Scotton v. Wright

121 A. 180, 32 Del. 192, 2 W.W. Harr. 192, 1923 Del. LEXIS 16
CourtSuperior Court of Delaware
DecidedMarch 7, 1923
DocketNo. 43
StatusPublished
Cited by14 cases

This text of 121 A. 180 (Scotton v. Wright) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scotton v. Wright, 121 A. 180, 32 Del. 192, 2 W.W. Harr. 192, 1923 Del. LEXIS 16 (Del. Ct. App. 1923).

Opinion

Pennewill, C. J.:

In addition to the loss of profits or business that the plaintiffs would have received if the defendants had not broken their contract, the plaintiffs claim damages for the permanent impairment of the good will that went with the business they purchased. This claim is based on the reduced value of the business caused by the breach of the restrictive agreement.

We think the authorities support the plaintiffs’ claim, but the question is, how shall such damage be proved?

Some of the authorities that seem to be opposed to the plaintiffs’ contention are based on the impossibility or great difficulty of making actual and positive proof of good will as a separate and independent element of damage. We are of the opinion that the impairment of good will cannot be shown as an independent fact by opinion testimony.

If it was impaired at any time between the breach of the agreement and the issuance of the injunction, and the jury are convinced of that fact from all the facts and circumstances of the case, as shown by the evidence, it should be considered by them in determining the damages that plaintiffs have sustained on account of defendants’ violation of their covenant. But we do not think the loss or impairment of good will can be shown as a separate and independent element of damage, because any testimony offered for such purpose would be opinion testimony, so speculative and uncertain as to be of no probative value.

For the same reason we hold, that the opinion of a witness is not admissible to prove diminution in the value of plaintiffs’ [197]*197property or business. Such diminution must be proved by the facts and circumstances properly admissible in evidence, and, if so proved, should be considered by the jury in ascertaining the damages the plaintiffs have sustained by the defendants’ default.

In the reduction of plaintiffs’ claim for damages, the defendants introduced considerable testimony to show that when plaintiffs took over the business, they increased the price of labor; that new cars plaintiffs had for sale were used by them for pleasure trips; and that plaintiffs were not attentive to their business, and did not at times keep business hours.

Plaintiffs’ Prayers.

(1) Although the damages may be difficult of exact computation, the Scottons are not precluded from recovering because of that fact. 12 R. C. L. 996, 997.

(2) The damages in this case are twofold: first, the permanent impairment of the good will of the place of business purchased by the Scottons, and second, the losses in business which the Scottons have sustained by reason of the breach of contract.

(3) The jury must first determine whether the market value of the place of business which the Scottons purchased from the Wrights has depreciated in value by the breach of covenant. If so, this is one item of damage to be allowed to the Scottons.

(4) A large portion of the marketable or assessable value of a business often consists in the good will maintained by it and if the jury believe that the good will has been permanently impaired, you must estimate the impairment.

(5) Any uncertainty is not to work a denial of justice to the parties who may have been wronged; the damages must be ascertained from all the circumstances as best they may.

(6) The amount of damages is not limited by the profits which the Wrights have realized in violation of their agreement.

(7) The profits made by the Wrights should be considered under all the facts and circumstances in determining the Scottons’ losses.

(8) If the plaintiffs’ profits have been reduced a certain amount by the defendants’ competition, they should receive that [198]*198sum which is lost; and, if in addition to that the good will of the business is worth a certain amount less than it would have been but for the defendants’ illegal act, the plaintiffs should recover this stun also. Salinger v. Salinger, 69 N. H. 589, 48 Atl. 558.

(9) If the plaintiffs have overestimated the amount of business transacted by the defendants or the profits realized from the business by the defendants, the burden is upon the defendants to make the evidence more exact or to correct it if it was untrue.

(10) In estimating the profits of the defendants, the jury must not include any salaries or living expenses and rents received by them as such salaries and living expenses resulting to them from the breach of their contract, and no man can take advantage of his own wrong.

(11) In this case the wrong done by the Wrights is such as they have chosen to make it; hence, theirs is the loss which may arise from uncertainty pertaining to the nature of it, and the difficulty of accurately estimating the results of their own wrongful act.

(12) It is not to be expected that the plaintiffs can prove a precise sum abstracted from their profits by a violation on the part of the defendants but the jury should be careful to find sufficent damages to admonish the defendants that ‘ ‘honesty is the best policy.”

(13) The court takes judicial notice of the fact that at least three factors enter into the purchase of a motor vehicle: original cost, cost of upkeep, and depreciation, and the court takes judicial notice of the fact that the sale of Ford motor vehicles competes with the sale of other motor vehicles.

(14) The defendants had no right to engage in the Ford business and have broken their contract by so doing and if the jury believe from all the facts and circumstances that the Scottons would have secured the Ford agency they must assess its value to them and consider such value as an item of loss to the Scottons.

(15) The verdict must be for the plaintiffs, and should be in a sufficient sum to cover the losses sustained by the plaintiffs by reason of the wrongful competition of the defendants.

[199]*199Defendants’ Prayers.

(1) The measure of damages in a case like this, generally expressed, is the value of the business lost to the buyer, by reason of violation of the agreement by the seller and not the profits made by the seller. Gregory v. Spieker, 110 Cal. 150, 42 Pac. 576, 52 Am. St. Rep. 70.

(2) The measure of damages is the difference between what the trade of the Scottons has been worth since they have been in business and what it would have been worth, as shown by evidence, if the Wrights had not engaged in business. Moorehead v. Hyde, 38 Iowa 382; Moorman v. Parkerson, 131 La. 204, 59 South. 122, Ann. Cas. 1914A, 1150.

(3) The measure of damages is not the difference between the profits made by the Scottons before the Wrights re-entered business and the profits made by the Scottons after the Wrights had re-entered business; but only so much of this difference, if there be any shown, as was lost by the Scottons because of the fact that the Wrights did re-enter business; and certain proof of how much was thus lost by the Scottons devolves upon them. Peltz, et al., v. Eichele, 62 Mo. 171; Howard v. Taylor, 90 Ala. 244, 8 South. 36; Dose v. Tooze, 37 Or. 13, 18, 60 Pac. 380.

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Cite This Page — Counsel Stack

Bluebook (online)
121 A. 180, 32 Del. 192, 2 W.W. Harr. 192, 1923 Del. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scotton-v-wright-delsuperct-1923.