Perdue v. Hughes

143 S.W.2d 684
CourtCourt of Appeals of Texas
DecidedAugust 1, 1940
DocketNo. 11137
StatusPublished
Cited by3 cases

This text of 143 S.W.2d 684 (Perdue v. Hughes) 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
Perdue v. Hughes, 143 S.W.2d 684 (Tex. Ct. App. 1940).

Opinion

MONTEITH, Chief Justice.

This is an action brought by appellant, B. O. Perdue, against appellee, Dr. D. E. Hughes, for injunction to restrain appel-lee from practicing optometry in Houston County for a period of two years from the termination of a certain contract entered into between the parties.

Appellant’s suit was based upon a written contract, wherein appellant agreed to furnish appellee optometrical equipment, heat, lights, water, and telephone service, in consideration of which appellee agreed to pay appellant 20% of his gross ■ receipts and that upon the termination of said agreement he would not practice or engage in his profession in Houston County for a period of two years from and after the termination of said contract. Appellant sought an injunction restraining appellee from the practice of optometry under the terms of said contract. On a hearing before the court without a jury the injunction sought by appellant was refused. Appellant appeals from this order.

Appellant was and is the proprietor of a jewelry store in the town of Crockett in Houston County, Texas. He was not licensed to practice optometry but maintained an optometrical department in his place of business. Dr. D. E. Hughes was a licensed optometrist. By written contract appellant leased to appellee a portion of his establishment with a complete set of op-tometrical equipment, and agreed to furnish to appellee the store space, equipment, and utilities necessary for the practice of his profession. The record shows that ap-pellee bought and paid for the merchandise used in the practice of his profession and that he had complete charge thereof, and that appellant had no control or supervision thereof, but merely leased said space and equipment to appellee. The' contract was terminated on June 3, 1940. Subsequent thereto appellee moved to other quarters in Crockett, Texas, and began the practice of his profession. This action was brought by appellant to enjoin appellee from practicing optometry in Houston County within two years from the termination of the contract.

The trial court made the following findings of fact and conclusions of law:

“1. I find that plaintiff has, for a number of years, conducted a jewelry store in the town of Crockett, in Houston County, Texas; that he is the owner of optome-trical equipment, and for a number of years he has furnished such equipment, together with office space in his jewelry store, as well as lights, telephone, heat, water, etc., to various parties who were licensed to practice optometry, and receive compensation for the above items furnished by him a percentage of the gross receipts of such optometrist so occupying such space and using such equipment. Through this method, there had been maintained in plaintiff’s jewelry store service in optometry for sev[685]*685eral years; that plaintiff was not licensed .to practice optometry in Texas.

“2. I find that defendant was duly licensed by the State to practice optometry in the State of Texas, at the times herein.after mentioned.

“3. That on the 1st day of February, A. D. 1938, plaintiff and defendant entered into the following agreement:

“This trade agreement, made this 1st day of February, A. D. 1938, by and between B. O. Perdue, herein known as first party, and Dr. D. E. Hughes, known herein as Second Party,

“Witnesseth, that the said First Party agrees to furnish the Second Party the use of the former’s optometrical equipment, location in rear of store of Perdue Jewelry Company, lights, heat, water and telephone for local service.

“Second Party recognizes the advantages of practicing the profession of Optometry in the same location with First Party and further recognizes the extensive good will already established by B. O. Perdue, and the Perdue Jewelry Company; appreciation of the items of lights, heat, telephone, water and other conveniences to be enjoyed by my locating with First Party, hereby confessed and acknowledged, I, Dr. D. E. Hughes, covenant, warrant, contract and agree that as a special inducement to Mr. Perdue to associate me with his business that upon the termination of this trade agreement I will not practice or engage in my profession of Optometry, directly or indirectly, in Houston County for a period of two years from the termination hereof.

“Second Party agrees to pay unto Second Party at the close of each business day, twenty per cent (20%) of my gross receipts for the day.

“Second Party covenants that he will conduct the business and practice the profession of Optometry during the existence of this contract with skill and the highest professional ethics will be employed.

“First Party agrees to receive Second Party’s patients with courtesy and exert reasonable efforts to retain their patronage.

“It is expressly understood that this agreement, except the above covenant not to engage in practice in Houston County, may be terminated by either party at any time without assignment of reason therefor.

“In testimony wherefor', the parties to this agreement execute their signatures in duplicate, the day and year above written.

“B. O. Perdue, First Party

“D. E. Hughes, Second Party.

“That after the execution of the above agreement, plaintiff furnished the equipment, etc., to defendant, in accordance with the terms of the agreement, arid defendant entered upon the practice of his profession, using a portion of the building occupied by plaintiff’s jewelry store, and the equipment, etc., furnished him by plaintiff, from the date of the contract until June 3, 1940, when plaintiff terminated said contract following a dispute between the two.

“4. The Court finds that immediately after the contract was terminated, defendant began the practice of optometry at another place, in the town of Crockett, in Houston County, Texas, and continued to practice his said profession until June-, 1940, when he was temporarily restrained from further practice of optometry in Houston County, Texas, upon the sworn petition of plaintiff.

“5. That upon motion by defendant to dissolve the .temporary restraining order, the same was dissolved on July 6, 1940, after hearing evidence from both sides.

“Conclusions of Law.

“1. The Court concludes that the portion of the contract above set out, as follows :

“I, Dr. D. E. Hughes; covenant, warrant, contract and agree that as a special inducement to Mr. Perdue to associate me with his business that upon the termination of this trade agreement I will not practice or engage in my profession of .Optometry, directly or indirectly, in Houston County, 'for a period of two years from the termination hereof, has the effect of placing defendant’s license at the disposal of plaintiff, who was not licensed to practice optometry in the State of Texas, which act is prohibited by law, and therefore cannot be enforced. Judgment was accordingly rendered, dissolving the temporary restraining order, and refusing the relief prayed for by plaintiff.

“Sam Holland, Judge Presiding.”

The controlling question presented in this appeal is the validity of the contract between the parties. It involves the construction of the optometry act known as Title 71, Revised Civil Statutes, including [686]*686Art. 4566 — 1, which is Section 16 of House Bill 410, Acts 1939, c. 4, p. 368.

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143 S.W.2d 684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perdue-v-hughes-texapp-1940.