Droba v. Berry

139 N.E.2d 124, 73 Ohio Law. Abs. 603, 2 Ohio Op. 2d 50, 1955 Ohio Misc. LEXIS 314
CourtTrumbull County Court of Common Pleas
DecidedDecember 22, 1955
DocketNo. 64795
StatusPublished
Cited by3 cases

This text of 139 N.E.2d 124 (Droba v. Berry) is published on Counsel Stack Legal Research, covering Trumbull County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Droba v. Berry, 139 N.E.2d 124, 73 Ohio Law. Abs. 603, 2 Ohio Op. 2d 50, 1955 Ohio Misc. LEXIS 314 (Ohio Super. Ct. 1955).

Opinion

OPINION

By BIRRELL, J.

The petition for a declaratory judgment requests this Court to determine the validity of a contract of partnership entered into between Plaintiff and Defendant with respect to the following sentence in Section A of the Amended Article XI of said partnership agreement, to-wit:

“Further, Dr. Droba agrees that in lieu of not having made any original capital investment at the initial date of the agreement, he will not practice medicine or surgery for a period of ten (10) years, whether by himself or as a member of a partnership, in said Kinsman, Trumbull County, State of Ohio, or within a radius of thirty (30) miles from said point.”

The Plaintiff, Dr. Droba, on May 24th, 1953 had entered into a partnership agreement with the Defendant, Dr. Berry, for a term of three years. Dr. Berry had established himself in Kinsman, having purchased a large dwelling in which his office was situated. He had already been drafted by the United States Army, and the date , of his entrance into [605]*605service had been postponed in order to permit him to find some one to carry on his established medical practice in Kinsman. Dr. Droba was completing his internship in a hospital in Erie, Pennsylvania, and was ready to launch into the practice of medicine. Their contract of partnership provided that in the event one of the partners was called into the Armed Forces, the remaining partner should pay the rent of the office space in Defendant’s building, at the rate of three hundred dollars a month, pay all expenses of continuing the partnership, and receive ninety per cent of the profits. Either partner was granted the right, upon ninety days notice, to dissolve the partnership, and if the partnership should be dissolved by either partner Dr. Droba agreed, among other matters, to remove himself from Kinsman as above set forth. When it was learned that Dr. Berry was leaving for the Service, Article XI of the partnership agreement was amended to which Amendment allusion will be made later.

The general rule in matters of this kind is substantially as follows:

“A contract in restraint of trade in which the restraint is partial only, reasonable and not oppressive, and in which a valuable consideration has passed between the parties, is one which the law will enforce.” 11 O. Jur. (3d), §114, p. 353.
“A physician may validly agree to limit or restrict himself in the practice of his profession within certain reasonable limitations of time and territorial area where ancillary to the formation of a partnership.” 41 Amer. Jur. No. 5 p. 136.

The Ohio Courts have repeatedly affirmed the foregoing and applied the same not only to general employment but to contracts of physicians. The rule laid down is as follows:

“All contracts in general restraint of trade are opposed to public policy and void; and those in partial restraint are also illegal, except when founded upon a valuable consideration, and when good reasons appear for entering into the contract. Before such a contract can be enforced, it must appear from the pleadings and proofs; 1. That the restraint is partial; 2. Founded upon a valuable consideration; and 3. That the contract is reasonable and not oppressive. Lange v. Werk, 2 Oh St 520.”

This ruling has ben referred to, emphasized, and approved in the following cases:

Thomas v. Admr. of Miles, 3 Oh St 274, “Reasonable and proper.”

Grasselli v. Louden, 11 Oh St 349 @ p. 357 Quoting: “We cannot see how a better test can be applied to the question, whether reasonable or not, than by considering whether the restraint is such only as to afford a fair protection to the interests of the party in favor of whom it is given, and not so large as to interfere with the interests of the public. Whatever restraint is larger than the necessary protection of the party, can be of no benefit to either; it can only be oppression, and if oppression, it is in the eye of the law unreasonable. Whatever is injurious to the interest of the public is void on the ground of public policy.

Lufkin Rule Co. v. Fringeli, 57 Oh St 596, “Shown to have been reasonably necessary.”

Robey v. Theatre Co., 126 Oh St 473, “Reasonable and not oppressive.”

[606]*606Briggs v. Butler, 140 Oh St 499, “not unreasonably restrictive upon the right of the employee and does not contravene public policy.”

Ewing v. Davis, 2 C. C. ns 90, affd. 71 Oh St 471, “not unreasonable, nor oppressive, nor against public policy.”

The Paragon oil Co. v. Hall, 7 O. C. C. 240, “Such only as affords a fair protection * * * and not so large as to unnecessarily interfere with the interests of the public.”

Kevil v. Standard Oil Company, 8 O. N. P. 311, “not more extensive than is necessary to enable the party * * * to enjoy the fruits of his contract.”

Harry Livingston Inc. v. Stern, 69 Oh Ap 105 @ p. 108, “It is observed that the radius agreed upon covers its business activity.”

Gates-McDonald Co. v. McQuilkin, 33 Abs 481, “The test generally applied in determining the validity of a restrictive comment is whether or not the restraint is necessary for the protection of the business or good will of the employers and if so, whether it imposes on the employee any greater restraint than reasonably necessary to secure to the business of the employer or the good will thereof such protection.”

Dance Studios v. Witter, 62 Abs 17 (a veritable mine of references), “The Courts must consider whether said restraint is reasonable as to (1) the employer, (2) the employe, and (3) the public.”

Hubman Supply Co. v. Irvin, 67 Abs 119, “Irreparable injury, actual or threatening, must be proved in order to grant injunctive relief.”

That the foregoing is the general rule is clearly adduced from the following quotations:

Williston on Contracts, No. 1636 Vo. 5 p. 4580.

“It is everywhere agreed that in order to be valid a promise imposing a restraint in trade or occupation must be reasonable. The question of reasonableness is for the Court, not the Jury; and in considering what is reasonable, regard must be paid to (a) the question whether the promise is wider than is necessary for the protection of the covenantee in some legitimate interest, (b) the effect of the promise upon the covenantor and (c) the effect upon the public. If the restraint imposed is greater than is necessary for the protection of the covenantee the promise is necessarily invalid.”

And Pomeroy’s Equity Jurisprudence, Vol. 3, No. 934 (c) pp. 687-9:

“As to what constitutes a reasonable restraint it is ordinarily held that each case must be governed by its own peculiar circumstances. Courts no longer fix arbitrary rules as to geographical bounds and time limits beyond which a contract to forbear from competition will not be enforced. * * * Public welfare is first considered, and if it is not involved, and the restraint upon one party is not greater than protection to the other party requires, the contract may be sustained. The question is, whether in the particular circumstances the contract is or is not reasonable.”

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

Related

Baltimore & Ohio Railroad v. Public Utilities Commission
490 N.E.2d 888 (Ohio Supreme Court, 1986)
Lovelace Clinic v. Murphy
417 P.2d 450 (New Mexico Supreme Court, 1966)
BURNDY CORPORATION v. Cahill
196 F. Supp. 619 (D. Minnesota, 1961)

Cite This Page — Counsel Stack

Bluebook (online)
139 N.E.2d 124, 73 Ohio Law. Abs. 603, 2 Ohio Op. 2d 50, 1955 Ohio Misc. LEXIS 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/droba-v-berry-ohctcompltrumbu-1955.