Delaware Optometric Corporation v. Sherwood

128 A.2d 812, 36 Del. Ch. 223, 1957 Del. LEXIS 75
CourtSupreme Court of Delaware
DecidedJanuary 23, 1957
StatusPublished
Cited by29 cases

This text of 128 A.2d 812 (Delaware Optometric Corporation v. Sherwood) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delaware Optometric Corporation v. Sherwood, 128 A.2d 812, 36 Del. Ch. 223, 1957 Del. LEXIS 75 (Del. 1957).

Opinions

Wolcott, Justice:

This appeal presents the basic question of whether or not licensed optometrists may enjoin the practice of optometry by unlicensed persons. The Vice Chancellor on the motion of the defendants dismissed the complaint at the close of the plaintiffs' proof and from that judgment the plaintiffs have appealed.

The plaintiffs are a corporation containing as its members twenty-four out of a total of twenty-seven practicing optometrists in the State of Delaware and three individual licensed optometrists.

[225]*225The defendants are opticians and are not licensed optometrists. They concede for the purposes of this appeal that it may be assumed that they have been fitting contact lenses, an act of optometry, for which they are not licensed.

No showing was made at the trial of any request to the Attorney General to invoke the criminal sanctions of the Delaware Optometry statutes against the defendants. Nor was there any evidence of special damage to the plaintiffs’ business by reason of the complained of acts.

The Vice Chancellor held that the Delaware Optometry Law was enacted to protect the public from incompetence and did not grant an exclusive franchise to licensed optometrists enforceable by injunction. He also held that the acts of the defendants did not constitute a public nuisance and that, under the circumstances, the Court of Chancery was without jurisdiction.

The Delaware Optometry Law, 24 Del.C., §§ 2101-2119, defines the practice of optometry and creates a Board of Examiners in Optometry. It authorizes the Board of Examiners to make rules and regulations for the enforcement of the law; to conduct examinations of persons seeking to be licensed as optometrists, and to register and certify successful applicants. Upon the presentation of the Board’s certificate to it the State Tax Department is required to issue a license to practice optometry upon payment of the required fee.

The Delaware Optometry Law also sets up standards for licensed optometrists and prohibits the practice of optometry (which includes the acts the defendants herein are specifically charged with) by persons not found qualified by the Board. The law provides that for each violation the violator shall be subjected to a fine, and directs the Attorney General to prosecute every case of such an offense whenever it is called to his attention.

The plaintiffs argue that the Delaware Optometry Law confers upon licensed optometrists a franchise which is a property right and which may be protected by injunctive process at the suit of a licensed optometrist. Fundamentally, the argument comes down to a contention that the statute creates a monopoly and that the licensed op[226]*226tometrists are entitled to be free from competition from unlicensed practitioners.

Whether or not such a franchise has been granted depends fundamentally upon the construction of the statute itself. It must appear that one of the statutory purposes is to protect the licensee from unfair competition by non-licensees. 3 Restatement of Torts, § 710. If, however, the statute is designed primarily to protect the public against incompetent persons who, purporting to practice optometry, might thereby adversely affect the health or physical comfort of the public, it ordinarily does not grant a franchise to licensees to be protected against the competition of unlicensed persons. Mac-Beth v. Gerber’s, Inc., 72 R.I. 102, 48 A.2d 366; New Hampshire Board of Registration, etc. v. Scott Jewelry Co., 90 N.H. 368, 9 A.2d 513. The question in all such cases is one of determining the fundamental meaning and purpose of the statute.

The Delaware Optometry Law sets up certain standards which shall be met by all applicants for licenses to practice optometry. It authorizes the Board to examine such applicants of their fitness and requires the State Tax Department to license a certified applicant. The practice of optometry by an unlicensed person by § 2119 is made a criminal offense and requires the Attorney General to “prosecute every case to final judgment” when his attention has been called to a violation of the statute.

It is apparent to us that, reading the Delaware Optometry Law as a whole, it was enacted for the protection of the health of the general public from the incompetent practice of optometry. In order to accomplish the enforcement of the purpose the General Assembly provided the remedy of a criminal prosecution, with the unusual proviso that the Attorney General shall prosecute to final judgment, thus attempting at least to take from the chief prosecuting officer of the State his prerogative of deciding in his sole discretion whether or not to present an indictment.

We can find no provision in the statute which can remotely be considered as creating a property right in licensed optometrists to be free from competition from unlicensed persons. In [227]*227the absence of such a statutory grant, individual licensees may not prevent competition by enjoining the practice by unlicensed persons. The remedy for enforcement of the statute lies in the criminal courts. MacBeth v. Gerber’s, Inc., supra; New Hampshire Bd. of Registration, etc. v. Scott Jewelry Co., supra; Mosig v. Jersey Chiropodists, Inc., 122 N.J.Eq. 382, 194 A. 248; People ex rel. v. Universal Chiropractors Ass’n, 302 Ill. 228, 134 N.E. 4; State v. Maltby, 108 Neb. 578, 188 N.W. 175; Drummond v. Rowe, 155 Va. 725, 156 S.E. 442.

The plaintiffs cite numerous decisions from other states in support of their position. Many of the cases cited are distinguishable from the ones before us. It would, however, serve no useful purpose to discuss them. Certain of them, however, notably Ezell v. Ritholz, 188 S.C. 39, 198 S.E. 419, and Seifert v. Buhl Optical Co., 276 Mich. 692, 268 N.W. 784, support the plaintiffs’ position. It will suffice to say that we have read this line of decisions, do not agree with them, and, accordingly, decline to follow them. The plaintiffs also stress Frost v. Corporation Commission, 278 U.S. 515, 49 S.Ct. 235, 73 L.Ed. 483. That case, however, dealt with the right of the holder of a permit to operate a cotton gin within certain geographic limits to enjoin the operation of such a gin by the non-holder of a permit. The case is obviously not in point. Unlicensed competition which directly infringed on the plaintiffs’ exercise of a profitable personal grant under state authority was involved.

It is to be noted that there is no proof in the record before us that the acts of the defendants in any way resulted in actual damage to the profits derived by the plaintiffs in the exercise of their licenses. Some of the cases cited by plaintiffs contained this additional element. Whether the addition of proof of direct injury to the business of a licensee would change the result, we do not have to decide. The point is not before us.

The Vice Chancellor found as a fact that the activities of the defendants did not constitute a public nuisance and as such enjoin-able. The record supports this finding. Even if the opposite had been true, however, the abatement of a public nuisance, in the absence of [228]*228a showing of direct and special injury to the plaintiff, must be at the suit of the Attorney General who is not a party to' this cause.

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Bluebook (online)
128 A.2d 812, 36 Del. Ch. 223, 1957 Del. LEXIS 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delaware-optometric-corporation-v-sherwood-del-1957.