Hunt v. Tibbetts

70 Me. 221, 1879 Me. LEXIS 153
CourtSupreme Judicial Court of Maine
DecidedSeptember 16, 1879
StatusPublished
Cited by5 cases

This text of 70 Me. 221 (Hunt v. Tibbetts) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunt v. Tibbetts, 70 Me. 221, 1879 Me. LEXIS 153 (Me. 1879).

Opinion

Barrows, J.

On the 24th of January, 1876, the defendant, by ■an instrument in writing, in consideration of four thousand dollars in negotiable notes, given by plaintiff to him payable'at various dates, the last of the series not being due when this action came up for trial, sold and transferred to the plaintiff all his right and interest in and to all the property and assets of the late firm of E. H. Tibbetts & Hunt, excepting debts due, but expressly including and transferring “all my (his) good-will in said business, as carried on by said copartnership before its dissolution,” and stipulated that he would not engage in or become in any way interested in that sort of business in Bangor “for the term of ten years from this date.”

“This last agreement, viz: not to engage in said business in said Bangor for ten years to be binding on me only in case the four thousand dollars, which is the consideration hereof, is paid according to said Hunt’s agreement to pay the -same and at the time agreed upon for said payment.” The plaintiff declares in a writ dated September 17, 1878, in assumpsit setting out the instrument according to its legal purport and effect, averring performance on his own part, and that defendant has broken his agreement as to the sale and transfer of the good-will of the business, and his agreement “not to engage in or become in any way interested in the retail coffin and casket business in the city of Bangor, for the term of ten years,” from the date of the transfer.

The allegations of breach are somewhat loose and defective as to time and circumstance, (see Lawes on pleading in assumpsit, Story’s Ed. 1811, pp. 208, 211,) but amendable ; and though perhaps sufficient to sustain an action after verdict, we think they should be amended so as to obviate the danger of surprise to the defendant for want of greater particularity in the declaration as to the subject of complaint.

The first and principal question presented by the' report is [225]*225whether the plaintiff can recover in the present action for damages sustained under the clause in the agreement that the defendant shall not enter into the same kind of business in Bangor for ten years.

It is well said in a note to Cutter v. Powell, in 2 Smith’s Leading Cases, 6th Am. ed., 22, that “few questions are of so frequent occurrence, or of so much practical importance and at the same lime so difficult to solve as those in which the dispute is whether an action can be brought by one who has entered into a special contrae!, part of which remains unperformed.”

The defendant here contends that the punctual payment of the whole of the four thousand dollars at the times agreed upon for said payment is a condition precedent to the maintenance of an action by the plaintiff for any breach of defendant’s contract in this respect.

The report shows that the plaintiff had paid without default on the days when they matured all his notes hot the last one which is not yet due, one of them having fallen clue and been paid since the commencement of this action. Tims far no breach of the contract can be attributed to the plaintiff. Is the language of the contract such that his remedy for a breach by the defendant must necessarily be postponed until he lias made all the payments which lie is hound to make %

The language is that of the defendant and is to be construed most strictly against him and favorable to the plaintiff.

The defendant in the outset as a part of the consideration of the plain! iff’s notes payable on time, promises that he will not engage in the business for ten years from the date of the contraed.

It is obvious that two of the matters- which courts have been wont to deem important in determining whether the stipulations of parties are independent, or whether performance by one party is a condition precedent to the maintenance of bis action for a breach on the part of the other — -to wit : the order of time in which performance is to take place, and the fact that on each side the promises go only to a part of the consideration and a breach may be compensated in damages or the injured party otherwise have a perfect remedy, concur in the present case to incline us to [226]*226regard their mutual promises as independent, and to hold that each party should have his proper remedy for a breach by the other.

The defendant transferred his interest in the property of the firm and the good-will of the business and was to begin to perform his agreement (not to engage in the same business at Bangor for ten years) immediately.

When the action was commenced he had received and enjoyed a large part of the sum which was the consideration of his agreement not to compete with the plaintiff for the ten years succeeding the sale.

But for the peculiar form of the stipulation we should have no hesitation in saying that under the rules laid down by Sergeant Lawes in his valuable treatise on pleading in assumpsit, edition before cited, pp. 115, 119, neither of these parties could have counted on a full performance by the other as a condition precedent, but both must be left to their respective and mutual remedies in ease of partial non-performance.

See the learned note (1) of Sergeant Williams, 1 Williams’ Saunders, 320, et seq. See also the principle as stated in the note to Cutter v. Powell, 2 Smith’s Leading Cases, 26, thus : “if the plaintiff’s covenants which form the consideration be dependent, yet if part of the consideration have been accepted and enjoyed by the defendant, and the plaintiff have no other remedy than on the covenant, and the defect on his part be compensable by damages, the plaintiff may recover without alleging performance of the residue.” '

Defendant’s counsel base an argument of no little force upon the peculiar language of the contract as hereinbefore quoted, claiming that it is too direct and explicit to leave any room for construction.

Yet if it is repugnant to the manifest intention of the parties as expressed in the contract as a whole, it must give way.

The remark of Tindal, C. J., in Stevens v. Cushing, 3 N. C. 355, (32 E. C. L. R. 153,) is appropriate and sound.

In that case defendant’s promise was alleged to be made “on the performance of the before mentioned terms and conditions on [227]*227tbe part of the plaintiff.” The defendants pleaded non-performance in divers important particulars and plaintiff demurred. And the chief justice remarks: “The rnle has been established by a long series of decisions in modern times that the question whether covenants are to be held dependent or independent of each other is to be determined by the intention and meaning of the parties as it appears on the instrument and by the application of common sense to each particular case ; to which intention when once discovered, all technical forms of expression must give way.” He does not overlook the fact that “the defendant’s covenant is entered into with the plaintiff not simply in consideration of the plaintiff’s covenants and agreements, but on the performance of the before mentioned terms and conditions on the part of the plaintiff,” lie admits that the argument as to the intention based on these words would undoubtedly be strong were the question res integra; but he cites Boone v. Eyre, 1 H.

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Bluebook (online)
70 Me. 221, 1879 Me. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-v-tibbetts-me-1879.