Standard Oil Co. v. Doyle

82 S.W. 271, 118 Ky. 662, 1904 Ky. LEXIS 88
CourtCourt of Appeals of Kentucky
DecidedSeptember 28, 1904
StatusPublished
Cited by11 cases

This text of 82 S.W. 271 (Standard Oil Co. v. Doyle) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standard Oil Co. v. Doyle, 82 S.W. 271, 118 Ky. 662, 1904 Ky. LEXIS 88 (Ky. Ct. App. 1904).

Opinion

OPINION OF THE COVET BY

JUDGE NUNN

AFFIRMING.

This appeal is prosecuted from a judgment of the Fayette circuit court awarding appellee $2,300 in damages against the Standard Oil Company and $300 against C. B. Gilman, and involves some interesting questions. The appellants, claim that a cause of action was not stated in the petition, and the court erred in overruling their demurrer thereto. It was, in subsiance, alleged in the petition that in the spring of the year 1901, in the city of Lexington, Ky., the appellants C. P>. Gilman and M. F. Griffith, composing the firm known as the Brilliant Light Oil Company, and the Standard Oil Company, a corporation, did maliciously, unlawfully, and wickedly conspire, combine, confederate and agree together between and among themselves to estrange and alienate the acquaintances, customers, and patrons of the appellee, to ruin, oppress, and impoverish the appellee, and drive him out of the business of selling and contracting for the sale of oils, gasolines, etc., and to deprive him of all benefit and profit under his said contract with the Wilbur ine Oil Works Company. After setting out the series of wrongful acts, which we will hereafter refer to, it continued as follows; That each and all of the wrongful acts were done in pursuance of the conspiracy alleged as existing between and among the several defendants, and that by reason of such conspiracy, and of the commission of the named wrongful acts in furtherance and execution thereof, appellee had been forced to give up and [668]*668quit the business of buying, selling, and dealing in illuminating oil, gasolines, etc., in the city of Lexington and vicinity, and had been forced to cancel his contract with the •Wilburine Oil Works Company, and had been thereby deprived of all benefit and profit arising therefrom, and had been deprived of the opportunity to earn a livelihood for himself and family, and had been wrongfully prevented from engaging at his own home in the business and vocation of his life, which he had been pursuing for many years, and for which, from his long experience therewith and his extensive and favorable acquaintance in Lexington and vicinity, he was thoroughly fitted. It is contended that the acts of appellants, and each of them, as alleged, were legitimate for the purpose of building up their own business, and as against the appellee as a competitor, and if the appellee suffered any damages it was damnum absque injuria; and cite the fobowing cases as sustaining their position: Bourlier v. Macauley, 91 Ky., 136, 12 R., 737, 15 S. W., 60, 11 L. R. A., 550, 34 Am. St. Rep,, 171; Chambers v. Baldwin, 91 Ky., 121, 12 R., 699, 15 S. W., 57, 11 L. R. A., 545, 34 Am. St. Rep., 165; Brewster v. (Miller Sons & Co., 101 Ky., 368, 19 R., 593, 41 S. W., 301, 38 L. R. A., 505; Baker v. Metropolitan Life Ins. Co., 64 S. W, 913, 23 Ky. Law Rep., 1174, 52 L. R. A., 271; West Va. Transportation Co. v. Standard Oil Co., 50 W. Va., 611, 40 S. E., 591, 56 L. R. A., 804, 88 Am. St. Rep., 895; and Continental Ins. Co, v. Board of Underwriters (C. C.) 67 Fed., 310.

These cases are easily distinguished from the case at bar. The first two cases cited in effect decide that a third party can not be made responsible in damages for causing a party to a contract to break it unless force or fraud is used in accomplishing the result. In such cases, without [669]*669an allegation and proof of force and fraud, the party breaking the contract must be regarded' as having broken it of his own will, and for his own benefit, and id alone responsible to the other party to the contract in damages. The third case cited in substance decides that no cause of action arises in favor of a person who is refused the right to purchase articles from a dealer; the merchant or dealer having the lawful right to sell or refuse to sell to whom he pleases. In the case of Baker v. Metropolitan Life Ins. Co., it was sought to recover damages from the company, and ■charged it with maliciously combining and confederating ■with other companies to prevent him (Baker) from receiving employment as an insurance agent at Lexington, for the term of two years, and in pursuance of such conspiracy the Metropolitan Company discharged him from its employment without any fault on his part, and by reason thereof he had been deprived of earning his livelihood. The court •decided the case against Baker for the reason that he alleged in his petition that his employment was for an indefinite length of time, he had therefore, the right to quit whenever he saw proper, and the company had also the right to terminate the employment at pleasure; and the court also approved the principles announced in the case of Brewster v. Miller Sons & Co., to the effect that it is lawful in one to decline to enter into a business undertaking with any one. The other two cases referred to do not support appellants’ contention. In the petition a malicious conspiracy and confederation on the part of appellants to injure appellee in his business was charged; also the means! employed by them to effectuate their purpose, and the injury and damage resulting to appellee by reason of the alleged wrongs. (The charge of malicious conspiracy, ' confederation, etc., against appellants, even if true, did not give appellee a [670]*670cause of action, unless the means used by them to carry out their purpose were unlawful, and that by such means they succeeded in injuring appellee’s business. Malice and bad motive alone do not constitute a cause of action, but where one exists they only make it worse for the defendants. Undoubtedly one man may by fair methods compete with a rival until by sheer force of competition, by underselling or outbidding him, his own business is built up to the detriment and ruin of his rival. The damage in such case is in the eye of the law damnum absque injuria. But a different case is presented where one seeks not only to build up his own business at the expense of a rival’s, but to impair, and if possible, destroy, that rival’s business by the use of unlawful means by saying and doing that which he has no lawful right to say and do, in so far as it works loss and damage to his rival. It is also true whether a conspiracy formed for the purpose of injuring or driving one out •of business be lawful or unlawful, SO' far as the purpose is concerned, yet, where unlawful means are used in effectuating that purpose, the conspiracy becomes actionable, and any loss or damage suffered in consequence may be recovered.

The petition in apt words alleged the conspiracy, the means used to effectuate the purpose and the resulting loss to appellee. The remaining matter to be determined is whether the alleged means used to injure or drive appellee out of business were lawful or unlawful. If lawful, the petition did not state facts sufficient to constitute a cause of action; if unlawful it did and the lower court did not err in overruling appellants’ demurrer. That part of the petition which describes the means used to effectuate their purpose is as follows: “By wanton and malicious interference ■with plaintiff’s business and the conduct thereof in obstructing, harassing, and annoying plaintiff’s servants and em[671]

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Bluebook (online)
82 S.W. 271, 118 Ky. 662, 1904 Ky. LEXIS 88, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-oil-co-v-doyle-kyctapp-1904.