Lawrence v. Times Printing Co.
Lawrence v. Times Printing Co.
Concurring Opinion
I concur in the judgment of affirmance, but not in what is said concerning the effect to be given the contract referred to in the opinion as the Associated Press contract. If, as is suggested in the opinion, its character is one “in the nature of a personal contract for services,” then it does not fall within that class of contracts which are obnoxious to the law because made in restraint of trade and commerce.
Concurring Opinion
I concur in the affirmance of the judgment for the reason that the description of the franchise sold is not sufficientlv definite.
Opinion of the Court
The opinion of the court was delivered by
The complaint states substantially the following facts: That the defendant,. The Times Printing Company, was incorporated in March, 1897; that the defendant, the Associated Press, was at all times mentioned a corporation created under the laws of Illinois and authorized to transact business in this state; that in May, 1886, in the city of Seattle, a daily and weekly newspaper was-established, named “The Seattle Press,” and at the same time there was published in said city another daily and' weekly newspaper called “Seattle Times;” that the two-papers were published and circulated in Seattle, under separate managements, from the time of their establishment until February, 1891, when the proprietors of The Seattle Press purchased the Seattle Times, and they were consolidated into one newspaper of daily and weekly circulation by the name of “Seattle Press-Times;” that in February, 1895, The Seattle Press-Times Company was incorporated under the laws of the state, and became the owner and publisher of the Seattle Press-Times, and such company also became the owner of the entire plant, machinery, and materials used in the publication of the Seattle Press-Times, including the good will, patronage, and circulation of the newspaper, and all the news franchises and privileges belonging to the same ; that in June, 1895, the name of The Seattle Press-Times Company was amended in its. articles of incorporation to “The Times Company;” that the publication of the Seattle Press-Times was continued in the same general style of type and appearance until May, 1895, when the name of the paper was altered by omitting the word “Press,” and using therefor the name “The Seattle Times;” that the subscription list and circu-
“Ho membership contract shall be finally executed or binding upon the association until it shall have been approved or ratified by the executive committee or a majority of the members of the board of directors.”
It is agreed that the Associated Press will not furnish any news report to any other paper in the territory described in the contract without the consent of the contracting newspaper, and the contracting newspaper agrees to furnish the Associated Press the news in the territory described in the contract in accordance with, the provisions of the by-laws of the Associated Press. It is also agreed between the parties that the franchise or privilege granted by the contract to the newspaper may be transferred with the newspaper, provided the new proprietor énters into a new contract with the Associated Press, similar to the existing contract. The defendants each appeared separately, and filed a general demurrer to the complaint,which was sustained.
1. The principal object sought is to compel the defendant, the Associated Press, to furnish its news reports to the plaintiff. It does not appear that plaintiff assumes that he is now, or has been, the publisher of a newspaper in Seattle. Indeed, he complains that he cannot publish a newspaper without the news reports. The observations tof the court in Metropolitan National Bank v. St. Louis Dispatch Co., 36 Fed. 722, would seem to be pertinent here:
“ It is evident that the stock in .question [the Western Associated Press membership] is not property of an ordinary character, such as may be transferred at will by the owner. The bill shows that it is only vendible to persons or corporations who are engaged in publishing a news
It is maintained by counsel for the defendants that the contract with the Associated Press is such a peculiar personal right that it is not subject to sale under mortgage foreclosure; that it is in the nature of a personal contract for services, and not transferable without the mutual consent of the parties. Apparently, it seems, there are elements of personal service entering into the contract. The Associated Press furnishes its news reports. The proprietor of the newspaper so furnished, under the contract, must furnish to the Associated Press the news in the territory described. It appears here clearly, however, that the peculiar value of the contract in controversy between the plaintiff and The Times Printing Company is based upon the allegation that the right to receive the news reports is exclusively given or conveyed to one newspaper proprietor. If the contract be in the nature of one for personal services, as suggested, but not here determined, it could not reasonably be said to be the subject of a mortgage or sale; and the court does not look favorably upon the contention that it is an exclusive contract. Contracts in restraint of commerce and trade have always been obnoxious to the law, and fair reasoning and correct legal analogies would seem to imply that in so important a field as news and intelli
2. Plaintiff shows as his right to maintain this action the sheriff’s certificate of sale of certain scheduled corporeal property, together with a newspaper, good will, and franchises thereof. The contract with the Associated Press is assumed by plaintiff to be included within the word “franchises” named in the certificate of sale. It is apparent that the term “franchises” is not used in the mortgage or certificate of sale in the legal sense, or in its ordinary popular sense. The term, in a legal sense, contains the element of a grant or immunity, privilege, or exemption by public or quasi-pub] ic authority. It may sometimes be used in a popular sense as a privilege. Our statutes (Laws 1891, p. 96) provide a method for the sale of franchises, but we cannot agree with counsel for defendants that the franchise mentioned in the chattel mortgage comes within the terms of the statute. It is stated, however, in the complaint, that within the term “franchises” is included the contract that existed between The Times Company and Associated Press for the report of the news. The term, then, as used, must be assumed to have a particular trade meaning, and not be taken in its ordinary and accepted signification. It seems at the sale made by the sheriff there was offered to bidders the “franchise” of the Press-Times paper, and it was offered separately, the amount bid therefor being $5. There was no specification of what this term meant. We do not suppose the general public knew what it meant. It was not even specified how many franchises were offered, or what they were as belonging to the paper.
