Wesley v. Chandler

1931 OK 477, 3 P.2d 720, 152 Okla. 22, 1931 Okla. LEXIS 633
CourtSupreme Court of Oklahoma
DecidedJuly 21, 1931
Docket19771
StatusPublished
Cited by20 cases

This text of 1931 OK 477 (Wesley v. Chandler) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wesley v. Chandler, 1931 OK 477, 3 P.2d 720, 152 Okla. 22, 1931 Okla. LEXIS 633 (Okla. 1931).

Opinion

S WIND ALL, J.

This action was brought upon a conveyance and agreement dated March 2, 1926, conveying a law practice of the plaintiffs, who were then located at Muskogee, Okla., and also conveying the property used in connection with the practice; the instrument of conveyance also expressly conveyed the good will and recited an agreement on the part of the sellers not to engage in the practice of law in the state of Oklahoma, "during the period of this agreement, except as necessary to complete and dispose of cases, contracts, and matters in effect at the time of this agreement.” The exception referred to a part of pending business, which had been expressly reserved from the conveyance, but it is impossible to understand what was meant by “during the period of this agreement,” unless we refer it, as we must, to the period during which the agreement was intended to remain in any respect executory, which would be the date of maturity of the last installment payment.

The purchaser agreed to p'ay a purchase price of $5,000, which agreement was divisible, not, however,. as apportioned to the various things done and promised by the sellers, but only as to times and amounts of installment payments, $1,000 of which was to be paid on the execution of the agreement, $2,000 on or before March 1, 1927, and $2,000 on or before March 1, 1928.

The defendant paid only the initial installment of $1,000, and after the maturity of the last installment, the plaintiffs sued to recover the balance of the agreed purchase price, alleging full performance of the agreement on their part. A demurrer was sustained to the original petition, and the same ruling was made as to a demurrer presented to an amended petition which set forth the facts as outlined above. The plaintiffs stood on the amended petition and appeal from thp order sustaining the demurrer to it.

The only question involving the merits of Lhe controversy is whether the amended petition stated a cause of action in spite of an Illegal agreement in restraint of trade.

(1) The plaintiffs apparently considered themselves entitled to enforce the express promises of the defendant. Under the common-law procedure, such recovery would be in the form of action which was known as special assumpsit, a form of case, and should the plaintiffs be held not entitled to recover on the express promises of the defendant, they would fail in the action, regardless of whether or not the facts alleged showed them entitled to other relief. That condition is strikingly described by Pollock and Maitland in their History of English Law, vol. 2, p. 559, in the following language:

“The metaphor which likens the Chancery to a shop is trite; we will liken it to an armory. It contains every weapon of medieval warfare from the two-handed sword to lhe poniard. The man who has a quarrel with his neighbor comes th'ither to choose his weapon. The choice is large; but he must remember that he will not be able to change weapons in the middle of the combat and also that every weapon has 'its proper use and may be put to none other. If he selects a sword, he must observe the rules of sword play; he must not try to use his cross-bow as a mace. To drop metaphor, our plaintiff is not merely choosing a writ; he is choosing an action, and every action has its own rulés.”

Whether certain facts constitute a cause of action is determined by the substantive law, which was not altered or modified by the Code of Civil Procedure. The Code did, however, expressly abolish distinctions between forms of actions and reduce all civil actions to one form, in which a plaintiff Is only required to allege facts constituting some cause of action. If a plaintiff does that his petition is not demurrable, and that is so although his prayer for relief may disclose that he 'is in error as to the theory of recovery. A., T. & S. F. Ry. Co. v. Rice, 36 Kan. 593, 14 Pac. 229; Turben v. Douglass, 76 Okla. 78, 183 Pac. 881; Fraley v. Wilkinson, 79 Okla. 21, 191 Pac. 156.

The petition is good if the facts alleged entitle the plaintiffs to any relief.

(2) At first agreements in restraint of trade were those made by craftsmen and tradesmen having only a localized trade or business, and at a time when a craftsman was required to follow only his trade, and at that time the laws permitted no. restraint. *24 Y. B. 2 Hen. V. pl. 26; Colgate v. Bachelor, 2 Cro. Eliz. 872 (43 and 44 Eliz.); Williston on Contracts, vol. 3, sec. 1634, and cases cited.

