Rippe v. Doran

486 P.2d 107, 4 Wash. App. 952, 45 A.L.R. 3d 1330, 1971 Wash. App. LEXIS 1468
CourtCourt of Appeals of Washington
DecidedMay 12, 1971
Docket240-2
StatusPublished
Cited by6 cases

This text of 486 P.2d 107 (Rippe v. Doran) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rippe v. Doran, 486 P.2d 107, 4 Wash. App. 952, 45 A.L.R. 3d 1330, 1971 Wash. App. LEXIS 1468 (Wash. Ct. App. 1971).

Opinions

Petrie, C.J.

Plaintiffs’ appeal presents a problem in contract interpretation as to the geographic limitations upon a covenant not to compete. Defendant’s cross-appeal challenges the jurisdiction of a court, after confession of judgment, to award damages for reasonable rental value of the property detained 'after notice of forfeiture had been given, in a forfeiture action which did not seek such damages.

In May, 1964, plaintiffs Rippe, as lessees of premises at 1505 Broadway, Vancouver, Washington, and as owners of a car wash business located on those premises, sublet the premises and sold the business, including building, equipment and goodwill under a conditional sales contract to defendant, Doran. The contract contained a forfeiture clause entitling Rippe to possession of the property in event of Doran’s default, and also a noncompetition clause, constituting a separate and severable covenant, as follows:

The Sellers agree not to enter into any form of competitive business in the City of Vancouver, Washington for a period of five years from this date, and the Purchaser’s agreed damages for breach of this covenant is $10,000.00.

(Italics ours.)

During negotiations, the parties had not discussed the geographical limits of the covenant not to compete, but Rippe had advised Doran that customers had come from throughout Clark County and beyond. The noncompetition clause was inserted in the contract at Doran’s request, but the specific language appears to be that of the attorney, selected by a real estate broker, who drafted the documents.

[954]*954In March, 1966, Rippe opened a coin-operated automatic car wash business just north of 78th Street in Hazel Dell, which is an unincorporated area immediately adjacent to and north of the city limits of Vancouver, but well within the Vancouver metropolitan area. Rippe’s business was competitive with the business he had previously sold to Doran.

In August, 1967, Rippe filed a complaint for forfeiture of conditional sales contract, alleging that Doran had defaulted on the contract. Doran filed an answer, denying the default, and a cross complaint, alleging Rippe had breached the noncompetition covenant of the contract and seeking the damages agreed to in the contract.

Negotiations and a pretrial conference having failed to produce any substantial result, the matter was tried to the court on July 1, 1968, At the commencement of trial, Doran, through counsel, declared that he had no objection to entry of an order of forfeiture; trial proceeded on Doran’s cross complaint. At the close of testimony and prior to any ruling of the court, Doran suggested to the court that a matter, mentioned in conference but upon which no testimony had been taken, should be placed on the record — disposition of gasoline pumps and storage tank, concerning which Doran had a contractual obligation to another party, but which had not been a subject in either the conditional sales contract or the sublease. Rippe, on the other hand, took the position that he wanted possession of the premises, business and equipment as is, and that the matter of disposition of the pumps and tank could not be litigated in this action; and further declared that he could see complications and side issues which might take further evidence to decide.

After listening to argument of counsel, the court made an oral ruling that (1) directed entry of the decree of forfeiture against Doran together with attorney fees; (2) declared Rippe had breached the noncompetition covenant and awarded damages to Doran in the amount agreed to in the contract; and (3) directed Rippe to inform the court [955]*955and Doran in 30 days as to his desires regarding disposition of the pumps and tank, i.e., whether or not he desired them removed from the premises, to the end that Doran’s contractual rights and responsibilities with the other contracting party might not be jeopardized 'as a consequence of repossession of the premises by Rippe.

The record does not reflect that Rippe advised the court of any desires regarding the pumps and tank. Instead, on July 8, 1968, Rippe filed simultaneously a motion and affidavit for writ of assistance and also a motion for reconsideration or for new trial. The affidavit attached to Rippe’s request for a writ of assistance declares (1) that he entered the premises at 1505 Broadway on July 5, 1968, to inspect and inventory the property subject to the conditional sales contract which had been declared forfeit by the court; (2) that he had been threatened with violent ejectment from the premises; (3) that Doran continues to use and operate the equipment and to take the profits therefrom; (4) that property subject to the contract in the approximate value of $2,000 could not be found on the premises; and (5) that Rippe has had to pay the rental on the basic lease for the month of June, 1968, and has been called upon to pay the July rental as well. The writ, noting the matter alleged by Rippe’s affidavit, was summarily issued by the court, and the sheriff of Clark County was authorized and directed to restore possession of the premises to Rippe, using force if necessary.

Rippe’s motion for reconsideration or for new trial was subsequently heard by the court, apparently simultaneously with a hearing on Doran’s proposed findings, conclusions and decree; and the court entered an order on October 4, 1968, noting prehminarily the prior proceedings and their limited effect at total disposition of the matter, noting also that it was apparent there were still areas of disagreement between the parties, that additional testimony should be taken, further observing that if the matter should again be heard on a piecemeal basis there would undoubtedly still be areas of disagreement, and finally ordering “that [956]*956this matter shall be set for trial on a date certain, and as soon as possible under the circumstances.”

There never was any new trial, nor was any additional testimony taken. Instead, another series of conferences was conducted. It is regrettable that the “areas of disagreement” were never specified in any detail. However, the court did issue a memorandum opinion on June 16, 1969. In that opinion, the court (1) reasserted its prior ruling on the forfeiture and attorney fees; (2) reasserted its prior ruling on Rippe’s breach of the covenant not to compete and the assessment of damages in favor of Doran in the 'amount specified in the contract; (3) noted that in the intervening time period, the gas pumps had reverted to the owner of premises and therefore were no longer a matter of dispute between Rippe and Doran; and (4) announced that the court had been given latitude to determine reasonable rental value of the property detained by Doran after Rippe had given notice of forfeiture. Having exercised the latitude extended, the court determined that the reasonable rental value of the property amounted to $750 (subsequently reduced to $500 after still another motion) per month for each of the 11 months Doran had retained the property.

After disposing of several more motions, the trial court entered findings, conclusions and judgment on January 8, 1970. These appeals followed.

Basically, Rippe contends the court erred in finding that the competing business in Hazel Dell was located within the “City of Vancouver”, Washington as that term is used in the noncompetition agreement. The sole question then is whether or not the court properly construed that term.1

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fowler v. Bowman
381 S.E.2d 429 (Court of Appeals of Georgia, 1989)
Darnell v. Denton
669 P.2d 981 (Court of Appeals of Arizona, 1983)
R. R. Gable, Inc. v. Burrows
649 P.2d 177 (Court of Appeals of Washington, 1982)
Overmyer v. Eliot Realty
83 Misc. 2d 694 (New York Supreme Court, 1975)
Fonseca v. Hobbs
498 P.2d 894 (Court of Appeals of Washington, 1972)
Rippe v. Doran
486 P.2d 107 (Court of Appeals of Washington, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
486 P.2d 107, 4 Wash. App. 952, 45 A.L.R. 3d 1330, 1971 Wash. App. LEXIS 1468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rippe-v-doran-washctapp-1971.