Up River Ice Co. v. Denler

72 N.W. 157, 114 Mich. 296, 1897 Mich. LEXIS 1096
CourtMichigan Supreme Court
DecidedSeptember 14, 1897
StatusPublished
Cited by28 cases

This text of 72 N.W. 157 (Up River Ice Co. v. Denler) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Up River Ice Co. v. Denler, 72 N.W. 157, 114 Mich. 296, 1897 Mich. LEXIS 1096 (Mich. 1897).

Opinion

Long, C. J.

The complainant is a corporation doing an ice business at Port Huron. On June 26, 1889, defendant George Denler owned 140 shares of its capital stock, of the face value of $3,500. He was the general manager of the company. On that day he sold out all of his interest to Albert D. Bennett under the following contract :

[298]*298“This agreement, made and entered into between George Denier, of the first part, and Albert D. Bennett, of the second part, Witnesseth:
“In consideration of the purchase made this day by the party of the second part of stock to the amount of $3,500 in the Up River Ice Company, the said party of the second part agrees to assume the payment of a note made by George Denier, and payable to the Up River Ice Company, for $300, and dated March 1, 1889, and due on demand, and also one-half of two notes made by John G. O’Neill and George Denier, payable to Jacob Denier, for $300 each, due and payable on August 1, 1889, and on December 1, 1889.
“In consideration of the purchase and sale aforesaid, the said George Denier agrees and binds himself in the penal sum of $1,000 that he will not engage in the ice business in Port Huron, or adjacent thereto, at any time, either as principal, agent, or employé.”

It is claimed by the bill that, at the time this agreement was made, Denier also agreed with the complainant orally that he would not engage in the ice business in Port Huron, or adjacent thereto, at any time, either as principal, agent, or employé. Thereafter Bennett assigned to John Hayes all his rights under that contract, as follows:

“I hereby assign to John Hayes all my rights under the within agreement, and any right of action accruing thereunder ; any action that he may commence thereunder to be in his name, and at his own cost and expense.”

On April 13, 1896, Hayes assigned in writing to the Up River Ice Company, the complainant, all his right of action against Denier, including the right to restrain his engaging in the ice business at Port Huron, and authorizing the complainant to enforce all rights that belonged to bim directly or indirectly against Denier growing out of his agreement with Bennett and with the company. On the same day Bennett assigned to the complainant as follows : *

“Whereas, the purchase by the undersigned of $3,500 of stock in the Up River Ice Company, a corporation, was largely induced by the agreement of George Denier not to [299]*299engage in the ice business, which agreement was made in the office of the Up River Ice Company, and for its benefit, as well as for the benefit of the undersigned; and, further; in consideration of the premises, I hereby sell and assign to the Up River Ice Company all rights of action to enforce the agreement with Denier, or to restrain him from engaging in the ice business in violation thereof, authorizing the company to enforce it in its own name.”

It appears that, at the time Denier was a member of the company, John G. O’Neill owned 240 shares of the capital stock, Peter J. O’Neill 20 shares, and the balance of 140 shares was owned by Denier. John G. O’Neill was president of the company, and Denier was its superintendent. The complainant continued business after Denier went out, and, it is claimed, Denier thereafter bought out the Crystal Ice Company in that city, and again engaged in the ice business, contrary to his agreement; that, while the company was carried on in the name of the Crystal Ice Company, Denier’s name appeared as manager, and on the ice tickets which were sold appeared his name as proprietor; and, though he claimed the business was purchased by his wife, Alice Denier, the other defendant, yet in fact it was his business, and carried on for his interest and benefit. This bill was filed to perpetually restrain the defendants from carrying on the ice business in the city of Port Huron, and to restrain defendant George Denier from engaging in the ice business, either as principal, agent, or employe, in -accordance with the agreement heretofore set out. On the hearing below the court dismissed complainant’s bill. From that decree the complainant appeals.

It is contended on the part of the defendants:

1. That the contract on the part of Denier not to engage in the ice business is void, as being unlimited in time, and because given without consideration.
2. That the contract is a personal one in its nature, and enforceable only by the person in whose interest it was made.
3. That contracts of this character are enforceable only when connected with the good will of some business to [300]*300which they attach; that in this case the subject-matter was the stock transferred, and the agreement at most could but attach to this stock, which is now owned by Mr. Hayes, and not by the complainant.
4. That a court of equity must have the actual parties in interest before it to determine rights; that Mr. Hayes is the only man who could maintain this action, if anybody can, he being the owner of the stock.
5. That the manner in which the parties treated this matter immediately after its execution constituted an abandonment, and, being once abandoned, it could not be reinstated except by the joint action of the covenantor and the covenantee; that in this the defendants mean the employment of Denier by the complainant company for nearly a year after the execution of the agreement in the prohibited business; and that, therefore, there was a license on the part of Bennett, while the owner of the stock, that Denier might engage in the ice business.
6. That there is no showing that the complainant has suffered damage to the extent of $100, and that is not sufficient to call for the interference of a court of equity.
7. That no relief can be granted against Alice Denier, as the proofs show that it is her property, and she was not a party to the agreement.

There is one other claim made, and that is that the public has some interest in the matter, as the evidence shows that the entire ice on hand in all the ice houses in Port Huron, when this evidence was taken, would be needed for the use of the people.

On the hearing John Gr. O’Neill was called as a witness, and testified to the arrangement made between Denier and Bennett; that he (the witness) was president of the company. He says:

“Mr. Bennett came into the store either the day or the second day before the 26th of June, and asked me how I would like him for a partner. He said he was talking of making a trade with Denier for some stock in the ice company. * * * I said, before he made any trade he wanted to get an agreement from Denier that he would not engage in the ice business again. A day or two afterwards Bennett came in with Denier, and the matter was then spoken of by both Bennett and myself, and I drew the agreement.”

[301]*301The witness was asked:

“Independent of the writing, if anything, what was said in reference to that, — as to his not engaging in the ice business ?
“A. I, personally, as the representative of the ice company, asked Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
72 N.W. 157, 114 Mich. 296, 1897 Mich. LEXIS 1096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/up-river-ice-co-v-denler-mich-1897.