In General Electric Co. v. Wightman, 39 N. Y. Supp. 420, it was adjudged that a sale of “ehoses in action”
“To hold that choses in action pass under general words, in judgments and conveyances, would cause confusion and uncertainty in respect to the property which the purchasers under foreclosure sales acquire. Judicial sales must describe with reasonable certainty the property sold.”
In Dean v. Biggs, 25 Hun, 122, it was adjudged that a balance unpaid on a subscription to the stock of a corporation was not covered by a mortgage purporting to convey the right of way of the railroad and its other property, chattels, and things pertaining thereto, its chartered rights, privileges, and franchises, and all the estate, right, title, interest, property and possession, claims, and awards whatsoever of the railroad, of, in, and to the same; and the decision was affirmed in 93 N. Y. 662.
In Milwaukee & Minnesota Ry. Co. v. Milwaukee & West R. R. Co., 20 Wis. 174 (88 Am. Dec. 740), it was held that a right to enforce a contract for the payment of an obligation due would not pass by a mortgage sale unless a more definite description of the same were given in the notice of sale than in the mortgage, which was “all and singular the stock, railroad or other bonds, bills of exchange, promissory notes, accounts, causes of actions, demands and choses in action of whatsoever nature.” The court observed:
“ It is averred, to be sure,, that the trustee sold at public auction all the property, rights, privileges, franchises, things in action and other things described in the mortgage. Is it permissible that choses in action, instruments in writing, should thus be exposed for sale and swept away in this loose and uncertain manner? What purchaser
The observations of the supreme court of Wisconsin would seem to be pertinent here, as it seems the purchaser of the franchises as returned by the sheriff paid $5 at the sale for a contract which is now asserted to be wortn $10,000. See, also, Smith v. McCullough, 104 U. S. 25.
It is frequently true that general descriptions of property in a mortgage may be aided by external facts and evidence, and it is not necessary to determine that, with the meaning attached to the term “franchises” in the chattel mortgage under consideration, the particular privileges or contracts included in the word might not be identified and defined as between the parties. But there must be somiething more specific at a judicial sale. It is concluded, therefore, that plaintiff, under his certificate of sale and the sheriff’s return, does not show that he holds any rights under the contract, if such existed, between The Times Printing Company and the Associated Press.
3. In the case of Metropolitan National Bank v. St. Louis Dispatch Co., 149 U. S. 436 (13 Sup. Ct. 944), there are presented many features similar to those in the case at bar. There it was observed, in reference to the good will of a newspaper:
“Undoubtedly, good will is in many cases a valuable thing, although there is difficulty in deciding accurately what is included under the term. It is tangible only as an incident, as connected with a going concern or business having locality or name, and is not susceptible of being
In that case the St. Louis Dispatch Company ceased business as the publisher of a newspaper, and on the same day another newspaper was published under the name of the “Post-Dispatch,” and it was observed by the court:
“Moreover, the good will of the Dispatch Publishing Company was from the first different from the good will named in the mortgage. . . . And if the Dispatch Publishing Company acquired on the 10th day of December, 1878, the good will belonging to the St. Louis Dispatch, for which it should have accounted,' but refused to account, then it would be only liable as for a conversion. . . . ”
At the time of the sheriff’s sale, and for some two years theretofore, The Times Company, the mortgagor, was not publishing the Press-Times, or any other newspaper, in its place, but The Times Printing Company, the defendant, was publishing a paper of a somewhat variant name. There were modifying and changing conditions occurring in the good will and circulation of the continuing publication. Without particularly noticing the separate sale of the good will by the sheriff, it is quite plain that the good will of the going concern, the Press-Times newspaper, as such, distinctively, was only an' incident after the newspaper plant passed from The Times Company to The Times Printing Company, and, whatever the injury that occurred to the mortgagee, it must be compensated in damages for conversion of the good will of the Press-Times. It does not appear that a case is presented requiring in
The judgment is affirmed.
Fullerton, J., concurs in the result.
Reference
- Full Case Name
- George G. Lawrence v. The Times Printing Company
- Status
- Published