But it is now generally lield in jurisdictions where the courts are not bound by the arbitrary terms o‘f a statute reflecting medieval economic ideals, that, on the sale of a business, trade, or professional practice, restraint is permitted to the extent that it is reasonably necessary in time and space to protect the 'business, trade, or practice sold. Mitchel v. Reynolds, 1 Pere Wms. 181 (1711); Williston on Contracts, vol. 3, secs. 1634 and 1641, and cases cited. But this permissible scope is subject to the condition that the agreement does not tend to create a monopoly, and to the possible qualification that even though the business sold is unlimited in extent geographically, the restrictive promise must not be. Williston on Contracts, vol. 3, sec. 1641. For the citation of numerous cases tracing the development of the law with respect to agreements in restraint of trade, see Hall Mfg. Co. v. Western Steel & I. Works, 227 Fed. 588, L. R. A. (N. S.) 1916C, 620.

But, in Oklahoma, the permissible limits have been fixed by statute, rigidly, and without regard to the breadth and scope territorially necessary to protect that which is conveyed. The statutes are section 5071, 5072, and 5073, C. O. S. 1921, which read as follows:

“(5071) Every contract by which any one is restrained from exercising a lawful profession, trade, or business of any kind, otherwise than as provided by the next two sections, is to that extent void.
“(5072) One who sells the good will of a business may agree with the buyer to refrain from carrying on a similar business within a specified county, city, or part thereof, so long as the buyer, or any person deriving title to the good will from him, carries on a like business therein.
“(5073) Partners may, upon or in anticipation of a dissolution of the partnership, agree that none of them will carry on a similar business within the same city or town where the partnership business has been transacted, or within a specified part thereof.”

Among the grounds on which agreements in unreasonable restraint of trade are held illegal, are the injury to the seller and those dependent upon him by reason of the deprivation of his rights, and the injury to the public resulting from unreasonable lessening of competition, or the creation of, or the tendency to create, a monopoly. It would seem that our Legislature was concerned to an inordinate degree with the possible injury to the public.

This case is net one where the entire object of the agreement is unlawful, as in case of an intent or attempt to create a monopoly, and in cases like the one under consideration there is a willingness on the part of the court to enforce the agreement of the parties to the extent that it is divisible and the legal part can be segregated from the illegal, the legal being enforced, unaffected by the segregated illegal portion of the agreement. Pride v. Green, 16 M.

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

Related

Berry & Berry Acquisitions, LLC v. BFN Props. LLC
2018 OK 27 (Supreme Court of Oklahoma, 2018)
BERRY AND BERRY ACQUISITIONS v. BFN PROPERTIES
2018 OK 27 (Supreme Court of Oklahoma, 2018)
Oliver v. Omnicare, Inc.
2004 OK CIV APP 93 (Court of Civil Appeals of Oklahoma, 2004)
Bayly, Martin & Fay, Inc. v. Pickard
1989 OK 122 (Supreme Court of Oklahoma, 1989)
Pellow v. Pellow
714 P.2d 593 (Supreme Court of Oklahoma, 1986)
Farren v. AUTOVIABLE SERVICES INCORPORATED
1973 OK 4 (Supreme Court of Oklahoma, 1973)
Akey v. Murphy
238 So. 2d 94 (Supreme Court of Florida, 1970)
Loescher v. Policky
173 N.W.2d 50 (South Dakota Supreme Court, 1969)
Akey v. Murphy
229 So. 2d 276 (District Court of Appeal of Florida, 1969)
Brown v. Stough
1956 OK 3 (Supreme Court of Oklahoma, 1956)
Moore v. Snodgress
1950 OK 203 (Supreme Court of Oklahoma, 1950)
Lien v. Northwestern Engineering Co.
39 N.W.2d 483 (South Dakota Supreme Court, 1949)
Clare v. Palmer
1949 OK 8 (Supreme Court of Oklahoma, 1949)
Herrington v. Hackler
1937 OK 720 (Supreme Court of Oklahoma, 1937)
McAvoy v. Nelson Grain Co.
1934 OK 714 (Supreme Court of Oklahoma, 1934)
Wesley v. Chandler
1934 OK 727 (Supreme Court of Oklahoma, 1934)
Hartman v. Everett
1932 OK 460 (Supreme Court of Oklahoma, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
1931 OK 477, 3 P.2d 720, 152 Okla. 22, 1931 Okla. LEXIS 633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wesley-v-chandler-okla-1931.