Lufkin Rule Co. v. Fringeli

3 Ohio N.P. 131
CourtCuyahoga County Common Pleas Court
DecidedOctober 15, 1895
StatusPublished

This text of 3 Ohio N.P. 131 (Lufkin Rule Co. v. Fringeli) is published on Counsel Stack Legal Research, covering Cuyahoga County Common Pleas Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lufkin Rule Co. v. Fringeli, 3 Ohio N.P. 131 (Ohio Super. Ct. 1895).

Opinion

DELLENBAUGH, J.

The petitions and affidavits in the case at bar disclose that on and prior to the 28th day of January, A. D. 1893, the defendants, Xarver Fringeli and Lucas Fringeli, were engaged in manufacturing rules, or sundry sorts, in the city of Cleveland, Ohio. On said last date named, plaintiff bought them out.pnying 84,277.45 for all the property and good will of said partnership; and furthermore, in consideration of an- agreement on the part of said Xarver and Lucas Fringeli “not. to engage in, or be in any way,'directly or indirectly, connected with the manufacturing, dealing in, or handling of, board or log rules, lumber gauges, log calipers, pencil holders, or any of the goods which the defendants were then making.or dealing in, within the state of Ohio, or elsewhere within the United States, for the next ensuing twenty-five years.” Said purchase-money price was to be paid in installments, the last one becoming due and payable on the 1st day of March, A. D. 1894; that all said payments were duly made by the plaintiff, as agreed ; that there was a stipulation in said contract for liquidated damages, in case of breach on the part of defendants.

It is further alleged in the petition that the defendants have violated their said contract by establishing rule works in the city of Cleveland, Ohio,, and that- they are now manufacturing and dealing in the identical goods they agreed not to manufacture or deal in; that said defendants are not responsible, and that the plaintiff has no adequate remedy in law, except by injunction. The contract referred to in the petition shows that it was an agreement between plaintiff, and Lucas. Xarver, Franz and Charles Fringeli,and that the other defendants were, not parties therein, in any manner whatsoever.

It is also alleged in the petition, that it was stipulated in said contract, that there was only a limited demand for the goods, which could easily- be supplied by plaintiff, promptly, and at reasonable figures.

When the petition was filed, a restraining order was allowed upon the giving of a bond in the sum of $10,000, to continue until the further order of the court; but subsequently Andrew Fringeli and George Junglas were released from the operation of said order, so that now only the other defendants are restrained, as prayed for in said petition. Lucas, Charles, Franz and Xarver Fringeli thereupon filed their motion to dissolve said injunction as to each one of them, but all of the defendants joined in a general demurrer to the petition, upon the ground that the facts therein stated are not sufficient to constitute a cause of action. Substantially the same question is raised by both the motion to dissolve the injunction against the defendants still restrained thereby, ana the demurrer to the petition. In support of said motion, the affidavits of all the defendants, except Franz Fringeli, were read at the hearing.

Now, the evidence adduced at the hearing very clearly shows that all property purchased by plaintiff, under the contract set forth in its petition, was removed by it to the city of Saginaw, in the state of Michigan ; that plaintiff has no factory for the manufacture of rules, etc., in operation in the city of Cleveland, O., or any other place in the United States, except in said city of Saginaw, where all of its goods are made, and from which point all orders are filled. It furthermore appears from said affidavits that, after the removal by plaintiff of the entire plant of The Fringeli Rule Company, from Cleveland to the city of Saginaw, Andrew Fringeli and George Junglas, who were not parties to said contract, under the name and style of The Cleveland Rule Company, started a new plant for the manufacture of rules, etc., at No. 272 Wellington street, in the city of Cleveland, O., which they are still engaged in running. The evidence adduced at said hearing also clearly establishes the fact, that neither one of the said co-defendants of Andrew Fringeli and George Junglas,have any interest, of any sort whatsoever, either directly or indirect y, in the plant of the Cleveland Rule Company, or the profits arising from the sale of its products;; that their said co-defendants, or either of them, never, at any time, contributed, or promised to contribute, any money for the purpose of establishing the plant of the Cleveland Rule Company, nor have they, or either of them, assisted in any manner whatsoever, in the sale of its goods; that Franz and Charles Fringeli are not now, and never have been, in the employ of said The Cleveland Rule Company; that both Lucas and Xarver Fringeli have been, for many years, expert rule makers, and neither of them know any other trade or occupation of any sort, and are wholly dependent on said trade for their support, and the maintenance of their families dependent upon them ; that in July, 1895, Xarver and Lucas Fringeli entered the employ of said The Cleve[132]*132land Rule Company, as rule makers, and were paid wages at the rate of SI. 75 per day, and no more; that they continued such work at the same rate of wages until restrained by the order of this court, on or about the 11th day of September, last past.

Plaintiff failed, at the hearing, to establish by a fair preponderance of the evidence, that the starting of tho plant at No. 272 Wellington street, under the name of the Cleveland Rule Company, was the result of a conspiracy on the part of the said defendants, or that any one of the said defendants now have, or ever did have, any interest whatsoever in said business, or any part or portion of the profits arising therefrom, except Xarver Fringeli and George Junglas, who, alone, furnished all capital to start said business, and are the sole and exclusive owners thereof.

The defendants’ objection to the petition in the case at bar is based upon the alleged illegality of their covenant “not to engage in, or be in any way, directly or indirectly, connected with the manufacturing of, dealing in, or handling of, board or log rules * * * within the state of Ohio, or elsewhere in the United States, for the next ensuing twenty-five years. Manifestly, this is a divisiole covenant. Now, is the restriction covering the state of Ohio, reasonable and valid, while the other prohibition covering all territory “elsewhere in the United States” unreasonable and invalid, orare both of them in restraint of trade, and therefore illegal and void? Let us see what the law really is. if we can, in the midst of the ocean of judicial conflict of opinion, upon the question presented for our consideration in this case.

It is a well-settled rule of law in Ohio, that contracts in general restraint of trade are void; but if limited in time, and in partial restraint of trade only,they may be supported, if the restraint be reasonable, and the contract founded on a good and valuable consideration. But it also seems to be equally well settled in Ohio, that contracts in partial restraint of trade are such as operate only as to particular places and persons, as well as for a limited period of time.

In Lange v. Werk (2 Ohio St. 520), L. contracted with W. that he would not, for about three years, be connected, either directly or indirectly, with the manufacture of stearin candles in the county of Hamilton, in the state of Ohio, or at any other place in the United States, under a forfeiture of four thousand dollars, as liquidated damages. The Supreme Court, through the famous and learned Judge Ranney, who delivered the opinion, held: (l! “That all that part of the covenant which bound L.

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Cite This Page — Counsel Stack

Bluebook (online)
3 Ohio N.P. 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lufkin-rule-co-v-fringeli-ohctcomplcuyaho-1895.