Cust v. Item Co.

8 So. 2d 361, 200 La. 515, 1942 La. LEXIS 1217
CourtSupreme Court of Louisiana
DecidedApril 27, 1942
DocketNo. 36269.
StatusPublished
Cited by41 cases

This text of 8 So. 2d 361 (Cust v. Item Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cust v. Item Co., 8 So. 2d 361, 200 La. 515, 1942 La. LEXIS 1217 (La. 1942).

Opinion

O’NIELL, Chief Justice.

The plaintiff is appealing from a judgment dismissing her suit on an exception of no cause or right of action. The suit is for damages for an alleged breach of contract by a third party, Mrs. Concldin C. Barry. The plaintiff avers that an employee of the defendant, Item Company, acting within the scope of his employment, induced Mrs. Barry to breach the contract. And for that Mrs. Cust is demanding of the Item Company $5,646 damages.

The right of action of course depends upon the following facts recited in Mrs. Cust’s petition. She resides in Danville, Virginia. In January 1939, she organized in New Orleans an enterprise called the Hospitality and Service Bureau, the business of which was the bringing of customers to the bureau’s clients or patrons from among the newcomers in the city. Mrs. Cust avers that the business commenced operating' on March 1, 1939, under a written contract with Mrs. Barry, as follows:

“In opening the Hospitality and Service Bureau of New Orleans, La., the two of us, Mrs. Lucie P. Cust and Mrs. Concklin C. Barry, agree to. give each other one month notice in case either of us wishes to sever connection with the other one.

“We also agree to share equally the expenses, and the profits of the business; to divide equally the profit after expenses have been deducted.

*520 “Since Mrs. Cust created and developed the project, and is sharing it equally with a partner, we both agree that she have protection, in this way, for a period of three years after connection is severed, that a partner agrees not to enter into any business similar to that taught her by Mrs. Cust. This is to avoid competition.

“(Signed) Lucie P. Cust

“(Signed) Concklin C. Barry

“Date of opening: March 1st, 1939.”

Mrs. Cust avers that Mrs. Barry had no previous knowledge of the hospitality and service business, and that she, Mrs. Cust, came to New Orleans and for a period of about two months immediately preceding March 1, 1939, trained and instructed Mrs. Barry in the manner of conducting the business, giving her the trade secrets and the benefit of Mrs. Cust’s knowledge and experience with which, as she says, she had conducted such a business successfully for several years. She avers that for some time before February 1, 1940, and during all of February and March, Mrs. Barry contacted the patrons and prospects of the bureau and induced them to transfer their business to a similar enterprise to be organized by the Item Company; that on some of these occasions Mrs. Barry was accompanied by an employee of the Item Company, acting within the scope of his authority, and that these inducements, by Mrs. Barry either alone or in company with the agent or agents of the Item Company, were made with the knowledge and consent of the Item Company and as the result of a conspiracy between' the Item Company and Mrs. Barry to establish a competing business and obtain the plaintiff’s patrons or clients for the contemplated new enterprise. The plaintiff avers that Mrs. Barry notified her on or about February 1, 1940, that at the end of the month she would sever her business connection with the plaintiff; that thereafter Mrs. Barry continued her solicitations for the Item Company, and at a subsequent date was employed by the company in its hospitality and service department. Mrs. Cust avers that she is informed that an employee of the Item Company brought Mrs. Barry to another employee of the company and proposed that Mrs. Barry should be employed by the company to establish a hospitality service department for the Item Company, like that which she, Mrs. Cust, had organized. She avers that at a date unknown to her and on terms and conditions impossible to ascertain, but while Mrs. Barry was under contract with her, Mrs. Barry solicited the patrons and clients of Mrs. Cust on behalf of the Item Company, being sometimes accompanied by an employee of- the Item Company; and that subsequently the Item Company established and conducted a hospitality service department and employed Mrs. Barry there, on a basis unknown to Mrs. Cust. She avers that the Item Company had full knowledge of the terms and conditions of the written agreement between her and Mrs. Barry, and, in the alternative, that, if the Item Company did not have knowledge of Mrs. Barry’s contract with the plaintiff, the company ratified the acts of its agents by establishing and operating the competitive business. Mrs. Cust names six New *522 Orleans merchants who, she alleges, were induced by employees of the Item Company, with the aid of Mrs. Barry, to discontinue patronizing Mrs. Cust’s firm’s Hospitality and Service Bureau, and to transfer their business or patronage to the Item Company; and that, but for this interference by the Item Company and Mrs. Barry, these patrons would have continued patronizing the plaintiff’s bureau “for at least two years”. Mrs. Cust avers that four of the six patrons whom she names had been paying her firm $20 per month each, that one of them had been paying $15 per month and that the other had been paying $10 per month, making a total of $105 per month; that the contracts with these patrons were for a definite period; that, at their termination the patrons continued to accept the services; and that, but for the acts of the Item Company and Mrs. Barry, “these clients would have continued as such for at least two years.” For that the plaintiff claims 24 times $105, or $2,520 damages. In addition, she claims that she suffered damages by being compelled, by the acts which she complains of, to return to New Orleans from her home in Danville, Virginia, and to remain in New Orleans four and a half months in order to revive and rearrange the Hospitality and Service Bureau, and to train a substitute to take the place of Mrs. Barry; all of which, she avers, caused her to incur traveling expenses to the extent of $76, and living expenses in New Orleans to the amount of $450. And she avers that all of this caused her to become ill and to suffer “a complete nervous and physical collapse”, necessitating her being confined in a hospital in New Orleans for five days, at a cost of $35, and to require medical treatment afterwards at her home in Danville, Virginia, for several weeks, with a kidney ailment; all of which she says is attributable directly to the excess of work, worry and anxiety in the matter of reviving and rearranging the Hospitality & Service Bureau; and for that she claims $50 for medical expenses, $35 for hospital bills, $15 for medicines, and $2,500 for mental pain and suffering, for time expended, and for the strain and anxiety, “caused by the necessity of reviving her business and training a new partner”.

