Moreau v. Edwards
Moreau v. Edwards
Opinion of the Court
— This bill was filed, on the 23d of December, 1871, against the defendants, as partners under the name of Jno. W. Edwards & Co., to enjoin them, or either of them, from carrying on the saloon business in the-neighborhood of complainant’s saloon. The right to the relief sought is based upon an alleged contract, made on the 2d of December, 1871, by which the complainant bought, out the saloon business, together with the stock on hand,, fixtures, and appurtenances, of the defendants, as partners as aforesaid, on the corner of Union and Market streets, in
The defendants, by their sworn answer, deny the equity of the bill, and especially the two specific charges above quoted, and say that the business sought to be enjoined is «exclusively the business of A. S. Edwards, in which John W. Edwards has no interest.
[The Chancellor, after reviewing the facts, proceeded thus:]
To amend a written contract requires clear evidence, and the burden of proof is upon the party coming into court for .relief. It is obvious, from the foregoing analysis, that there is no direct evidence of the fact averred, and that the indirect evidence is unsatisfactory. It does not make out a ¿sufficient case for amendment of the writing, nor does it
But, it is said, James Walker proves that he and the complainant both understood that the latter purchased the good-will of the saloon bought, and it is argued that to obtain the benefit of this purchase required that the defendants, should not again go into business in the neighborhood. The argument is that a sale of the good-will, and an obligation not to again go into the same business in the neighborhood, are one and the same. But I do not so understand the law.
Good-will of a particular business is nothing more, in the absence of express stipulation, than the probability that the. old customers will resort to the old place. Crutwell v. Lye, 17 Ves. 336, 346; Austen v. Boys, 2 De G. & J. 635. The sale of the good-will does not carry with it the right to restrain the vendor from carrying on the same business inn the same neighborhood. Shackle v. Baker, 14 Ves. 468; Dayton v. Wilkes, 17 How. Pr. 511; White v. Jones, 1 Robt. 331; Johnson v. Halleley, 2 De G. J. & S. 446. The two things are entirely distinct, and, in order to acquire the-power to restrain, there must be a valid contract, or clear understanding, upon consideration, not to go into the same business in the neighborhood. Harrison v. Gardner, 2 Madd. 444; Kennedy v. Lee, 3 Mer. 440, 452; Hall v. Barrows, 4 De G. J. & S. 159.
It is also clear that, while it is competent for one partner to bind the other by a sale of the good-will of the business, it is out of his power to bind his partner by a contract not to go into the same business. No person can be bound by such a contract unless he has himself entered into it, or authorized its execution so as to bind him as an individual. If, therefore, the sale of the business and good-will did not-carry with it the right to restrain the partners from engaging;
Now the proof is that the business sought to be enjoined "by this bill was a new saloon and eating-house, established by A. S. Edwards, and that John W. Edwards has never, since the sale to complainant, engaged in such business. ‘The temporary aid he may have at times rendered A. S. Edwards, who is his father, in the conduct of the business, or as his clerk, could not be so construed, although a continuous employment, even in a subordinate capacity, would, in my opinion, be so held.
The conclusion to which I am brought, upon the facts and the law, is that the bill must be dismissed with costs.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.