Mento v. Lanni

262 A.2d 839, 106 R.I. 683, 1970 R.I. LEXIS 974
CourtSupreme Court of Rhode Island
DecidedMarch 10, 1970
Docket700-Appeal
StatusPublished
Cited by4 cases

This text of 262 A.2d 839 (Mento v. Lanni) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mento v. Lanni, 262 A.2d 839, 106 R.I. 683, 1970 R.I. LEXIS 974 (R.I. 1970).

Opinion

Paolino, J.

The plaintiff brought this complaint to enforce an agreement, made by the defendant in the bill of sale of a barber shop, that he would not open another barber shop under the same name or any other name within a two-mile radius of the shop sold by defendant to the plaintiff. After a hearing on the merits a judgment was entered in the Superior Court enjoining the defendant in accordance with the findings in the trial justice’s decision. The case is here on the defendant’s appeal from that judgment.

*684 On April 12, 1963, plaintiff purchased from defendant a barber shop located at 446 Branch Avenue in the City of Providence for ÍI500. 1

After the sale defendant operated a barber shop in Providence at the Wayland Manor until 1966 in which year he moved his barber shop to the Biltmore Hotel in downtown Providence. On June 22, 1968, defendant opened a one-man barber shop on Barrett Avenue, in the town of North Providence, at a location between 1% and 2 miles away from the shop which he had sold to plaintiff.

On June 27, 1968, plaintiff filed the instant complaint alleging in substance that defendant opened the Barrett Avenue shop, and is operating the same, in breach of his agreement, under the name of "Lanni’s Barber Shop.” He requested that defendant be permanently enjoined from *685 operating the new shop. At the hearing in the Superior Court plaintiff testified that at the time he took over the Branch Avenue shop it was a one-man operation; that since then his business has increased to the point where he uses three men; that he used the name “Lanni Barber Shop” [sic] for about a year after he bought the shop and then changed it to “Jack’s Barber Shop”; and that he had lost about 20 customers after defendant opened ■ the Barrett Avenue- shop.

The plaintiff identified 17 of the 20 customers, whom, he claimed, he had lost. Some of these had been regular customers of defendant before he sold the Branch Avenue shop, which the Lanni family had operated for about 75 years; some had followed him to the Wayland Square shop; some did not follow him to the Biltmore shop and returned to plaintiff; some were related to defendant. In reply to a question during cross-examination, plaintiff stated that he did not know where any of these customers went.

In his decision the trial justice noted that, although the agreement was apparently drawn by an insurance agent known to plaintiff, the provision which precipitated this action was not ambiguous. He was referring to the provision under which the seller had agreed he would not open another barber shop under the same name or any other name within a two-mile radius of the Branch Avenue premises. He stated that there was evidence that plaintiff had lost certain customers since defendant opened the new shop; that some of these bore a close relationship to defendant and others did not; that the two-mile radius was not inherently unreasonable and neither was the unlimited duration of the time restriction. He enjoined defendant from engaging in barbering within a two-mile radius of the Branch Avenue location from and after July 3, 1969, and until such time as plaintiff ceased to conduct a barbering *686 business at that address and, in the interim, he enjoined defendant from using the name “Lanni” or “Lanni’s Barber Shop” in connection with the Barrett Avenue shop. A judgment embodying those orders was entered in the Superior Court and defendant thereupon filed the instant appeal.

The defendant contends that the unlimited time restriction resulting from the failure to specify a time limit in the agreement of sale is, in the circumstances of this case, invalid as being beyond that reasonably necessary to protect the buyer. He argues that, in a situation such as the one in the case at bar, it would be unreasonable to impose a restriction upon him which is universal in time. The plaintiff agrees that the test is one of the reasonableness of the restriction under the circumstances of the particular case. He argues that it was not unreasonable under all the circumstances for the restriction as to time to be unlimited.

The only question before us is whether the trial justice erred in holding that, in the circumstances of this case, it was not unreasonable for the restriction as to time to be unlimited. In our judgment he erred.

We shall assume for the purposes of this discussion that, although not mentioned in the agreement, a transfer of the good will of the Branch Avenue business was implicit in the agreement of sale and that a portion of the $500 purchase price was in payment for the good will.

The parties have presented no case in this state, and neither have we found any, dealing with restrictive agreements in the sale of a barber shop. However, cases involving analogous problems enunciate general principles which we believe are applicable to the case at bar.

Seventy-five years ago the court was presented with a similar problem in Oakdale Manufacturing Co. v. Garst, 18 R. I. 484, 28 A. 973. That case involved a bill in equity to enjoin the respondent from violating his covenant that *687 he would not engage or be concerned in, directly or indirectly, the manufacture or sale of butterine or oleomargarine, for the space of five years from the date of the covenant. The Court granted the relief prayed for and, in discussing the reasonableness of the restriction, said:

“The test of reasonableness is the test of validity in contracts of this kind. The test is to be applied according to the circumstances of the contract, and is not to be arbitrarily limited by boundaries of time and space. There has been much discussion upon this subject, which need not be repeated. The law has advanced, pari passu, with social progress to a point of practical unanimity. The rule, now generally received, has been recognized in this State, that contracts in restraint of trade are not necessarily void by reason of universality of time, French v. Parker, 16 R. I. 219, nor of space, Herreshoff v. Boutineau, 17 R. I. 3; but they depend upon the reasonableness of the restrictions under the conditions of each case. The diversity of these conditions produces an apparent diversity of decision, and yet it will be found upon examination that most of the cases really turn upon the reasonableness of the restriction. * * * The contract is to be determined by its subject matter and the conditions under which it was made; by considerations of extensiveness or localism, of protection to interests sold and paid for, of mere deprivation of public rights for private gain, of proper advantage on one side or useless oppression on the other.” Id. at 489-490, 28 A. at 974-975.

The basic rules are stated as follows in 45 A.L.R. 2d, at pages 99 and 100:

“[1] * * * in order to be enforceable, the restrictive covenant must contain a reasonable time limitation.

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Bluebook (online)
262 A.2d 839, 106 R.I. 683, 1970 R.I. LEXIS 974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mento-v-lanni-ri-1970.