Twin Falls Farm & City Distributing, Inc. v. D & B Supply Co.

528 P.2d 1286, 96 Idaho 351, 1974 Ida. LEXIS 453
CourtIdaho Supreme Court
DecidedDecember 20, 1974
Docket10880
StatusPublished
Cited by16 cases

This text of 528 P.2d 1286 (Twin Falls Farm & City Distributing, Inc. v. D & B Supply Co.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Twin Falls Farm & City Distributing, Inc. v. D & B Supply Co., 528 P.2d 1286, 96 Idaho 351, 1974 Ida. LEXIS 453 (Idaho 1974).

Opinions

BAKES, Justice.

This appeal involves an alleged violation of the Idaho act prohibiting monopolies and unlawful restraints upon trade and commerce, I.C. § 48-101 et seq. The district court, hearing the case without a jury, found in favor of defendant-respondents D & B Supply, Inc., Robert W. Fries, Budd L. Kehne, John O. Deringer and Margaret Kehne, and against plaintiff-appellant Twin Falls Farm & City Distributing, Inc.

The chronological sequence of events giving rise to this appeal are as follows: Twin Falls Farm & City Distributing, Inc., hereinafter appellant, an Idaho corporation, was organized in 1961 for the purpose of conducting a retail outlet for the sale of farm supplies and automotive equipment at Twin Falls, Idaho. All of the officers and directors of appellant resided in Omaha, Nebraska. It opened in 1961 with respondent Robert W. Fries acting as general manager of the store. Fries was given complete management over the operation of the store and had supervisory control over two similar stores, one of which was located in Pocatello, Idaho, and the other in Burley, Idaho. The latter two stores were not owned by appellant, but by a sister corporation. The Twin Falls business was located at 250 Main Avenue North in Twin Falls in a building leased from Charles Haight of Burley, Idaho, who was a co-owner of the building. Both appellant and respondents agreed that the building at 250 Main Avenue North was the only suitable place in Twin Falls for such a retail operation. Appellant’s lease of the premises at 250 Main Avenue North expired on December 31, 1961. Thereafter, appellant continued in the premises on a month-to-month basis, although Fries advised appellant that Mr. Haight desired a long term lease.

In May, 1963, Fries, while still employed as manager of appellant’s retail store, and without the knowledge of appellant, commenced negotiations with Haight to secure a lease on the building for himself. Fries planned to open a business similar to [353]*353appellant’s retail operation if he could acquire membership in a buying co-operative. In June, 1963, Fries contacted respondent Kehne, president of respondent D & B Supply, in an attempt to gain membership in the Mid-states Buying Co-operative of which D & B Supply was a member. Apparently that co-operative’s rules gave D & B Supply a veto power over new members in its geographical area and Kehne, exercising his veto power, refused to let respondent Fries join the co-operative. This refusal by respondent Kehne effectively ended respondent Fries’ chances of entering business for himself.

In June, 1963, respondent D & B Supply, wanting to open a retail farm supply store in Twin Falls, started negotiating through its president, Kehne, with Haight for a long term lease on the premises at 250 Main Avenue North. The evidence is conflicting regarding whether Fries told Kehne the nature of the lease arrangement between appellant and Haight while still manager for appellant; however, it is uncontroverted that Haight informed Kehne that the lease would go to the company with whom Fries was associated. When Fries was informed by Kehne that he would not be permitted to join the buying co-operative, Fries, who was still the manager for appellant, began negotiations with Kehne for the employment of Fries by D & B Supply.

On July 21, 1963, Kehne and Deringer, as officers of D & B Supply Company, signed a proposed lease for the corporation which had been prepared by Haight upon the premises at 250 Main Avenue North at a rent similar to that being paid by appellant. This lease was returned by them to Haight who held the proposed lease until September 11, 1963, when he finally returned the fully executed lease to Kehne.

On July 26, 1963, Fries sent a letter to Cornbelt Products Co., the parent corporation of appellant, in which he stated that if he did not receive certain stock in appellant which he claimed pursuant to his employment contract, he would resign as manager of the store effective August 15, 1963. Shortly thereafter, Fries informed the employees of Twin Falls Farm & City that he would be leaving the employ of Twin Falls Farm & City and that he was going to be manager of the new D & B Supply Company store which was going to open in Twin Falls, and that there would be jobs available for them at that store.

On August 5, 1963, when it became apparent to Fries that he and appellant were not going to arrive at a satisfactory interpretation of his employment contract, he terminated employment with appellant effective August 15, 1963. At appellant’s request, this was extended to August 20, 1963. Thereupon he immediately called Kehne to confirm his previously negotiated employment with D & B Supply. Fries was actually on the payroll of D & B Supply commencing August 15, 1963.

On August 20, 1963, Fries left Twin Falls Farm & City and immediately became manager for D & B Supply and began preparations to open a store for D & B Supply in Twin Falls, Idaho. Two days later, three employees of appellant left in the middle of the work day and immediately went to work for D & B Supply.

On September 11, 1963, D & B Supply took possession of the premises at 250 Main Avenue North and in mid-October, 1963, opened a retail outlet for the sale of farm supplies and automotive equipment at the former location of Twin Falls Farm & City, with Fries as the manager of the store and with the former employees of Twin Falls Farm & City.

As a result of the above events, appellant was forced to move its retail operation during the early part of September, 1963, to a less desirable location at a rent of $110.00 per month more than it had been paying for the premises at 250 Main Avenue North. In order to inform its customers of the new location of its retail store, appellant placed a sign in the window of a vacant building adjacent to the premises at 250 Main Avenue North. This sign was twice removed, at least once by respond[354]*354ent Fries, sometime after the opening of respondent’s store in October, 1963. Fries received permission to enter the building by the real estate agent in charge of the building, the agent apparently not knowing that appellant had rented the window space from the actual owners of the building.

Appellant alleged in its complaint that various acts and practices of respondents constituted unfair competition, attempted monopoly, and a conspiracy in restraint of trade within the purview of Idaho Code § 48-101 et seq. Specifically, appellant alleged that respondents conspired to procure the lease on the premises at 250 Main Avenue North, Twin Falls, Idaho; advised suppliers that appellant was no longer in business; diverted shipments ordered and intended for appellant; entered premises adjoining 250 Main Avenue North and tore down signs placed by appellant advising the public of appellant’s change of business address; and pressured appellant’s suppliers to boycott appellant and conduct business solely with respondent.

After a trial on the merits, the district court, sitting without a jury, held against plaintiff-appellant and in favor of defendant-respondents and entered findings of fact, conclusions of law and judgment. This appeal is taken from those findings and conclusions.

First, a brief discussion of the applicable statutes is in order. I.C. § 48-101 and § 48-104 provide as follows:

“48-101.

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Twin Falls Farm & City Distributing, Inc. v. D & B Supply Co.
528 P.2d 1286 (Idaho Supreme Court, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
528 P.2d 1286, 96 Idaho 351, 1974 Ida. LEXIS 453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/twin-falls-farm-city-distributing-inc-v-d-b-supply-co-idaho-1974.