John C. Winston Co. v. Vaughan

11 F. Supp. 954, 1935 U.S. Dist. LEXIS 2001
District Court, W.D. Oklahoma·Decided August 27, 1935·No. 1764·Published·Cited by 9 cases

Opinion

FRANKLIN E. KENNAMER, District Judge.

This suit was instituted for a prohibitory and mandatory injunction, as well as general equitable relief. The jurisdiction of this court is invoked upon the grounds of diversity of citizenship and that more than $3,000 is involved, exclusive of interest and cost. The plaintiff is a corporation organized under the laws of the state of Pennsylvania, and is engaged in the business of publishing and selling school textbooks. The defendant is a resident of the state of Oklahoma, and is the duly elected, qualified, and acting State Superintendent of Public Instruction of the State of Oklahoma, and is ex officio Secretary of the Oklahoma Textbook Commission. The basis for the relief sought is a contract entered into between the plaintiff and the Oklahoma Textbook Commission on November 9, 1934, by which the plaintiff obtained the right to supply certain textbooks for use in the common • schools of Oklahoma for a period of four years. The interference with this contract and the rights obtained thereunder, as well as efforts upon the part of the defendant in encouraging and advising the use of textbooks other than those supplied -by plaintiff, constitute the grounds of complaint.

. A contract was awarded plaintiff pursuant to sealed bids and proposals submitted by plaintiff, and other parties and corporations, by the Textbook Commission of the State of Oklahoma, acting under authority vested in it by the laws of the state of Oklahoma, House Bill No. 121, chapter 84 of the Laws of the State of Oklahoma 1933 (Harlow’s 1934 Supplement § 6694a et seq.). The contract, in substance, provided that the plaintiff agreed, in consideration of the adoption of certain of its publications as textbooks and work books, basic and supplementary, to furnish said books for use in the public schools in the state of *956 Oklahoma for a period of four years from and after July 1, 1935. The plaintiff was obligated under the contract to maintain suitable and convenient distributing points, and a joint depository with other contractors, where a stock of their textbooks were available to supply all immediate demands, and provided further for the distribution of the books to bonded dealers in each county of the state of Oklahoma from the joint depository. The contract expressly provided that the state of Oklahoma should not be liable to any contractor for any sum, but plaintiff and other contractors were to receive compensation solely and exclusively from the proceeds of the sale of the textbooks, as provided in the contract. The books involved in the action, which plaintiff was obligated to supply, are:

“Human Use Geography” (Two Book Series), by J. Russell Smith.

“English for Use,” by Beveridge Ryan and Lewis (Three Book Series).

“New Silent Readers,” by Lewis and Rowland.

“Facts and Fancies.”

“Whys and Wherefores.”

“Scouting Through.”

Plaintiff complied with the obligation in the contract, as provided by law, by executing a bond in the sum of $9,000 for the faithful performance of the contract.

The bill of complaint charged, and the proof sustained, the allegation that the plaintiff had prepared and printed textbooks for use in the public schools of the state of Oklahoma at an expense in excess of $45,000, by virtue of the contract, and had delivered said textbooks to the depository in Oklahoma City, where said books had been distributed to each of the counties in Oklahoma wh'ere said books are used in the common schools. These books were printed especially for use in Oklahoma schools, and the evidence established that plaintiff would suffer substantially a total loss of the value of the books if their use were discontinued, and unless the defendant, as State Superintendent of Public Instruction and as Secretary of the Oklahoma Textbook Commission, was restrained from sending letters 'or circulars over his signature advising county superintendents and trustees of school boards of the public schools of the state not to purchase books printed by plaintiff, and encouraging the use of other textbooks in the common schools, and in refusing to advise county superintendents and members of the school boards that plaintiff’s books had been legally adopted as textbooks for use in the public schools of Oklahoma. The evidence was uncontradicted that the defendant, as State Superintendent of Public Instruction, had sent letters to county superintendents and members of the school boards advising the use of textbooks in the common schools of Oklahoma other than those printed by plaintiff, for use in subjects treated in the textbooks described in plaintiff’s contract. It was established beyond doubt, in accordance with the allegations of plaintiff’s bill, that the defendant had refused to recognize plaintiff’s contract, or to abide by it, and that his conduct would cause the use of textbooks other than plaintiff’s in the common schools of Oklahoma, and would cause the plaintiff irreparable loss. Defendant undertook to justify his conduct by asserting that plaintiff’s contract with the Oklahoma Textbook Commission was illegal, and that the books referred to in the contract, and which had been deposited in the depository and used in the common schools, were textbooks that had not been legally adopted. Other contentions were made in the trial of the case which will be referred to hereafter, but the justification submitted for the conduct of the defendant was the alleged illegality of plaintiff’s contract,

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John C. Winston Co. v. Vaughan, 11 F. Supp. 954, 1935 U.S. Dist. LEXIS 2001 (W.D. Okla. 1935).

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