Johnson v. Jones

1 Tenn. App. 24, 1925 Tenn. App. LEXIS 5
CourtCourt of Appeals of Tennessee
DecidedMay 28, 1925
StatusPublished
Cited by2 cases

This text of 1 Tenn. App. 24 (Johnson v. Jones) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Jones, 1 Tenn. App. 24, 1925 Tenn. App. LEXIS 5 (Tenn. Ct. App. 1925).

Opinion

» OWEN, J.

This cause was before this court on appeal by G. E. Johnson, the defendant below and cross-complainant, at the May term, 1922. The decree of the chancery court at that time was affirmed in part, reversed in part and remanded. The opinion of this court was prepared by Special Judge W. R. Allen. The cause was remanded and it was ordered that a reference be had before the clerk and master and ascertain the defendant G. E. Johnson’s damages which he alleged by way of cross-bill he was entitled to caused by a breach of contract.

This court being of opinion under the facts disclosed in the record upon the former appeal that Johnson was entitled to at least nominal damages, a reference was had and a report made by the clerk and master, who fixed Johnson’s damages at $20. This report of the clerk and master was confirmed by the chancellor and a decree rendered in favor of Johnson on his cross-bill for the sum of $20. Johnson excepted to the master’s report; his exceptions were overruled. He excepted to the decree of the chancellor in overruling his exceptions to the master’s report, and excepted to the decree of the court in only allowing him the sum of $20. He prayed and was granted an appeal to this court, which he has perfected, and has assigned in this court three errors. The three errors raise but one question, and that is, that the chancellor erred in not sustaining the defendant’s exceptions to the master’s report, and the chancellor erred in not giving the defendant a decree for the damages that had been sustained by reason of Dr. Jones having reentered the practice, and thereby breached his contract.

The complainant and the defendant are both practicing physicians. The complainant J. L. Jones, for some years prior to 1916 resided in the village of Washington, a community of dbout 100 inhabitants, in Rhea county. He had been practicing in that community for some years and decided to sell his house and lot, or home, in the village of Washington, and G. E. Johnson became the pur *26 chaser for the consideration of $1,000. $450 of this amount was paid in cash at the time of the purchase on the 6th day of September, 1916, and for the unpaid' purchase money the appellant executed two promissory notes, due in twelve and twenty-four months after-date. These notes were secured by specific vendor’s lien retained on the property, and the notes not being paid at maturity, the bill in this cause was filed by Jones and wife to collect said notes, and to enforce their vendor’s lien. The appellant filed a plea of non est factum, alleging in said plea that the notes had been materially altered since the execution. The chancellor overruled this plea, and his decree in reference to the overruling of the plea of non est factum was affirmed by this court on August 22, 1922.

Appellant also filed an answer, admitting the purchase of the house and lot in question, and the execution of the two notes. It is further averred in the answer that appellee represented to appellant,’ both of whom were physicians, that he, the appellee, had a country practice, which he proposed to sell with the house and lot, and that this practice and good will was purchased with the house and lot, and that appellee agreed to not practice medicine in the territory embraced in the practice which he was selling to appellant.

And that appellee breached the said contract, by locating for the practice of medicine at Evansville, a town three and a half or four miles from the town of Washington, and which was within and included the practice and good will which had been sold to appellant, and that as a result of appellee thus locating and entering upon the practice of medicinej appellant was damaged in the sum of three thousand dollars. And he filed his answer as a cross-bill, seeking a recovery on account of a breach of said contract, in the sum of three thousand dollars.

Appellee filed an answer to the cross-bill, denying every material allegation of same. The chancellor sustained complainant’s bill and ordered the house and lot sold. He dismissed appellant’s cross-bill. The cause was appealed to this court.as heretofore stated, and in disposing of the assignments of error, we quote from the opinion of Special Judge Allen as follows-:

“We are constrained to hold that the chancellor was in error in dismissing appellant’s cross-bill, and so much of his decree as so held is reversed.”

As to what damages, if any, appellant can recover, presents a very difficult question, and one of considerable doubt. The proper course for him to have pursued and the one that would have been most efficacious was to have filed a bill in chancery . . . and enjoined appellee from violating his contract, and, while the authorities hold that is the most natural and proper course to pursue, yet he may sue for breach of contract and recover damages, provided he can, *27 under the rules relating to such cases, show his damages, but in doing so, he will meet with great difficulty.

We have earefidly examined the entire record and are of the opinion that he was damaged very little; the fact is, the proof shows that he had lost considerable of his practice before appellee returned and begun the practice of medicine in the territory, and that the inducement of appellee to return and take up the practice at the time he did, was in response to requests that he do so from his former 'clientele and friends.

It is also shoAvn that there was possibly five other doctors practicing in the territory at the same time and that they took considerable of the practice which appellee had before he left. It is further shown that there was considerable dissatisfaction with appellant, as a physician, among the people. So much so, that it \A7as common talk about the stores and public places.

Under the record as we find it, he would be only entitled, in our opinion, to recover nofhinal damages under the rule by which such questions must be considered, as all the damages he proves or attempts to prove are speculative in the extreme.

In the ease of Jackson v. Burns, to which reference has already been made, the court said:

‘1 The difficulty in arriving at a proper measure of damages, and in excluding elements Avhich are purely speculative, is forcibly illustrated in the case of Slack v. Sudduth, 102 Tenn., 375, and in East Tenn. Nat’l. Bank v. First Nat’l. Bank, 7 Lea, 420. The court is of the opinion that in eases like the present and under the facts, the plaintiff’s proper remedy is to enjoin the defendant from engaging in the business contrary to agreement.

“This Avould, so far as results go, be to specifically enforce the contract. If, however, the plaintiff resorts to an action of damages, for its breach, only such actual damages as have been sustained, up to the bringing of the suit, should be-recovered. If the competition is continued, injunction may be'resorted to. It is practically impossible to determine the difference in the value of the property or contract, with and without the proviso against competition.” Jackson v. Burns, 102 Tenn., 703-704.

It is apparent from the testimony that the house and lot, which appellee sold appellant, was worth about a thousand dollars, and that appellee had not considered he was getting anything for the good will of his business, or the agreement not to practice in the territory.

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Cite This Page — Counsel Stack

Bluebook (online)
1 Tenn. App. 24, 1925 Tenn. App. LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-jones-tennctapp-1925.