Weaver v. Jordan

362 S.W.2d 66
CourtMissouri Court of Appeals
DecidedNovember 27, 1962
Docket8110
StatusPublished
Cited by10 cases

This text of 362 S.W.2d 66 (Weaver v. Jordan) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weaver v. Jordan, 362 S.W.2d 66 (Mo. Ct. App. 1962).

Opinions

McDowell, judge.

This appeal is from a judgment in favor of the defendants on their counterclaim for $5,000 damages for violation of a restrictive covenant contained in the contract of sale of Weaver’s Restaurant by plaintiffs to defendants and in enjoining plaintiffs from engaging in the restaurant business either as owners, co-owners, employees or agents and enjoining them from leasing their real estate to anyone for restaurant purposes.

On May 1, 1959, plaintiffs and the defendants entered into a written contract for the sale and purchase of all the equipment, fixtures, stock and merchandise located in Weaver’s Restaurant at 529 Range Line in Joplin. This lease agreement is in evidence as defendants’ exhibit (I). The gross sale and purchase price was $28,000 paid; $15,000 in cash, $3,000 in Texas real estate, and $10,000 by a promissory note executed by the defendants to plaintiffs payable $300 per month and secured by chattel mortgage on the property conveyed by said contract. The real estate upon which the restaurant is located was owned by Mr. and Mrs. Smith and leased to plaintiffs. By the terms of the contract of sale plaintiffs assigned all their interest in this lease to defendants.

Defendants entered into possession of the Weaver’s Restaurant May 3, 1959, and paid the $300 monthly payments on the note sued on herein up to and including October 1, 1960, at which time they refused to make further payments for the reason that plaintiffs had violated the restrictive covenant contained in the sales contract.

On November 14, 1960, plaintiffs filed suit in the Circuit Court of Jasper County asking the court to decree foreclosure on the chattel mortgage given by defendants to secure the payment of their $10,000 promissory note and asked that the court order the property (described in said chattel mortgage) sold and the proceeds applied to the indebtedness due plaintiffs and for any deficiency if the mortgaged property did not bring sufficient funds to fully satisfy the debt and costs, and to decree the residue to be levied on other goods, chattels, lands and tenements of defendants.

Defendants filed answer and counterclaim. They admitted execution of the note and chattel mortgage and payments up to October 1, 1960.

In count I of their counterclaim they alleged, in part, that plaintiffs had violated their May 1, 1959, sales contract; that under the terms and conditions of said [68]*68contract plaintiffs sold to the defendants the good will of said business and agreed with them that they would not enter into the restaurant or any competitive food business within five miles of the location of Weaver’s Restaurant for five years.

That during the year 1959, following the sale of said business, plaintiffs purchased a lot on Range Line, approximately three blocks south of Weaver’s Restaurant and erected a building thereon for the purpose of manufacturing and selling candy. This place was advertised as “Lee Weaver’s Candy Shop” in an effort to attract their former acquaintances and customers and operated this business for a few months; that during the latter part of the summer of 1960 plaintiffs remodeled said building, purchased and installed restaurant fixtures, and on or about October 13th, opened said business designating it as the “Colonel’s Pancake House”, and have since that time operated said restaurant in direct competition with the defendants’ business and in violation of the conditions of said contract; that as a direct result of the opening and operating of said restaurant business by plaintiffs they have lost all the good will that went with the Weaver’s Restaurant; that the volume of their sales has greatly decreased, making it unprofitable for them to continue in business and to compete with plaintiffs, and that as a direct result of said acts, defendants were forced out of business and to mitigate their loss and damages leased said business to Howard and Margaret McCorkle; that they have sustained damages to their business as a going concern and in addition to the damages they have sustained as a result of the decline in the volume of their business in the amount of $5,000, its market value is now worth $10,000 less than before plaintiffs entered into a competitive business with them.

Count II of the counterclaim prayed that plaintiffs be enjoined and restrained from in any manner in engaging in the business of operating a restaurant at 842 Range Line, as owners, co-owners, employees or agents and from leasing said premises to any person, firm or corporation for the purpose of conducting a cafe, restaurant or any other competitive business.

Pursuant to plaintiffs’ motion for judgment on the pleadings, the court, on June 6, 1961, gave plaintiffs an interlocutory judgment for $5,516.35. The cause was then tried only on the counterclaims of defendants, by the court without a jury.

The gravamen of the issues lies in the following paragraph of the aforementioned contract:

“It is further understood and agreed that the Sellers are selling the good will that goes with the operation of said business and agree with the Buyers that they will not enter into the restaurant or any competitive food business within five miles of the location of the Weaver’s Restaurant within a period of five years”.

The facts are undisputed that approximately three months after plaintiffs sold Weaver’s Restaurant to the defendants, plaintiffs purchased real estate located at 842 Range Line, Joplin, Missouri, for a sum of $12,000. Between August, 1959, and December 15, 1959, plaintiffs had a building erected on this property by the Parrish Construction Company at a cost of $20,000, and it is about three blocks south of Weaver’s Restaurant. Plaintiffs designed the building for a candy business and operated it as “Lee Weaver’s Candy Store”.

In the summer of 1960 plaintiffs remodeled their place of business at 842 Range Line for the purpose of putting in a pancake house and purchased all the restaurant equipment necessary for the operation of a business known as “Colonel’s Pancake House”. Thereafter, they entered into a written lease of said premises with Charles and Helen Parrish for a period of one year beginning October 17, 1960, with option to renew the lease for additional years. This lease is in evidence as plaintiffs’ exhibit (B). It was determinable by either party upon 90 days notice. The rent reserve was $500 per month plus 80% of all charges for [69]*69telephone, water, gas and electrical services and plus 10% of gross receipts realized by the Parrishes in the operation of any business on the property.

Plaintiffs (landlords) agreed at their expense to:

(a) Furnish the Parrishes with telephone, water, gas and electrical utility services;
(b) To remodel the leased premises to Parrishes’ specifications at cost to plaintiffs not exceeding $3500.
(c) Furnish the Parrishes all cafe fixtures and equipment specified and required by the Parrishes.

4. Plaintiffs reserved unto themselves so much of the demised premises as they would reasonably require to make, display and sell any candies which they chose to manufacture, buy and sell.

Gerald V.

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

Related

Jones v. Teachers Insurance & Annuity Ass'n
934 S.W.2d 307 (Missouri Court of Appeals, 1996)
Simpkins v. Ryder Freight System, Inc.
855 S.W.2d 416 (Missouri Court of Appeals, 1993)
Schnucks Twenty-Five, Inc. v. Bettendorf
595 S.W.2d 279 (Missouri Court of Appeals, 1979)
Adkison v. Hannah
475 S.W.2d 39 (Supreme Court of Missouri, 1972)
Jeff-Cole Quarries, Inc. v. Bell
454 S.W.2d 5 (Supreme Court of Missouri, 1970)
Pointer v. Ward
429 S.W.2d 269 (Supreme Court of Missouri, 1968)
Bomson v. Electra Mfg. Co.
402 S.W.2d 7 (Missouri Court of Appeals, 1966)
Wineteer v. Kite
397 S.W.2d 752 (Missouri Court of Appeals, 1965)
Weaver v. Jordan
362 S.W.2d 66 (Missouri Court of Appeals, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
362 S.W.2d 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weaver-v-jordan-moctapp-1962.