This text of 84 S.W. 250 (Crump v. Ligon) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crump v. Ligon, 84 S.W. 250, 37 Tex. Civ. App. 172, 1904 Tex. App. LEXIS 41 (Tex. Ct. App. 1904).

Opinion

*174 FISHER, Chief Justice.

This is an injunction suit and for damages, to restrain appellant from engaging in the drug business at Lott, Texas, in violation of an agreement not to there engage in business at that point, in consideration of the purchase by appellee of appellant’s interest in a partnership drug business with the plaintiff, and for damages for breach of such contract.

The petition was filed on June 23, 1903, and alleged damages for the breach of the contract at $75 a month from the 10th day of January, 1903. The case was tried on the 25th day of January, 1904, and a ver-, diet and judgment were rendered against the appellant in plaintiff’s favor for the sum of $15 damages, and enjoining the appellant from the prosecution of the business in the town of Lott so long as the appellee continued in the drug business.

The petition avers that the appellant and appellee were partners in a , large and lucrative drug business in the town of Lott, and that on the 29th of June, 1899, they entered into a contract, by the terms of which plaintiff purchased from defendant and defendant sold to plaintiff his undivided half interest in the partnership business and its assets, the plaintiff paying therefor the sum of $800 cash, and assuming the payment of all outstanding indebtedness of said partnership, amounting in the aggregate to $250, which said indebtedness plaintiff has since fully paid off and discharged; that as an inducement to plaintiff to purchase the defendant’s interest, he represented to plaintiff that it was his intention to retire from the drug business at Lott, and to remain permanently out of said business at said point, and that if the plaintiff would purchase his interest in said business, that defendant would convey to him, the plaintiff, his good will in the business at said point, as well as the good will of said business, and that he, defendant, would permanently retire from the retail drug business at said point and leave plaintiff without competition from defendant, together with his good will and the good will of said business; and that thereupon a written contract was executed upon the basis of this agreement, whereby the 'defendant obligated himself that he would not engage, nor would he hire, in the drug business for any other drug firm in the town of Lott, so long as the plaintiff was in business at that point; and the plaintiff effected the trade and the contract as above stated in consideration that the defendant would retire from the said business and not engage in the drug business so long as the plaintiff remained in that business in the town of Lott.

The petition then proceeds to allege a breach of this contract,' and the evidence .shows that the defendant did violate it by engaging in the drug business in the town of Lott, while and during the time that the plaintiff was there engaged in the same business.

The evidence in the record supports the averments of the petition. The appellant demurred to the plaintiff’s petition on the ground that the contract pleaded was in restraint of trade, and was unlimited both as to time and place; and therefore the contract'was void. The court overruled these demurrers. It is contended under the assignments of errors that present this question that the contract was void, both at common law and under the antitrust statute of 1903.

*175 We can not agree with appellant in this contention. The contract pleaded and proven was not unlimited as to time and place, and is of such reasonable character within its terms that it is not of a nature as is denounced by the common law. The cases cited in the appellee’s brief on this question clearly support this conclusion. And we are also of the opinion that it is not affected 'by the antitrust statutes existing prior to the Act of 1903, if it comes within the meaning of this statute, which we do not believe to be the case. Gates v. Hooper, 90 Texas, 564. But, however, we are of the opinion that the statute of 1903 can not be held to apply to the contract in question. The contract in question was entered into several years prior to the passage of the Act of 1903, and at that time it had become executed. It is not believed that it was the intention of the Legislature to give .the Act of 1903 a retroactive effect, so as to affect contracts previously entered into and executed, and if such was its purpose, it would be in violation of those provisions of the Constitution that prohibit legislation impairing the obligations of a valid contract. The contract was legal when entered into, and could be subject to legislation impairing its effect.

The fourth and fifth assignments of error complain of the charge of the court on the measure of damages. We are of the opinion that the charge substantially submitted the correct rule upon this subject. But, however, if we are mistaken in this view, it is clear from the amount involved, and the evidence in the record on the subject of damages, that the verdict and judgment should be considered as merely for nominal damages. If the contract was breached, the plaintiff was certainly entitled to nominal damages, which the court instructed the jury they should find merely from the breach of the contract. This was correct. Viewing the verdict and judgment as being in compliance with this instruction, we think that if the court is wrong as to the issue of actual damages, that no harm has resulted to the appellant and no reversible error as to this question is shown.

What we have just said in effect disposes of the eleventh assignment of error. If the court erred in admitting the testimony of Ligón as to the amount of business and profits lost by him, by reason of the defendant’s engaging in the business in breach of the contract, it is harmless error, for the reason that the jury did not award any actual damages; but, as said before, the verdict and judgment is practically one for nominal damages. Consequently it is clear that' in arriving at a verdict the jury did not consider the testimony that was objected to. But we are not prepared to say that the evidence was not admissible. The loss of profits in the business, by reason of the defendant’s breach of the contract, we think was a proper element of damage to be considered by the jury. Ligón testified as to facts which showed a familiarity with the subject about which he was testifying; and his estimate of the profits that were lost by reason of the defendant’s engaging in business we think was admissible.

The twelfth assignment of error complains that the court erred in its main charge in failing to submit to the jury defendant’s theory of the case as presented by the evidence on the question of failure or want of consideration with reference to the contract introduced by the plain *176 tiff. We are of the opinion that the charge of the court did submit this question.

The remaining assignments of érror complain of the refusal of the court to submit certain defenses raised by the pleadings and the evidence of the appellant. The question that arises under these assignments is based upon the following averments of the defendant’s answer:

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Bluebook (online)
84 S.W. 250, 37 Tex. Civ. App. 172, 1904 Tex. App. LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crump-v-ligon-texapp-1904.