McCurry v. Gibson

108 Ala. 451
CourtSupreme Court of Alabama
DecidedNovember 15, 1895
StatusPublished
Cited by38 cases

This text of 108 Ala. 451 (McCurry v. Gibson) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCurry v. Gibson, 108 Ala. 451 (Ala. 1895).

Opinion

HEAD, J.

The bill was filed on the 30th day .of May,, 1893, to enjoin the breach of a contract, which the defendant made with the complainant in January of the same year. A preliminary injunction was granted at’ the institution of the suit, which the city court,.upon de-, fendant’s motion for a dissolution, refused to dissolve and upon final hearing it was continued in force, according to the prayer of the bill. From the final decree the appeal is prosecuted by the defendant, the assignments of error being based upon the overruling of a demurrer" to 'the bill, and a motion to dismiss for want of equity, and upon the final decree awarding the complainant re-:lief. The bill in its amended form, stripped of repetition and redundancy, and appropriately condensed, contains the following allegations:. (Í.), That on the 3rd day of January, 1893, the com-, plainant, “who is also a practicing physician” ,(to quote the exact language of the bill) purchased from the defendant, who “was and had been prior thereto engaged in the practice of his profession as a physician, in the city of Anniston, Ala.,” for the consideration of one hundred and twenty-five dollars, his horse, buggy and s medical practice, the vendor agreeing in writing, as .a part of the contract, not to practice his profession in that city for two years, and making the further stipulation that in case of failure to comply with the agreement-he would pay to the complainant, “as a forfeiture, the sum of two hundred dollars.”

(2) That the defendant, in disregard of his .agree-, ment, continued to practice medicine in Anniston ; was then holding himself out for practice, and was serving' [454]*454all who desired his services ; that he had refused to pay the stipulated sum mentioned in the contract, and was insolvent.

• (3) That when the contract with defendant was made, the complainant, upon the' faith of the same, as defendant well knew, formed a partnership with one J. B. Simpson, another physician, for the practice of medicine in Anniston, and as such partners, they entered into ..the practice there, moving their office to one formerly occupied by the defendant, who left the city.

(4) That the complainant and said Simpson, (e^ch being equally interested in any practice done by the other) were then engaged in the pursuit of their profession, when the bill was filed, although, in pursuance of an arrangement between themselves, complainant was temporarily absent from Anniston a part of the time; he at no time having abandoned the practice, in that place; and he, or his partner, having, during the whole period, Been engaged in the practice in said city.

(6) . That in consequence of the re-entry of the defendant into the practice of medicine in Anniston, the income of himself and partner had diminished about one-third .

(7) That the complainant elects to insist upon a compliance, upon the part of. the defendant, with his contract to refrain from practicing his profession in said city, for the stipulated time, and he agrees, in case the preliminary injunction be made final, not to sue defendant for damages for a breach of the contract, nor seek to enforce a payment of the sum of two hundred dollars, or any other amount.

■ The demurrer assigned twelve grounds of objection to the bill, but all of them may be embraced and treated within the following classification :

(1.) That the contract alleged was void as being vio-lative of public policy, and in unreasonable restraint of the practice of a learned profession.

(2.) That the contract expressed no adequate consideration.

(3.) That the bill showed complainant had an adequate remedy at law.

.• (4.) That it is not alleged that on January 3d, 1893, the complainant had license to practice medicine in Alabama, nor in Calhoun county, nor in the city of Annis-[455]*455ton; nor that be was able, competent or authorized, under the law, to supply the city of Anniston with the accommodations the defendant obligated himself not to supply, for the two years covered by the contract, or to make the said contract.

The essential averments of the bill were either admitted by the defendant, in his answer or testimony, or-satisfactorily established by other proof; and most of the questions that have been argued may be resolved by a consideration of the ruling upon the demurrer. The other points urged upon us, for a reversal of the decree of the city court, will be noticed when we come to refer to other matters of defense, set up, or undertaken to be brought forward by the answer.

• The questions of law raised by the demurrer have, for the most part, been so often the subject of judicial decision, in this country, and in England, that in respect of them, but little room is left for argument. It is well settled law, that while contracts, in general restraint of trade are against public policy and void; yet those in partial restraint, founded upon a valuable consideration, and reasonable in their operation, are valid and binding. 3 Am. & Eng. Enc. Law, p. 882, and cases cited in vol. 10, lb. p. 943. The test which is laid down, by which it may be determined whether a contract is’ reasonable is whethor it affords only a fair protection to the interests of the party in whose favor it is made, without being so large in its operation as to interfere with the interests of the public. — Homer v. Granes, 7 Bingham, 735, 743 ; and this test has been uniformly followed in subsequent cases.— Wood v. Johnston, 47 Conn. 175 ; Bremer v. Marshall, 19 N. J. Eq., 547 ; Whappel v. Brockway, 21 Wend. 157. A partial restraint is that which is restricted in its operation in respect to place ; and this may be made, in express terms, or it may result from a construction of the contract, when viewed in the light of the environments and circumstances surrounding the contracting parties. Moore & Handley Hardware Co. v. Towers Hardware Co., 87 Ala., 206. It is very frequently the case, that such contracts, like that made in the present instance, contain a limit as to time also, but there is a distinction between a general restriction as to place, and one as to time; it being now well settled that an agreement not to engage in a certain business, in a stated place, or within a reasonably limited territory, is not rendered invalid by a [456]*456failure to specify any limit of time for its duration.— Carll v. Snyder, (N. J. Eq.), 28 Atl. Rep. 977 ; French v. Parker (R. I.), 14 Atl. Rep. 870; Cook v. Johnson, supra, and the numerous authorities cited in each, of these cases. Contracts by professional men, such as physicians, surgeons, dentists and lawyers, when coming within the rules stated, not to practice their professions in competition with another pursuing the same.calling, have time and again been enforced ; and no distinction is made between their contracts and those of tradesmen. The suggestion that while valid in a court of law, the agreement of a person not to pursue a profession involving the exercise of skill and learning, will not be specifically performed in equity is not tenable. The doubt' expressed in an early English case, has long since been resolved in favor of the jurisdiction of the chancery court; and numerous instances are to be found of its exercise when invoked to restrain, by injunction, the breach of a .valid contract not to practice law or medicine in competition with the complaining party.

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Bluebook (online)
108 Ala. 451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccurry-v-gibson-ala-1895.