Eastern Finance Co. v. Gordon

20 S.E.2d 522, 179 Va. 674, 1942 Va. LEXIS 263
CourtSupreme Court of Virginia
DecidedJune 8, 1942
DocketRecord No. 2547
StatusPublished
Cited by9 cases

This text of 20 S.E.2d 522 (Eastern Finance Co. v. Gordon) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eastern Finance Co. v. Gordon, 20 S.E.2d 522, 179 Va. 674, 1942 Va. LEXIS 263 (Va. 1942).

Opinion

Eggleston, J.,

delivered the opinion of the court.

Eastern Finance Company, a Small Loan Corporation, sometimes hereinafter called the plaintiff, filed its bill in the court below against Charles Henry Gordon, sometimes hereinafter referred to as the defendant, alleging that on August 31, 1940, the parties entered into a written contract whereby Gordon was employed as the manager of the plaintiff’s Newport News office for a term of five years beginning on September 1, 1940, at the salary of $180 per month; that Gordon had agreed in the contract that he would not “engage in the small loan business on his own account either directly or indirectly or as an employee or associate of any other person, corporation or partnership * # * for a period of two (2) years from the date of the termination of the employment under this contract, within the First Congressional District of Virginia”; that on December 6, 1940, Gordon “resigned his employment with the plaintiff and almost immediately thereafter entered into the employment of Old Dominion Small Loan Company, a competitor of the plaintiff, in the City of Newport News, Elizabeth City County, and generally throughout said First Congressional District of Virginia,” and continued to be so employed in violation of the terms of the contract; and that in his new employment the defendant, Gordon, was “taking business away from plaintiff and dealing with the customers of plaintiff and using in competition with the plaintiff the secrets and information he obtained as an employee of the plaintiff,” greatly to its damage. The bill prayed that Gordon be “temporarily and permanently enjoined from violating his contract” with the plaintiff.

The defendant filed an answer admitting the execution of the contract of employment with the plaintiff and the terms [678]*678thereof, the termination of the contract, and his employment by the Old Dominion Small Loan Company, a competitor of the plaintiff, as alleged in the bill. But he alleged that at the time of the termination of the contract of employment with the plaintiff the latter had agreed, in consideration of his resignation, that he might resume his connection with the Old Dominion Small Loan Company, by which he had been formerly employed.

Upon the consideration of an affidavit filed by the defendant, Gordon, and a counter-affidavit filed on behalf of the plaintiff corporation, the chancellor, over the objection of the plaintiff, directed an issue out of chancery and impaneled a jury to try the issue, “Whether as part of the consideration for the defendant’s resignation it was agreed by the plaintiff that the defendant could resume his former employment in the City of Newport News, Virginia, with the Old Dominion Small Loan Company.”

After the jury had heard the evidence and had been instructed by the court, it answered the issue by a verdict in favor of Gordon.

The chancellor declined to set aside the verdict on the pivotal issue and entered a decree dismissing the bill. From this decree the plaintiff Finance Company has appealed.

The first assignment of error is that the lower court erred in directing the issue out of chancery. The basis of this .contention is that the affidavit filed by the defendant was wholly insufficient to warrant the direction of the issue. The material portion of Gordon’s affidavit is as follows:

“That he is the defendant in the chancery cause now pending in the Circuit Court of Elizabeth City County, Virginia, under the style of Eastern Finance Company, a Small Loan Corporation, v. Charles Henry Gordon, the object of which is to obtain an injunction to prevent the defendant, Charles Henry Gordon, from engaging in the small loan business in the First Congressional District of Virginia, in violation of the contract of August 31, 1940, between the said Charles Henry Gordon and the Eastern Finance Company.
“And the affiant states further that the case will be ren[679]*679dered doubtful by the conflicting evidence of the plaintiff as to whether it was agreed between the plaintiff and defendant at the time the defendant submitted his resignation to the plaintiff, upon the demand of the plaintiff, that the defendant, Charles Henry Gordon, might go back to his former employment with the Old Dominion Loan Company, if he would submit his resignation as an officer and employee of the Eastern Finance Company.
“The affiant states further that in the trial of this case the outcome will be rendered doubtful by conflicting evidence in regard to,
##*######
“(c) Whether as part of the consideration for the defendant’s resignation it was agreed by the plaintiff that the defendant could resume his former employment in the City of Newport News, Virginia, with the Old Dominion Small Loan Company.
“The affiant further represents that he is of the opinion, in view of the plaintiff’s action against him, that it will deny the issues set forth as * * * (c) above and that there will be much and conflicting testimony introduced by both the plaintiff and defendent in regard to these facts and that the same are questions of fact and should be submitted to a jury on an issue out of chancery in accordance with Section 6246 of the Code of Virginia.
“For the reasons stated above the affiant avers that there will be a conflict of witnesses between the plaintiff and defendant to such an extent it makes it absolutely doubtful on which side the preponderance of evidence lies and an issue out of chancery ought to be ordered.”

Code, section 6246, provides that: “Any court in which a chancery case is pending may direct an issue to be tried in such court or in any circuit or corporation court, and the court shall have the discretion to direct such an issue to be tried before any proof has been taken by either the plaintiff or defendant if it shall be shown by affidavit or affidavits after reasonable notice that the case will be rendered doubtful by the conflicting evidence of the opposing party.”

[680]*680The general principles applicable to the direction of an issue out of chancery under this statute have been stated and restated many times by this court. They need not be repeated here. The object of an issue is to satisfy the conscience of the chancellor in a doubtful case. But it is not to be directed merely because the evidence is contradictory. The conflict of evidence must be great and its weight so nearly evenly balanced that the court is unable or with, difficulty able to determine where preponderance lies. It is a matter within the sound judicial discretion of the chancellor and is subject to review on appeal. Stevens v. Duckett, 107 Va. 17, 20, 57 S. E. 601; Hook v. Hook, 126 Va. 249, 254, 101 S. E. 223; Bunkley v. Commonwealth, 130 Va. 55, 108 S. E. 1; Harris v. Citizens Bank, etc., Co., 172 Va. 111, 133, 200 S. E. 652, 660.

' In Stevens v. Duckett, supra (107 Va., at pages 21, 22), it was held that the affidavit of a litigant and his counsel that, in their opinion, “the case will be .rendered doubtful by the conflicting evidence of the opposing party,” following the precise language of the statute, was not sufficient to warrant the chancellor in ordering an issue.

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Bluebook (online)
20 S.E.2d 522, 179 Va. 674, 1942 Va. LEXIS 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eastern-finance-co-v-gordon-va-1942.