Kimble v. Independence Gas Co.
Kimble v. Independence Gas Co.
Opinion of the Court
The opinion of the court was delivered by
About February 1, 1904, the Consolidated Gas, Oil & Manufacturing Company, a corporation, sold to R. M. Snyder its rights to a supply of natural gas and its gas plant in Independence. As a part of the same transaction but by a separate writing executed later, Snyder agreed to furnish to five stockholders, of the corporation gas for domestic purposes for use in their respective residences free of cost, “as long as natural gas may be produced and furnished by said party of the first part [Snyder], his successors and assigns, to customers in said city.” Snyder furnished free gas under his contract, and so did the Kansas Natural Gas Company, to which he sold the plant. Receivers of that company on order of the Federal court sold the gas-distributing plant to J. C. Smith, who sold it to the Independence Gas Company. That company refused to continue the free service. Two of the stockholders, C. L. Kimble and C. L. Bloom, sued the last-named company —each in a separate action — seeking an injunction against the continuance of such refusal. Each plaintiff appeals from an order denying a temporary injunction.
The judgments are affirmed.
Reference
- Full Case Name
- C. L. Kimble v. The Independence Gas Company, Appellee C. L. Bloom v. The Independence Gas Company
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- SYLLABUS BY THE COURT. 1. Sale — Gas Distribution Plant — Contract to Furnish Gas to Certain Officers and Stockholders Free of Cost — Contract Unenforceable— Against Public Policy. Where the officers of a corporation negotiate a sale of its property, which includes a gas-distribution plant, and a supplemental contract is entered into between the buyer and a number of the stockholders, some of them being officers who participated in making the sale, by which as a part of the consideration he agrees to furnish them gas for domestic use free of cost, such supplemental contract is unenforceable because against public policy. 2. Same — Contract Not Binding on Purchasers at Judicial Sale. Where one buys a gas-distributing plant and as a part of the consideration agrees to supply gas free of cost to certain individuals so long as he, his successors or assigns shall furnish gas to customers in the city, and such plant is sold at a judicial sale discharged of all debts and obligations of the former owner, the purchaser is not bound by the agreement to supply free gas, assuming it to have been valid between the parties.