Mevorah v. Goodman

74 N.W.2d 103, 1955 N.D. LEXIS 165
Procedural entryThis page is a short order in Mevorah v. Goodman. Read the opinion of the Court — 79 N.D. 443
North Dakota Supreme Court·Decided December 19, 1955·No. No. 7460·Published

Opinion

BURKE, Chief Justice.

This action is for damages for alleged breaches of a contract for the sale of a business in Fargo known as Irving’s Tractor Lug Company. The plaintiffs were the purchasers of the business and the defendants were the sellers. The contract of sale provided that the purchasers were to have immediate possession of the business and that the sellers were to retain title to the stock of merchandise to secure the deferred payments under, the contract. Under other provisions of the contract the sellers agreed not to engage in the business of selling new tractor or farm implement parts, and not to conduct any other business in the name of Irving’s Tractor Lug Company. They agreed to furnish the buyers with an accurate list of all the creditors of the business and in connection with a provision for joint control over certain banking accounts they agreed not to refuse arbitrarily or capriciously to countersign .checks issued against such accounts. There were many other agreements contained in the contract but they do not appear material to this law suit.

It their complaint plaintiffs set forth five causes of action. For their first cause of action they alleged that defendants violated the clause of the contract prohibiting the use of the name Irving’s Tractor Lug Company by the use of bank drafts drawn in the name of Irving’s Tractor Lug Company and by using “said trade name in various other ways” to their damage in the sum of $10,000. For their second cause of action plaintiffs alleged that defendants arbitrarily and capriciously refused to countersign checks which were presented to them for signature and that they suffered damages thereby in the sum of $10,000. For their third cause of action plaintiffs alleged that defendants violated the intent and spirit of the contract by interfering in the conduct of plaintiffs’ business, by mingling new and old merchandise, by ransacking and losing plaintiffs’ records, by [106]*106abusing the privilege of using office space, by removing a partition erected by plaintiffs and by conducting a scrap metal business and other business contrary to the terms of the contract. Upon this cause of action they alleged damages in the sum of $15,000.

For their fourth cause of action, plaintiffs alleged that defendants failed to furnish plaintiffs with an accurate list of creditors and that after the execution of the contract there were received by Irving’s Tractor Lug Co. credit memoranda from all over the United States and Canada on transactions which had taken place prior to the purchase of the business by the plaintiffs and which credits the plaintiffs had to make good. On this cause of action plaintiffs alleged damages in the sum of $15,000. For their fifth cause of action plaintiffs alleged that, prior to the sale, defendants had issued numerous checks drawn upon bank accounts which plaintiffs acquired by the purchase, that these checks were presented for payment after the purchase of the business and were paid out of funds belonging to the plaintiffs to their damage in the sum of $5,000. A total judgment of $55,000 was demanded. The defendants denied generally all of the allegations of the complaint and asked for a dismissal of the action.

Upon the trial of the case, the jury returned a verdict for plaintiffs in the sum of $9,000 and judgment was entered accordingly. Defendants thereafter moved for a new trial. This motion was denied and defendants have appealed both from the order denying a new trial and from the judgment.

Upon this appeal defendants’ contentions are:

1. That the evidence is insufficient to support a recovery by plaintiffs in any amount whatsoever.

2. That the trial court erred in allowing proof of the gross volume of business done by defendants from January 1, 1950 to July 1, 1950 and the gross volume of business done by plaintiffs from July 1, 1950 to February 1, 1951 for the purpose of establishing loss of business by the plaintiffs, there being no evidence that the two periods were comparable periods or that the business was operated under conditions which were substantially the same.

3. That the trial court erred in allowing plaintiffs to show that defendants had done some business in the name of Irving’s Tractor Lug Co. when such business was not in competition with the business of plaintiffs.

4. That the trial .court erred in allowing plaintiffs to show that defendants had retaken possession of the business of Irving’s Tractor Lug Company on February 5, 1951, and allowing plaintiffs to show any acts of the defendants which took place after the institution of the present action.

5. That the trial court erred in not requiring the jury in its verdict to find the damages, if any, separately upon each cause of action.

We shall direct our attention first to the specification as to the insufficiency of the evidence to sustain the verdict. In considering this specification we must take that view of the evidence which is most favorable to the verdict. Froh v. Hein, 76 N. D. 701, 39 N.W.2d 11, Jacobs v. Nelson, 67 N.D. 27, 268 N.W. 873. Taking this view of the evidence, we think that it is clearly sufficient to support a finding that the contract in question was breached as alleged. In fact there is no serious contention by the defendants that the evidence is not sufficient in this respect. They do argue very seriously, however, that it is insufficient to sustain the verdict in the amount found or in any amount.

From our examination of the record it appears that plaintiffs did not attempt to prove damages as alleged, that is to say; separately for each cause of action. Evidence of the separate breaches was introduced but there was practically no testimony as to the amount of damage that could be attributed to each or any separate breach. The instructions of the trial court required the jury, if they found any damages at all, to find a gross amount for the several causes of action pleaded.

[107]*107Upon the first cause of action plaintiffs offered evidence to show that defendants had used the trade name “Irving’s Tractor Lug Company’1’ in violation of their agreement. This evidence was to the effect that the name appears on a sign upon the place of business used by defendants and that the defendants used drafts drawn on Irving’s Tractor Lug Company in payment for scrap metal as shown by exhibits 2 to 19. These drafts were upon bank accounts maintained by the defendants in the name of Irving’s Tractor Lug Company and caused plaintiffs no direct loss. Plaintiffs also offered evidence (exhibits 89 and 90) to show that between February 5, 1951 and February 14, 1951, defendants had sold in the name of Irving’s Tractor Lug Company new tractor parts which had a retail value of $150 and on February 5, had made a shipment of tractor parts previously ordered from plaintiffs of the value of $440. No attempt was made to prove any damage which might be specifically attributed to these sales.

Upon their second cause of action plaintiffs offered evidence to show that defendants refused to countersign checks. There was considerable dispute in tire evidence as to whether the refusal was arbitrary, but in any event plaintiffs did not show the loss of any business or other damage which could be attributed to the refusal.

Upon their third cause of action plaintiffs offered evidence of interference by the defendants in the conduct of their business.

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Mevorah v. Goodman, 74 N.W.2d 103, 1955 N.D. LEXIS 165 (N.D. 1955).

74 N.W.2d 103 (Mevorah v. Goodman) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Mevorah v. Goodman
68 N.W.2d 469 (North Dakota Supreme Court, 1955)
Jacobs v. Nelson
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Froh v. Hein
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