The several items of damages claimed by the plaintiff resulted from causes which we consider too remote from the alleged inducing of Mrs. Barry to breach her contract. The only loss that is said to have resulted directly from the alleged breach of contract is the alleged loss of the six customers whose patronage is said to have been worth $105 per month. Even as to these damages there is no fact alleged that would justify the plaintiff’s conclusion that the six customers would have continued patronizing her for two years, or for any definite period, if Mrs. Barry had not breached her contract.

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

Related

Chrysler Credit Corp. v. Whitney National Bank
51 F.3d 553 (Fifth Circuit, 1995)
First Downtown Dev. v. Cimochowski
613 So. 2d 671 (Louisiana Court of Appeal, 1993)
Hawthorn, Waymouth & Carroll v. Johnson
611 So. 2d 645 (Louisiana Court of Appeal, 1992)
Compadres, Inc. v. Johnson Oil and Gas Corp.
547 So. 2d 382 (Louisiana Court of Appeal, 1989)
9 to 5 Fashions, Inc. v. Spurney
538 So. 2d 228 (Supreme Court of Louisiana, 1989)
CAJUN ELEC. POWER CO-OP., INC. v. Owens-Corning Fiberglass Corp.
528 So. 2d 716 (Louisiana Court of Appeal, 1988)
New Orleans v. United Gas Pipe Line Co.
517 So. 2d 145 (Louisiana Court of Appeal, 1987)
Gunter v. Marine Offshore Catering Co., Inc.
617 F. Supp. 1018 (W.D. Louisiana, 1985)
D'Antoni v. D'Antoni
432 So. 2d 926 (Louisiana Court of Appeal, 1983)
Winston v. Bourgeois, Bennett, Thokey and Hickey
432 So. 2d 936 (Louisiana Court of Appeal, 1983)
Moss v. Guarisco
409 So. 2d 323 (Louisiana Court of Appeal, 1981)
Ohlhausen v. Brown
372 So. 2d 787 (Louisiana Court of Appeal, 1979)
Kimble v. D. J. McDuffy, Inc.
445 F. Supp. 269 (E.D. Louisiana, 1978)
Re-Steel, Inc. v. Haas & Haynie-Tudor Construction Co.
344 So. 2d 696 (Louisiana Court of Appeal, 1977)
Hamilton v. Canal Barge Company, Inc.
395 F. Supp. 978 (E.D. Louisiana, 1975)
Roussel Pump & Electric Co. v. Sanderson
216 So. 2d 650 (Louisiana Court of Appeal, 1968)
Shaw v. New York Fire & Marine Underwriters, Inc.
212 So. 2d 416 (Supreme Court of Louisiana, 1968)
Central La. Elec. Co. v. Pointe Coupee Elec. Mem. Corp.
182 So. 2d 752 (Louisiana Court of Appeal, 1966)
Delta Finance Company of Louisiana v. Graves
180 So. 2d 85 (Louisiana Court of Appeal, 1965)
Smith v. Southern Farm Bureau Casualty Insurance
174 So. 2d 122 (Supreme Court of Louisiana, 1965)

Cite This Page — Counsel Stack

Bluebook (online)
8 So. 2d 361, 200 La. 515, 1942 La. LEXIS 1217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cust-v-item-co-la-1942.