Brothers v. Moore, Clemens & Co.
Brothers v. Moore, Clemens & Co.
Opinion of the Court
(after stating the case as above), delivered the opinion of the court.
The errors assigned and relied on are that the trial court erred in overruling the demurrer to the bill, and in perpetuating the injunction granted upon the proofs upon the final hearing.
In the view the court takes of the case, it is unnecessary to pass upon the questions raised by the demurrer, for, if it be conceded that the allegations of the bill, including the statements in the exhibits filed therewith and made a part thereof, state a case entitling the complainants to have the agreement specifically executed, or to have the defendants enjoined from violating the contract on their part, the proof does not sustain those allegations.
Specific performance of a contract may frequently be enforced, either by a direct decree to that effect or by an injunction restraining a party from doing what he has agreed not to do; but whether enforced in the one way or the other, the principles which govern a court of equity in the exercise of such jurisdiction are the same. 4 Pom. Eq. Jur., sec. 1431; 5 Id. sec. 271; 26 Am. & Eng. Enc. L. 15; 22 Cyc. 844-5.
The general role is, that a court of equity will not specifically enforce a contract at the suit of a party who is himself in default in respect thereto, or has himself violated its terms and obligations. Powell &c. v. Berry, &c., 91 Va. 568, 22 S. E. 362; Cox v. Cox, 26 Gratt. 305, 308-9; Bowles v. Woodson, 6 Gratt. 78; Harvie v. Banks, 1 Rand. 408; Vail v. Nelson, 4 Rand. 478; Jones v. Roberts, 1 Call 187, 200, 3 Am. Dec. 576; 26 Am. & Eng. Enc. L. (2nd ed.), p. 70; 22 Cyc. 852-3; 2 High on Injunctions (3rd ed.), sec. 1119; Fry on Spec. Perf. (2nd Am. ed.), sec. 608; 6 Pom. Eq. Jur., sec. 805.
If the only default of the complainants had been their failure and refusal for a time to credit the defendants with the fifteen per cent, of the first renewal premiums in cases where the complainants had to pay commissions or a per cent, to solicitors of insurance who had formerly acted for the defendants, it would not have been, perhaps, under the facts of this case, such a failure to perforin on the part of the complainants as would have justified a court of equity in refusing to enjoin the defendants from establishing a fire insurance agency in violation of their agreement. But this was by no means all of their default in keeping and performing the contract. It was clearly their duty under the agreement to make reasonable efforts to renew the policies of insurance which had been issued through the agency of the defendants by the line of insurance companies which the latter did. or had represented at the time the agreement was entered into. It was of the greatest importance to the defendants that the complainants should in good faith exercise reasonable diligence in the performance of that duty, since the only consideration which the defendants were to receive for the transfer of their business as insurance agents, the hooks and records and good will pertaining thereto and
The complainants, having failed to keep and perform their contract in this respect, which went to the essence of the agreement, are not entitled to have a direct decree for specific performance nor to a decree restraining the defendants from violating the agreement on their part, but the parties should be left to -their remedies at law.
We are of opinion, therefore, to reverse the decree appealed from, and enter such decree as the circuit court ought to have entered, dismissing the bill with costs and without prejudice.
Reversed.
Reference
- Full Case Name
- Grubb Brothers v. Moore, Clemens & Company
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- 6 cases
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- Syllabus
- 1. Specific Pebfoemance — How and When Enforced — Effect of Complainant’s Default — Case in Judgment. — Specific performance of a contract may frequently be enforced either by a direct decree to that effect, or by an injunction restraining a party from doing what he has agreed not to do; but whether sought in one way or the other, a court of equity will not, as a general rule, specifically enforce a contract at the suit of a party who is himself in default in respect thereto, or has himself violated its terms and obligations. The remedy does not exist as a matter of right, but rests in the sound discretion of the court upon all the circumstances of the ease; and when the party seeking performance is himself in default, it depends in a great measure upon how far the default goes to the essence of the contract whether he can have performance or not. In the case in judgment the complainants refused to perform their part of the contract in a matter which went to the essence of the contract. They purchased of defendants an insurance agency business, and, as a consideration therefor, agreed to pay them a per cent, of the first renewal premiums, which renewals they promised to use reasonable diligence to secure. After the purchase, they were unwilling to incur the usual and customary labor and expense incident to the renewal of policies of insurance, and they refused to pay the usual commissions to sub-agents formerly employed by defendants to solicit insurance, with the result of a transfer of such renewals to other companies, and the loss to the defendants of the stipulated compensation. Under such circumstances the complainants are not entitled to specific performance.