Deon v. Kirby Lumber Co.

111 So. 55, 162 La. 671, 52 A.L.R. 1023, 1926 La. LEXIS 2308
CourtSupreme Court of Louisiana
DecidedNovember 29, 1926
DocketNo. 28297.
StatusPublished
Cited by11 cases

This text of 111 So. 55 (Deon v. Kirby Lumber 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
Deon v. Kirby Lumber Co., 111 So. 55, 162 La. 671, 52 A.L.R. 1023, 1926 La. LEXIS 2308 (La. 1926).

Opinion

^ ROGERS, J.

.This is a suit for the recovery of damages for the alleged violation of the provisions of Act 11 of Ex. Sess. 1915 and, alternatively, under Civ. Code, art. 2315. defendants’ exceptions of no cause of action were overruled, and they appealed. The appeals are permissible, under section 13 of the statute/)

Plaintiff, in his petition, sets forth, substantially, that the Kirby Lumber Company, one of the defendants, is a Texas corporation, operating a large sawmill plant and general merchandise store near the plant, at Merry-ville, in the parish of Beauregard. That O. É. Johnson, the other defendant, is the general manager in charge of its sawmill and store, with power to employ and discharge employees and to direct all activities, of whatsoever nature, connected with or incidental to the operation of the company.

It is alleged that some time prior to May 27, 1926, the petitioner purchased a lot of ground near the sawmill plant, erected a building thereon, stocked it with merchandise, and then opened it as a general’ mercantile store for business with the public.

It is alleged that a few days prior to the date on which petitioner opened his store for business, the defendant company, acting by and through its general manager and also through various foremen in charge of its various departments, and the defendant O. E. Johnson, individually, in a mass meeting cailed and held for the purpose, publicly notified and caused to be notified all the employees of the company that they were pro *675 hibited from purchasing any goods or wares at petitioner’s store, and, further, warned said employees that any of them who dealt or traded with petitioner or who visited his store or family would be immediately discharged.

It is .alleged that the defendant company did, in fact at various times discharge a number of its employees for trading with and visiting petitioner’s store or family; that it reduced the wages of other employees for so doing, and threatened to discharge a number of others if they persisted in dealing with petitioner.

It is alleged that the acts of the defendants amounted to and were a conspiracy and contract to boycott petitioner,^were -in restraint of trade on the part of the company’s employees, and in violation of Act 11 of 1915. That said acts were done for the purpose of and succeeded in suppressing competition and in monopolizing the business of the locality, by forcing the employees of the defendant company to purchase articles of necessity and commerce exclusively from the company’s commissary.

It is alleged that the conduct, threats, commands, acts of coercion, and intimidation set forth were done by and at the direction of the said Johnson in the course of his employment, and by the said defendant company, and with the full knowledge, consent, and active assistance of the company.

It is alleged that, as a result of defendants’ actions, petitioner’s business was totally ruined as it was entirely dependent upon the trade of the employees of the lumber company.

[it is alleged that the acts of defendants, as set forth in the petition, have caused petitioner great annoyance and humiliation by reason of the notoriety thereby obtained in the neighborhood and the practical ostracism of himself and his family from the society of their friends, neighbors, and acquaintances. In the alternative, petitioner averred that, if the acts complained of were not committed for the purpose of monopolizing the business and trade of the company’s employees and did not amount to a conspiracy in restraint of trade, then the said acts were done with the wanton and malicious intent and desire on the part of the defendants to injure him in his business, social standing, property rights, and character. • • ■

The petition contains the necessary allegations as to the damages sustained, and the prayer is in accordance with the averments.

Plaintiff’s contention, based ou the. facts alleged, is that three separate and distinct causes of action are set out in his petition, viz.:

First. That the defendants conspired to restrain trade, in violation of section 1 of Act 11 of 1915.

Second. That defendants’ acts were done for the purpose of and succeeded in suppressing competition in handling the necessities of life, thus creating a monopoly in such commodities, in violation of section 2 of Act 11 of 1915.

Third. In the alternative, that defendants’ acts were wanton and malicious and were committed for the purpose of injuring petitioner and to ruin his business, character, and social standing?^

The court below overruled defendants’ ex- - ceptions, holding that plaintiff’s petition showed a cause of action under 'the first ground of his contention. The court did not i:>ass upon plaintiff’s other alleged causes of action.

Act 11 of 1915 was enacted to protect trade and commerce against unlawful restraints, combinations, conspiracies, and monopolies; to provide remedies against, punishment for, and to allow a cause of action in favor of persons injured by such acts. * • i

1 Section 1 of the statute provides, in part:

“That every contract, combination in the form of trust or otherwise, or conspiracy, in restraint *677 of trade or commerce in tlie state of Louisiana is hereby declared to be illegal.”

Section 2 of the legislative act provides, in part:

“That every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons to monopolize any part of the trade or commerce within the state of Louisiana, shall be deemed guilty of a misdemeanor,” etc.

The question before us under the exceptions to the principal demands of plaintiff is whether the acts of the defendants complained of in the petition constituted a conspiracy to restrain trade or stifle competition, or to create a monopoly, so as to make them violative of and actionable under the public policy of this state, as expressed in the statute declared upon by plaintiff.

In dealing with the question thus presented, we may disregard defendants’ contention that plaintiff, in his petition, has not shown the formation of a conspiracy for lack of persons; and we may accept, as did the court below, without admitting, except for the purposes of this opinion, the correctness of the construction placed by plaintiff upon his own petition, that it sets forth a conspiracy in the allegations showing that the acts complained of were committed by defendant Kirby Lumber Company, acting by and through defendant Johnson, as its manager, and individually, and its various foremen in charge of its various departments. The proposition, then, is, Are the acts charged against defendants prohibited by sections 1 and 2 of the statute relied on by plaintiff

The statute itself, in so far as it confers on the injured party a civil action for the recovery of damages for his injuries, is nothing more than the legislative sanction of the legal principle that any injury to a lawful business, whether the result of an unlawful conspiracy or other wrongful act, is actionable.

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Bluebook (online)
111 So. 55, 162 La. 671, 52 A.L.R. 1023, 1926 La. LEXIS 2308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deon-v-kirby-lumber-co-la-1926.