Latham v. Butler

17 S.W.2d 1083, 1929 Tex. App. LEXIS 633
CourtCourt of Appeals of Texas
DecidedMay 9, 1929
DocketNo. 9265.
StatusPublished
Cited by13 cases

This text of 17 S.W.2d 1083 (Latham v. Butler) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Latham v. Butler, 17 S.W.2d 1083, 1929 Tex. App. LEXIS 633 (Tex. Ct. App. 1929).

Opinion

PLEASANTS, C. J.

This is a suit for injunction brought by appellee against the appellant to restrain him from the practice of his profession of doctor of medicine in Houston county.

Appellee’s suit is based upon a contract executed by the parties on February 8, 1927, by the terms of which appellant sold and transferred to appellee his interest in a hospital and its equipment in the city of Crockett theretofore jointly owned and operated by them, and agreed not to practice his profession of doctor of medicine in Houston county from and after February 1, 1928. In consideration of this transfer and agreement, the appellee agreed to employ appellant for one year as his assistant in operating the hospital and to pay him a salary of $5,000, payable in monthly installments of $200 until February 1, 1928, at which time the balance of the $5,000 should become due and payable. *1084 As a further consideration for the transfer and agreement of appellant, appellee assumed and agreed to pay all of appellant’s one-half of the indebtedness due by the former partnership incurred by them in the construction and operation of the hospital, which sum was approximately $19,000.

Plaintiff’s petition, after setting out the contract, alleges the compliance by him with all of his agreements and obligations under the contract, and the tender by him a short time after February 1, 1928, of a balance of $2,600 salary due defendant, but that the defendant in disregard and violation of his contract agreements and obligations did, on the termination of his year’s employment by the plaintiff, begin the active practice of medicine in Houston county, and was continuing to so practice in violation of his contract; that appellant’s agreement not to practice medicine in Houston county was the principal consideration moving plaintiff to execute the contract and assume and discharge the obligations thereby incurred by him; that appellant is insolvent, and plaintiff' would be unable to collect any judgment for damages he might obtain against appellant; and that plaintiff in order to obtain judgment for the losses sustained by him by reason of appellant’s violation of his contract obligations would be forced to institute a multiplicity of suits at great cost and inconvenience. The prayer of the petition is for a temporary and permanent injunction restraining the defendant from practicing medicine in Houston county.

The defendant answered by general and special exceptions to the petition, and general denial, and by special pleas, which are thus stated in substance in appellant’s brief: “That the parties plaintiff and defendant made the contract as copied in plaintiff’s petition and served as partners as alleged therein ; that said Hospital was purchased as set out in said contract; that plaintiff did agree to assume the said indebtedness of $19,000.00, and did agree to pay defendant a salary of $5,-000.00 for his services between Feb’y 8, 1927, and Feb’y 1, 1928, or execute a note with satisfactory security for any balance unpaid by Feb'y 1, 1928, the same amounting to $2,600.00, which was never done; that it is not true that plaintiff had paid defendant all the compensation due him under said contract, but still owes him about $2,600.00; that the real consideration for said contract was the payment to defendant the salary expressed therein, aggregating $5,000.00; that it is not true that plaintiff had ever complied with his obligations as set out in said contract; that the suit was brought on the assumption and the allegation that the plaintiff has so fully complied with his contract as to be entitled to an injunction, but which was not a fact, as shown by the pleadings of the plaintiff himself; that by the unlawful acts and conduct of plaintiff the defendant was damaged in the sum of $3,000.00 as actual damages and $5,000.00 as exemplary damages, all of which damages were for unlawfully suing out said injunction and the ’ oppressive use of it; that because of the failure of defendant to comply with said contract as alleged in said answer, plaintiff rendered himself wholly not entitled to said injunction and forfeited the same and left defendant without any legal obligation to comply with the same; that plaintiff has resided in Houston County for 30 years and .built up a large and lucrative practice, and established the said Hospital, and it would be unjust to deprive him of the fruits thereof; that said contract is null and void in that it is in restraint of trade and tends to create a monoply; that said contract is also void because it is unlimited as to the matter of time it is to exist, and goes further than is necessary to protect plaintiff, and becomes oppressive and unreasonable and injurious to the public interest and is void on grounds of public policy; and defendant prays according to the facts as alleged in his said answer, that said injunction be not made permanent and that he have judgment for his said $2,-600.00', for his damages, and for all costs and general and special relief, etc.”

The trial in the court below with a jury resulted in an instructed verdict in favor of plaintiff for the- writ of injunction asked in his petition, and in favor of defendant for the sum of $2,600 with 6 per cent, interest from February 1, 1928. Upon return of such verdict judgment was accordingly rendered.

There is no conflict in the evidence upon any material issue in the case.

- TJie execution of the contract mentioned in the pleadings was admitted by the defendant. The only defensive contentions presented by appellant against his obligations under the contract are:

First, that the contract being clear and unambiguous, parol evidence was inadmissible to vary or change any of its terms;

Second, that the contract is in restraint of trade, tends to create a monoply, is unreasonable, oppressive, and unenforceable; and

Third, that by the terms of the contract appellee was required to pay appellant the $2,600 balance of his yearly salary on February 1, 1928, and having failed to make the payment on that date, is not entitled to maintain this suit.

The evidence upon which each of these contentions is based is undisputed.

Appellant’s agreement not to practice his profession in Houston county after February 1, 1928, is thus stated in the contract: “Said W. W. Latham hereby agrees and obligates himself to move permanently from Houston County not later than February 1, 1928, and *1085 to no longer practice medicine in or near tlie City of Crockett after that date. ⅜ ⅞ * ”

In explanation of this wording of the contract plaintiff alleged: “The plaintiff represents to the court that the true contract and agreement as made between plaintiff and defendant was and is that defendant from after February 1, 1928, would not practice medicine in Houston County, Texas, unless he might practice there under other terms of said contract not necessary to mention here; that in drafting said contract, the terms were stated by both plaintiff and defendant to an attorney so that he might draft it accordingly. That said attorney in drafting the contract so stated same as to require the said Latham to move permanently from Houston County not later than February 1, 1928.”

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Bluebook (online)
17 S.W.2d 1083, 1929 Tex. App. LEXIS 633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/latham-v-butler-texapp-1929.