Ryan v. Hamilton

68 N.E. 781, 205 Ill. 191
CourtIllinois Supreme Court
DecidedOctober 26, 1903
StatusPublished
Cited by38 cases

This text of 68 N.E. 781 (Ryan v. Hamilton) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ryan v. Hamilton, 68 N.E. 781, 205 Ill. 191 (Ill. 1903).

Opinion

Mr. Justice Ricks

delivered the opinion of the court:

Appellee contends that the judgment of the Appellate Court should be upheld, and that the complainant below, as a matter of law and justice, is not entitled to the relief he prays, and to support his position argues that there is not sufficient consideration to support the contract in question; that it is not sufficiently fair and certain to be enforced in equity; that if appellant has any remedy it is only a legal one and not enforceable in equity.

The principles of law applicable to this case are the same as those governing the specific performance of contracts in restraint of trade. That contracts in general restraint of trade are generally held to be illegal is beyond controversy. But the rule admits of well defined exceptions, and among the exceptions are contracts of the kind and character presented in this case. Contracts of this class, where the limitation as to territory is reasonable and there exists alega! consideration for the restraint, are valid and enforceable in equity, and in such cases relief by injunction is customary and proper. In all such cases it is not the business of a court to inquire whether the consideration is adequate or of equal value to that which the party loses by the restriction. In cases of this character it is impossible for courts to tell how valuable to the complainant or how injurious to the defendant may be the restraint sought to be imposed. It is sufficient to uphold such contracts if the court arrives at the conclusion that there is, as a matter of fact, some legal consideration; but the adequacy of the consideration is within the exclusive dominion of the parties where they contract freely and without fraud. Linn v. Sigsbee, 67 Ill. 75; Hursen v. Gavin, 162 id. 377; Doty v. Martin, 32 Mich. 463; Eisel v. Hays, 40 N. E. Rep. 119; Beatty v. Coble, 41 id. 590; Up River Ice Co. v. Denler, 114 Mich. 296; McCurry v. Gibson, 108 Ala. 451; French v. Parker, 16 R. I. 219.

It is contended, however, by appellee, that there is no sufficient consideration to support the contract here involved. That is a matter about which there is a conflict of evidence. Ryan, the appellant, contends that Hamilton, the appellee, agreed with him that if he (Ryan) would purchase the property which he did purchase, both Stewart and Hamilton would refrain from practicing in Viola and vicinity, and that both Stewart and Hamilton were to sign the same, or similar agreements to that effect. Hamilton contends that the contract signed by him was not signed, until after the purchasé made by Ryan was consummated, and then only as an accommodation to Ryan to enable him to procure a partner. We think there is considerable evidence corroborative of appellant’s contention, and the master who took and reported the testimony given in the case, and the chancellor who entered the decree in the lower court, each found that there was a sufficient consideration to support the contract made.

The evidence discloses that Dr. Stewart, of the firm of Stewart & Hamilton, was the original member of that firm and had practiced medicine in Viola for some four or five years and that appellee had been there but about nineteen months; that Dr. Stewart found that his health was not such as would justify him in remaining in the general practice and had determined to specialize, and for that purpose had in August, 1899, gone to Chicago and entered upon a course of study; that Dr. Stewart owned the building in which the business was conducted, which was situated on leased ground; that he also owned a horse and buggy, office fixtures, etc., used in the business. His determination to retire from the general practice would, of necessity, sever the partnership between him and appellee unless the business could be disposed of, so that appellee could also specialize and they in their new line arrange another partnership, and there is abundant evidence that this was appellee’s desire, as it is disclosed that as early as July, 1899, and from that time on to the time he left Viola, appellee talked to various persons who held business relations with him and Dr. Stewart, of his intention to become a specialist, and in these talks usually referred to the firm of Stewart & Hamilton, and of their future course. With these things in his mind appellee caused word to be carried to appellant, where he was engaged in practice at Cable, that the business was for sale, and early in September appellant went to Viola and met appellee, and was taken by appellee to Dr. Stewart’s house and was introduced to his wife and remained there over night. It is further shown that the appellee was then endeavoring to sell Dr. Stewart’s property, and there can be no doubt from a reading of the evidence that he was holding out to appellant that if he should become the purchaser of that property he would, succeed to the business of the firm. No arrangement was made at that time, except that it was understood that appellant should return to Viola in a short time and participate in the practice with appellee, in.order to determine its extent and character before he should conclude to make the purchase, and in September he did come and remained about two weeks, until he became sufficiently acquainted with the business to warrant him in making the purchase. Appellant and appellee continued negotiations until it was practically agreed that appellant should pay $800 for the property, with the condition that both Drs. Stewart and Hamilton should agree that if appellant did become the purchaser they would not again resume practice in Viola or in-the vicinity thereof. When the negotiations reached this stage the appellee turned appellant over to Mrs. Stewart, who still resided in Viola and who was acting for her husband, and in view of the fact that the house was upon leased premises she agreed to deduct $20 from the price that he had agreed to pay and accept $780 for the property, and caused papers to be executed transferring the property, and the lease for the lot upon which the house stood, to appellant, and also sent an agreement in practically, if not identically, the same words to be executed by Dr. Stewart as the agreement of Dr. Hamilton which forms the basis of this suit. When these papers were returned they were put in the hands of appellee, and appellant then gave his notes for the $780, which were delivered to appellee and by appellee placed in the bank for Dr. Stewart', and the contract of sale and the assignment of the lease, and the agreement signed by Dr. Stewart with, reference to the practice, were turned over to appellant by appellee. Appellant testifies that at the same time appellee executed the instrument in controversy. This appellee denies, saying that it was not executed, in fact, until three or four days after that time. In his answer he states that it was not executed until December 1, but in his testimony he says that it was within three or four days of the time of the execution of the notes, and that it was not talked of until the time it was signed, and in no way entered into any part of the negotiations between him and appellant with reference to the sale of the property of Dr. Stewart. The evidence discloses that the purchase by appellant of the Stewart property was made and the notes given in view of appellee’s ceasing to practice and the business of Dr. Stewart being the business of the firm, and when speaking to persons who testified in the case with reference to his intention to leave Viola and of the desire of the firm to sell the business, Hamilton spoke of it, in a general way, as the business and property of the firm. It also appears, to one James R.

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Bluebook (online)
68 N.E. 781, 205 Ill. 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryan-v-hamilton-ill-1903.