Hibbett Sporting Goods, Inc. v. Biernbaum

375 So. 2d 431, 1979 Ala. LEXIS 3093
CourtSupreme Court of Alabama
DecidedAugust 24, 1979
Docket78-290
StatusPublished
Cited by40 cases

This text of 375 So. 2d 431 (Hibbett Sporting Goods, Inc. v. Biernbaum) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hibbett Sporting Goods, Inc. v. Biernbaum, 375 So. 2d 431, 1979 Ala. LEXIS 3093 (Ala. 1979).

Opinion

375 So.2d 431 (1979)

HIBBETT SPORTING GOODS, INC.
v.
Ralph BIERNBAUM.

78-290.

Supreme Court of Alabama.

August 24, 1979.
Rehearing Denied September 28, 1979.

*433 J. A. Keller, of Keller & Cochran, Florence, for appellant.

George W. McBurney, of Poellnitz, Cox, McBurney & Jones, Florence, for appellee.

JONES, Justice.

Plaintiff, Hibbett Sporting Goods, Inc., a tenant of Defendant Regency Square Shopping Center, a large retail shopping mall, brought suit to enjoin the mall from also leasing space to Athlete's Foot, Inc. Plaintiff alleged that the contemplated lease to Athlete's Foot, a retail chain specializing in athletic footware, would violate an oral agreement in which one of the mall's owners, Defendant Ralph Biernbaum, promised that he would not lease space to another "sporting goods store" if Hibbett Sporting Goods signed a lease to enter the mall. A lease was subsequently signed, but it made *434 no mention of the previously negotiated oral non-competition agreement. To the contrary, the written lease expressly stated that there were no "restrictive covenants or exclusives in favor of Lessee" and contained, also, a standard merger clause providing that no stipulations or promises had been made apart from those expressly set forth in the lease itself.

Although there was much disagreement at trial as to the definition of "sporting goods" and whether Athlete's Foot was in fact a "sporting goods store," the existence of the oral agreement was not disputed. Nor was there any evidence adduced at trial that the agreement (not to rent to another sporting goods store) had been abandoned, or in any way modified, as a result of subsequent negotiations, so as to be merged into the written instrument.

Defendant objected at trial to the admission of testimony concerning the oral agreement on the basis that it contradicted the written lease and, therefore, was precluded by the parol evidence rule. The trial Court determined that the written lease was "fully integrated, complete, and unambiguous" and applied the parol evidence rule to deny the injunction. Plaintiff appeals.

The parol evidence rule is explained by Corbin as follows:

"When two parties have made a contract and have expressed it in a writing to which they have both assented as the complete and accurate integration of that contract, evidence, whether parol or otherwise, of antecedent understandings and negotiations will not be admitted for the purpose of varying or contradicting the writing." 3 A. Corbin, Contracts, § 573, at 357 (1960), cited in Richard Kelley Chevrolet Co., Inc. v. Seibold, 363 So.2d 989, 993 (Ala.Civ.App.1978).

The parol evidence rule, therefore, does not apply to every contract of which there exists written evidence, but applies only when the parties to an agreement reduce it to writing, and agree or intend that the writing shall be their complete agreement. 3 Williston, Contracts, § 633; I.H.M., Inc. v. Central Bank of Montgomery, 340 So.2d 30, 33 (Ala.1976); Alabama Power Company v. Pierre, 236 Ala. 521, 526, 183 So. 665 (1938).

It is often stated that parol evidence is not admissible to vary or contradict the terms of a written contract; however, this abbreviated statement of the rule is misleading because it begs the critical question whether the writing is, in fact, a true and final expression of the agreement made by the parties.

As stated by this Court in Sellers v. Dickert, 185 Ala. 206, 213, 64 So. 40, 43 (1913), cited in Seibold, supra:

"The general doctrine [of the parol evidence rule] necessarily rests upon the existence of a valid written instrument expressing the obligations assumed by or imposed upon the parties. The implication, at least, is that the executed writing contains all stipulations, engagements and promises the parties intend to make or to assume, and that all previous negotiations, conversations, and parol agreements are merged in the terms of the instrument."

Where there exists doubt that the written agreement was ever intended to reflect the full agreement of the parties, the courts of this State have not hesitated to admit contradictory parol evidence of their true agreement. See I.H.M., Inc. v. Central Bank of Montgomery, supra; Alabama Power Company v. Pierre, supra; and Richard Kelley Chevrolet Co., Inc. v. Seibold, supra. See, also, Mayo v. Andress, 373 So.2d 620 (Ala.1979).

Defendants/Appellees argue in brief that the written lease in fact states the full agreement between the parties and they point especially to the merger clause as determinative of this issue. Though it is true that the writing, on its face, is complete and unambiguous, it is equally clear from the undisputed evidence in this case that, with respect to the non-competitive agreement, the lease does not accurately state the full contract between the parties. The existence of the non-competitive agreement —unchanged by any subsequent dealings *435 —was acknowledged by Defendant Biernbaum himself:

"Q. Do you recall at that time you stated to Mr. Hibbett in substance that you would not rent space to any other sporting goods business?

"A. Yes, I did say I would not rent another sporting goods in the center.

". . .

"Q. Now, there is no provision in this lease prohibiting you or the Mall from putting in a competing business against Mr. Hibbett is there?

"A. It wouldn't be necessary.
". . .

"Q. Was the statement that you wouldn't put in another sporting goods store, was that your statement?

"A. Yes, sir.
"Q. And that is what you agreed to do?
"A. Right.
"Q. And that was separate from the lease?
"A. And I have held to my agreement."

To the extent, then, that the written lease contradicts the actual agreement of the parties, it is simply untrue, and the presence in the writing of a merger clause is immaterial. Paper and ink possess no inherent power to cause statements to be true when they are actually untrue, and a provision in a writing that there exist no previous understandings or agreements not contained therein is merely a statement which actually may be untrue. 3 A. Corbin, Contracts, § 578 at 407-411 (1960).

The parol evidence rule does not prevent the admission of contradictory evidence to establish the truth. 3 A. Corbin, Contracts, § 586 at 489 ff., citing Pruett v. First National Bank of Anniston, 229 Ala. 441, 157 So. 846 (1934); Nearhos v. Keith, 221 Ala. 643, 130 So. 409 (1930). Nor, for that matter, does the rule prevent the enforcement of contracts actually made.

The rule, then, is one of substantive law. It does not exclude certain data because, for one reason or another, they are untrustworthy or undesirable as a means of evidencing some fact to be proved. The rule simply declares that certain kinds of fact are legally ineffective as a matter of contract law. Wigmore, Evidence, § 2400 at 2 (1940). See, also, 3 A. Corbin, Contracts, § 573 at 356, et seq.

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Bluebook (online)
375 So. 2d 431, 1979 Ala. LEXIS 3093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hibbett-sporting-goods-inc-v-biernbaum-ala-1979.