Lanzit v. J. W. Sefton Mfg. Co.

83 Ill. App. 168, 1898 Ill. App. LEXIS 762
CourtAppellate Court of Illinois
DecidedJune 12, 1899
StatusPublished

This text of 83 Ill. App. 168 (Lanzit v. J. W. Sefton Mfg. Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lanzit v. J. W. Sefton Mfg. Co., 83 Ill. App. 168, 1898 Ill. App. LEXIS 762 (Ill. Ct. App. 1899).

Opinion

Mr. Presiding Justice Windes,

after making the above statement, delivered the opinion of the court.

It is claimed, first, that the allegations of the bill are not sufficient to sustain the decree; second, that there was error in the admission of evidence; third, that the decree is not sustained by the proof; and, fourth (which seems to be the principal contention of counsel), that the contract in question is void, as being against public policy and in restraint of trade.

The allegations of the bill and amendment thereto must be taken together in considering their sufficiency to sustain the decree. When so considered, it appears there are allegations of fact, in substance, of the matters contained in the statement preceding this opinion. They need not be here enumerated. It is sufficient that they are ample to sustain the decree to the extent that it should be sustained. The contention of appellant, that as the bill contains no allegation that any injury has accrued to appellee, or that any injury will accrue, it is, therefore, insufficient, is not tenable. The bill, as we have seen, alleges facts showing a continuing violation by appellant of his contract with appellee, and it is not essential that appellee should allege or prove that injury had or would result to it therefrom. The relief, if any, to which appellee is entitled for appellant’s violation of the contract is predicated upon the reason that there is no adequate remedy at law. Damage to appellee is immaterial. 3 Pomeroy’s Eq. Juris., Secs. 1342 to 1344, and cases cited in notes; 2 High on Injunctions, Sec. 1135; Steward v. Winters, 4 Sandf. (N. Y.), 587; Cowen v. Fairbrother, 32 L. R. A. 836.

2d. Humerous objections as to the admission of evidence on the hearing by the master are pressed upon our attentiop. Many of them are, in our opinion, well taken. They relate, however, mainly to immaterial and unimportant items of evidence, which should have been excluded by the master, but they can not affect the findings of the master nor the decree of the court for the reason that there is sufficient competent evidence in the record to justify a decree in appellant’s favor. It will be presumed that the master and the court both based their conclusions upon the competent proof. Dunn v. Berkshire, 175 Ill. 243.

3d. We think the decree is, with the exceptions hereinafter noted, sustained by the evidence.

The contract of appellant with appellee, which binds him for a period of ten years from Februarp 3,1897, not to engage directly or indirectly, either alone or with any other person, firm, or corporation, as employe, stockholder, officer, manager or otherwise; or in an advisory capacity set up, follow or engage in the business of manufacturing, buying, selling, handling or dealing in paper receptacles, paper oyster pails, clothing boxes, folding paper boxes or paper novelties of any kind or description whatsover; nor to furnish any other person, firm or corporation with any information relating to or concerning any of said business within the. States of Indiana and Illinois, is admitted; and also the contract between appellant and the Eentz Paper Co., by which appellee undertakes to act as foreman and traveling salesman for the Eentz Co. for two years from March 1, 1898. He admits that he did work under this contract (and besides, it is abundantly proved) for the Eentz Co. The business of the Eentz Co., as testified to by the witness Eentz, and not denied, is that of dealing in all kinds of wrapping papers, paper sacks, a general line of store supplies, for bakers, grocers and butchers, wrapping paper bags, oyster pails, ice cream pails, most all description of boxes, whatever orders come into it, suit boxes, and paper novelties sold in boxes.

It is also shown by the clear preponderance of the evidence, that said Eentz and Eafty, from aboutMarch 1, 1898, up to the filing of the bill, were engaged in a like business to that of the Eentz Co., under the name of the Chicago Oyster Pail Co., and that appellant was in their employ during that time.

Both these employments of appellant constitute a direct violation of appellant’s contract with appellee. The consideration named in the contract, to wit, the purchase by appellee of appellant’s interest in the business of the Lanzit Manufacturing Company, and his employment by appellee at the salary stated, are good and valuable considerations, and sufficient to support the contract.

4th. The claim that this contract—in so far as it applies to the States of Indiana and Illinois—is void as against public policy and in restraint of trade, is not, in our opinion, tenable.

In Cobbs v. Niblo, 6 Brad. 60, relied on by appellant, Mr. Justice Wall, speaking for the court (Fourth Dist.), says:

“ The law is well settled that parties may make a valid agreement in restraint of trade where the operation of the agreement is partial and limited under reasonable conditions, and where it is supported by a valid consideration. The contract must be construed by the court, and its reasonable character determined.”

In Talcott v. Brackett, 5 Brad. 60-67, also relied upon by appellant, this court, by Mr. Justice McAllister, said : “ If the contracts are based upon a good and valuable consideration, and- the limitation is reasonable, which is a question of law for the court, they are upheld and enforced.”

In Hursen v. Gavin, 162 Ill. 377, cited by appellant, in which the court sustained a contract by which the retiring member of a firm engaged in the undertaking and livery business agreed not to engage in such business within the limits of Chicago for the period of five years, this language was used, viz.:

“ A contract in restraint of trade is thus total and general when by it a party binds himself not to carry on his trade or business at all, or not to pursue it within the limits of a particular country or State. Such a general contract in restraint of trade necessarily works an injury to the public at large and to the party himself in the respects indicated and is, therefore, against public policy.”

This statement was, we think, unnecessary to a decision of the case before the court, because the contract under consideration had reference only to a livery and undertaking business which had been and was to be carried on within the limits of the city of Chicago, and necessarily purely local.in its nature.

The court also further says, citing authorities:

“But a contract which is only in partial restraint of trade is valid, provided it is reasonable and has a consideration to support it. The restraint is reasonable when it is such only as to afford a fair protection to the interests of the party in whose favor it is imposed.”

The court also cites with approval cases holding that contracts of this nature are divisible—a part being held to be valid and a part void because- of unreasonable .restraint as to time or territory, or both. See Pelz v. Eichele, 62 Mo. 171; Grill v. Ferris, 82 Mo. 156, and Dean v. Emerson, 102 Mass. 480.

A recent and carefully considered case is Cowan v. Fairbrother, 32 L. R. A.

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Related

Gibbs v. Consolidated Gas Co. of Baltimore
130 U.S. 396 (Supreme Court, 1889)
Dean v. Emerson
102 Mass. 480 (Massachusetts Supreme Judicial Court, 1869)
Hursen v. Gavin
44 N.E. 735 (Illinois Supreme Court, 1896)
Dunn v. Berkshire
51 N.E. 770 (Illinois Supreme Court, 1898)
Peltz v. Eichele
62 Mo. 171 (Supreme Court of Missouri, 1876)
Gill v. Ferris
82 Mo. 156 (Supreme Court of Missouri, 1884)

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83 Ill. App. 168, 1898 Ill. App. LEXIS 762, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lanzit-v-j-w-sefton-mfg-co-illappct-1899.