Schonwald v. Ragains

1912 OK 210, 122 P. 203, 32 Okla. 223, 1912 Okla. LEXIS 247
CourtSupreme Court of Oklahoma
DecidedMarch 12, 1912
Docket1505
StatusPublished
Cited by51 cases

This text of 1912 OK 210 (Schonwald v. Ragains) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schonwald v. Ragains, 1912 OK 210, 122 P. 203, 32 Okla. 223, 1912 Okla. LEXIS 247 (Okla. 1912).

Opinion

Opinion by

ROBERTSON, C.

(after stating the facts as above). There is but one question in this case that demands the consideration of the court. Was it an actionable tort for Schon-wald and the Blackwell Ice Company to procure, induce, and cause, as charged in the petition, the persons who had contracts with Ragains for the purchase of his ice at retail to ignore and violate their contracts under the facts and circumstances of this case? The general verdict of the jury was a finding on all the facts as alleged in the petition necessary to sustain the judgment, so that the real inquiry may be narrowed down to the issue raised *227 by counsel for plaintiffs in error, viz., that the petition did not state facts sufficient to constitute a cause of action.

The question involved is of more than passing interest to the people of this state, the correct solution of which requires, not only careful consideration of the immediate questions primarily involved, but also.the careful consideration of the so-called “business interests” of the state, as contradistinguished from the interests of all the people of the state, for all will, in a greater or lesser degree, be primarily affected. In order to better understand the real issue as submitted to the jury by the court, we will insert the two instructions which deal directly with the question under consideration. They are as follows:

“You are instructed that' if you believe from a preponderance of the evidence that the plaintiff in this case, James G. Ragains, in the winter of 1905 made certain contracts and agreements with parties in the city of Blackwell, as alleged in his petition, to agree to purchase ice of and from said plaintiff and that the defendant, the Blackwell Ice Company, through its agent and representative, Dave Schonwald, or by Dave Schon-wald alone, with the malicious, wrongful, and unlawful intention of injuring this plaintiff, and destroying his business, and depriving plaintiff of customers for the sale of the said ice, and for the purpose of procuring purchasers of plaintiff’s ice with whom the plaintiff had contracts to disregard the same, and to refuse to carry out the contracts theretofore made with the said plaintiff, and that the said patrons did refuse, by reason of the wrongful acts of the defendants, their agents, or employees, to purchase ice of and from the plaintiff, then your verdict should be for the plaintiff and against the defendants, and each of them, for such sums as you believe will fairly and reasonably compensate him for damages sustained, not to exceed the amount prayed for in plaintiff’s petition.
“You are instructed that the material and controlling questions for you to determine in this case are: First. Was there a contract by and between the plaintiff and certain customers, as alleged in plaintiff’s petition, or any of them, whereby it was agreed by and between the plaintiff and his said customers that the said customers were to purchase of and from the plaintiff ice that he was to deliver upon his delivery of the same? Second. Were the customers of the plaintiff knowingly induced by the defendants, or either of them, or by their agents and em *228 ployees, under their direction, to break said contracts with the plaintiff, intending thereby to injure said plaintiff and derive a benefit therefrom? Third. Did injux-ies result to the plaintiff?”

If these instructions fairly and correctly state the law applicable to the case at bar, then the judgment of the. tidal court is right, and must be affirmed; for, while there are other errors assigned, such as the admission and rejection of testimony, yet it is tacitly agreed by counsel that the question first above alluded to is the real and controlling question in the case.

In Nashville, Chattanooga & St. Louis Ry. Co. v. McConnell (C. C.) 82 Fed. 65, Judge Clark said:

“It needs no extended statement to make it manifest that the right to carry on a business without interference, without fraud, and without obstruction is one of the most valuable of all rights. Indeed, in the commercial world, the right of greatest value is the right to freely carry on a lawful business without unlawful interruption. It is a substantial right, which may be protected by any remedy known to the court as fully as a constitutional or statutory right, and as fully as a right in the ordinary forms of property.”

Nims,,on Unfair Business. Competition, p. 347, in discussing this question, says:

“It has long been a recognized principle of common law that the prevention- and curbing of competition is an unlawful act. The restriction of the freedom of trade is considered to be against public policy, and injurious to general welfare. During the past few years there has been a growing demand made on courts and Legislatures that they take measures to limit the freedom of competition of the so-called trusts, and also that they take other measures to give the small dealer larger protection and freedom in competition. All these demands are made for the benefit of those zvho are not able to cope with the great powers of the commercial zvorld that have come into existence under the lazu as it nozv exists. These demands are socialistic in their nature. Freedom of competition, ifnder modern conditions, seems to lead to a monoply — the very evil which the common law sought to avoid. This condition has been reached, in part, by the application of the very rules laid down by the common law to prevent monopoly. The discussion of these questions by the courts is to be found largely in cases dealing (a) with the right which it is claimed every man has to carry on his trade or calling *229 without molestation or interruption, cases dealing principally with rights of labor organization as to boycott, strikes; lockouts, ■etc.; (b) zvith the right of persons tinder contract zvith each other as against one zvho intentionally causes a breach of that contract. Cases of this sort are not usually classed as unfair ■competition'cases, but the principles involved in them go straight to the question of fairness and honesty in business competition. If the limits to the right of one merchant to interfere with, to block, harass, and to injure, the trade of a competitor are not defined clearly, it means that the freedom of use of capital in •commercial enterprises will be hampered and restricted unnecessarily. If the business world is not certain of its rights as against those zvho intentionally and zvrongfully ■procure the breaking of contracts for their ozvn gain, public confidence in the binding force of contracts, zvhich is now none too strong, zvill be zveak-cncd.” (Italics ours.)

Legitimate competition, by fair means, is always lawful, and no cause of action accrues to one who is unable to compete with his stronger, competitor, notwithstanding his entire business be swept away by the competitive strife. But unfair competition is, and always has been, frowned upon by the law, and the trend of the decisions from Lumley v. Gye, 2 El. & B. 216, to the present time seems to sustain the proposition that it is a violation of a legal right to interfere with contractual relations recognized by law, if there be no sufficient justification for the interference. Prof.

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Cite This Page — Counsel Stack

Bluebook (online)
1912 OK 210, 122 P. 203, 32 Okla. 223, 1912 Okla. LEXIS 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schonwald-v-ragains-okla-1912.