United Dye Works v. Strom

35 P.2d 760, 179 Wash. 41, 1934 Wash. LEXIS 723
CourtWashington Supreme Court
DecidedSeptember 14, 1934
DocketNo. 25045. Department One.
StatusPublished
Cited by3 cases

This text of 35 P.2d 760 (United Dye Works v. Strom) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Dye Works v. Strom, 35 P.2d 760, 179 Wash. 41, 1934 Wash. LEXIS 723 (Wash. 1934).

Opinion

Mitchell, J.

This action was brought by United Dye Works, Inc., against Sophus Strom and his wife and Liberty Dry Cleaners, Inc., for damages for breach of a contract not to engage in the wholesale cleaning *42 and dyeing business in the city of Seattle, and to enjoin further violations of the contract. Upon the trial • to the court without a jury, the action was dismissed as to the defendant Liberty Dry Cleaners, Inc., and judgment was entered in favor of the plaintiff against the defendants Strom and wife for damages already suffered by the plaintiff, and against Strom enjoining him, during the pendency of plaintiff’s operations in the cleaning and dyeing business in Seattle, from engaging, directly or indirectly, in the wholesale cleaning and dyeing business in that city. Strom and wife-have appealed.

In substance, the complaint alleges that plaintiff is a corporation with its principal place of business in Seattle; that Sophus Strom and Petra Strom are husband and wife; that defendant corporation is engaged in a general wholesale cleaning and dyeing business in Seattle; that, on February 25, 1933, Minkove, Strom & Anderson, Inc., sold to the plaintiff its business, consisting of the property, business and good will formerly owned and used by Union Dye Works, Inc.;that plaintiff’s business was wholesale cleaning and dyeing; that Sophus Strom, in addition to being an owner of stock in the vendor corporation,

“ . . . had been and was then in the wholesale-cleaning and dyeing business, and by reason of his then and past employment had become well and favorably known to the cleaning and dyeing trade, and had established a substantial good will and patronage.”

It was further alleged in the complaint that, at the date of the sale, Sophus Strom orally agreed with plaintiff’s officers and agents that he would wholly retire and withdraw from the wholesale cleaning and. dyeing business in Seattle, and would no longer, directly or indirectly, engage therein, nor compete in any manner with the plaintiff in securing and handling *43 wholesale dry cleaning in the city in the future, personally or otherwise, for any wholesale cleaning and dyeing concern other than that of the plaintiff; that this promise of defendant Strom was a principal consideration for and in connection with plaintiff’s purchase, and without which it would not have purchased the Union Dye Works, Inc., from Minkove, Strom & Anderson, Inc.

It was further alleged that Strom violated his agreement and organized the Liberty Dry Cleaners, Inc., doing business in Seattle, for and with which he is employed, and is actively working, in violation of his personal contract, to the damage of the plaintiff in the sum of thirty-two hundred dollars; and that, unless restrained, Strom will continue to violate his contract to the irreparable damage of the plaintiff. The answer consists of appropriate general denials.

Upon the appeal, Strom and his wife assign errors which they discuss as presenting three questions: (1) That the trial court erred in admitting testimony as to the alleged promise of Strom not to re-engage in the wholesale dyeing and cleaning business in the city of Seattle; (2) that the promise, if made, did not constitute an enforceable agreement, and (3) that the evidence is insufficient to show that Strom solicited the customers of the respondent.

On the first proposition, the argument is that the testimony of the oral ag'reement of Strom violates the rule against the admission of parol or extrinsic evidence to contradict, alter, add to, or vary a written contract; the introduction of the evidence being objected to at the trial upon that ground. But the rule has no application here. The written agreement in this case was between Minkove, Strom & Anderson, Inc., as vendor, and the United Dye Works, Inc., as purchaser or vendee. The testimony objected to related *44 to the separate oral contract made by Strom at the time the corporation, one-third of whose stock he owned, for a valuable consideration, sold its business to the respondent. The testimony was proper for the purpose of establishing that oral contract, which was. separate from and in addition to the written contract.

On the second proposition, it appears to be contended that no agreement was made by Strom, and it is further contended that, if one was made, it was not an enforceable contract. As to whether or not such a contract was made, there was some conflict in the evidence, but upon consideration of all of it we are satisfied that the decision of the trial court that there was a separate agreement with Strom is not only sustained by the greater weight of the evidence, but that the evidence supporting that view is also clear and convincing. The evidence, though not free from conflict, was equally clear and satisfactory as to the terms of the-agreement. It was shown, indeed not disputed, that, in Seattle, the business of wholesale cleaning and dyeing is different in kind from retail cleaning' and dyeing, the difference being here unimportant. The president-manager of the respondent testified as follows:

“Q. You and Mr. Strom threshed out this matter about his going into the wholesale business very thoroughly, did you not? A. Yes, sir — that was a distinct understanding he would not be a competitor in the-wholesale business in Seattle if we took over the Union plant. Q. And you considered it very important? A. Yes, sir, absolutely. Q. And you would not have gone into the deal without that agreement? A. No, sir.”

He also testified that Strom could have employment, in respondent’s business, and the testimony shows that, for a while after the sale, Strom was an employee in the business. Further testimony was to the effect that Strom decided and desired to be free as pro *45 prietor or owner from the controversies and competition among the wholesale cleaners and dyers in Seattle, and considered going to Tacoma or some smaller city to engage in business, or perhaps engage in the retail cleaning and dyeing business in Seattle. The testimony further shows that, on account of his experience and manner in waiting upon the trade, Strom excelled in the performance of the particular duties which he had charge of while engaged as an employee in the wholesale business of cleaning and dyeing. All of such testimony on the part of the president-manager of respondent corporation was corroborated by other witnesses.

Upon the question of the enforceability of Strom’s agreement, it may be observed generally that suits to enjoin breaches of negative covenants concerning a lawful subject matter are, of course, of equitable cognizance, whereby the validity of such contracts is gauged by the reasonableness of the restraint imposed, as necessary to the protection of the rights of the covenantee. 13 C. J., Contracts, p. 473, § 418. This same authority, continuing the discussion of the subject, says:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Colby v. McLaughlin
310 P.2d 527 (Washington Supreme Court, 1957)
Kelite Products, Inc. v. Brandt
294 P.2d 320 (Oregon Supreme Court, 1956)
Messett v. Cowell
79 P.2d 337 (Washington Supreme Court, 1938)

Cite This Page — Counsel Stack

Bluebook (online)
35 P.2d 760, 179 Wash. 41, 1934 Wash. LEXIS 723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-dye-works-v-strom-wash-1934.