Johnson v. Gwinn

100 Ind. 466, 1885 Ind. LEXIS 228
Indiana Supreme Court·Decided February 20, 1885·No. No. 11,732·Published·Cited by 11 cases

Opinion

Black, C.

This was an action brought by James M. Gwinn and John A. Gray against Joseph T. Johnson, William F. Johnson and Alvin B. Hinchman, the complaint being in three paragraphs.

One paragraph alleged, in substance, that in July, 1881, the plaintiffs, under the firm name of Gwinn & Gray, were engaged in the town of Rushville in the business of keeping a livery and feed stable; that at the same time the defendant Hinchman was engaged in said town in the same business, on his own account; that the other defendants, said Johnsons, were engaged at the same time in the same business, as partners', under the firm name of Johnson Bros., in said town, at a valuable public stand in a central location, near a leading hotel, and were doing a large and lucrative business; that on the 21st of July, 1881, the plaintiffs and said Hinchman purchased of said Johnson Bros, the buggies, sleighs, harness and other articles used by said Johnson Bros, in carrying on said business, and the good-will of said business, for the sum of §1,850, and then gave their promissory notes to said Johnson Bros, for said amount, which notes were paid at their ma[468] turity, before the commencement of this suit; that at the time of said sale, and as a part of the transaction, and in consideration of said purchase, said Johnson Bros, executed to said purchasers a written agreement, which, before the commencement of this action, was lost, without the fault of the plaintiffs, which was, in substance, as follows:

“ This agreement between Johnson Bros., and Gwinn & Gray and Alvin B. Hinchman, witnesseth, that said Johnson Bros, have sold to said Gwinn & Gray and Hinchman their livery stable stock, consisting of buggies, sleighs, harness, etc., and the good-will of said stable and concern, for the sum of $1,850; and, in consideration of said sale and purchase by said parties, said Johnson Bros, on their part agree not to start or run a livery stable in the property now known as the Johnson livery stable, on the east side of Morgan street, in Rush-ville, Indiana, or permit said property to be used for such purpose, during the term of their lease of said stable, the same being five years from the 1st day of January, 1881; and in case they should do so, or in any way violate this agreement, the said Johnson Bros, agree to forfeit and pay to said Gwinn & Gray and Hinchman the sum of $2,500 as liquidated damages for any breach of said agreement.
(Signed) “Johnson Bros.”

It was further alleged that the plaintiffs and Hinchman fully performed the contract on their part; that said Johnson Bros, failed to comply with said agreement on their part, and, in disregard thereof, during the term of their lease, on the 1st of May, 1883, violated said agreement by permitting Joseph T. Johnson to put into said property a valuable livery stock, and by entering into at said stand, and continuing to do, a general livery business, in the hiring of horses, carriages and buggies to the public, and in feeding and selling horses, and thereby running a rival livery stable business, in rivalry of the plaintiffs; that said Hinchman refused to join in this suit as a party plaintiff, and, therefore, he was made a de[469] fendant, to answer as to his interest. "Wherefore, etc. Another paragraph was, in effect, like that above in substance set out.

In another paragraph, the third, the contract set out made no mention of the good-will of the business, and it recited that said Johnson Bros, agreed not to engage in the livery-business in the stand where they then were, as long as their lease lasted on the s'ame, or as long as Gwinn & Gray and Alvin B. Hinchman were engaged in the livery business, and that in case of the violation of any of the conditions of the contract, said Johnson Bros, agreed to forfeit the sum of $2,-500. It was alleged in this paragraph that the plaintiffs had been engaged in said business in said town continuously since the execution of said contract, and that said Johnson Bros., in violation of said agreement, during the continuance of their lease on the premises mentioned in said contract, on the 1st of May, 1883, put a valuable livery stock into said stable and engaged in'the livery business at said stand, and had continuously thereafter engaged in said business at said stand, in opposition to and rivalry of the plaintiffs.

The defendant Hinchman answered separately that he was engaged in the livery business at the time spoken of in the complaint, and was a party to said contract sued on, and that since said time he had sold his said livery business to one Anthony Cline, “ and now claims no interest in said cause of action.”

The Johnsons jointly demurred to each paragraph of the complaint, and the demurrer was overruled. They jointly answered by a general denial and by a number of special paragraphs, a demurrer to which, filed by the plaintiffs, was sustained. The Johnsons also filed two paragraphs of cross complaint alleging mistakes in the drafting of said contract, and asking the reformation thereof. To these the plaintiffs filed a denial. A jury returned a verdict for the plaintiffs, assessing their damages at $2,500. The Johnsons made a motion for a new trial, which was overruled, and judgment was rendered on the verdict. The defendants Johnson and Johnson have appealed, and have jointly assigned errors. [470] Some of the alleged errors are such as could only be assigned by one of the appellants separately. ¥e will notice only the alleged errors properly assigned jointly. Hinkle v. Shelley, ante, p. 88. These relate to the rulings upon the joint demurrer to the complaint, the demurrer to the joint answers, and the motion for a new trial.

The objections urged against the complaint relate to the question of the sufficiency of the facts stated, and may be disposed of in connection with the questions involved in the ruling upon the demurrer to the answer. The only paragraphs of answer discussed by counsel are the second, third and fourth. The second stated, in substance, that prior to any breach of the contract sued on, said Iiinchman had sold out his livery stable and was not engaged in said business, and that said contract was joint.

The third paragraph alleged that whatever contract was made between the plaintiffs and the defendants was a joint contract, including said Hinchman, and that whatever sum they obligated themselves to pay was payable to the plaintiffs and said Hinchman jointly and not severally.

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Johnson v. Gwinn, 100 Ind. 466, 1885 Ind. LEXIS 228 (Ind. 1885).

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