Flowers & Peagler v. W.T. Smith Lumber Co.

• Court: Alabama Supreme Court
• Writing for the Court: ANDERSON, J.
• Citation: Flowers & Peagler v. W.T. Smith Lumber Co., 157 Ala. 505, 47 So. 1022 (Ala. 1908)
• Decision Date: 15 December 1908
• Parties: FLOWERS & PEAGLER v. W. T. SMITH LUMBER CO.

47 So. 1022

157 Ala. 505

FLOWERS & PEAGLER v. W. T. SMITH LUMBER CO.

Supreme Court of Alabama

December 15, 1908

Appeal from Circuit Court, Butler County; J. C. Richardson, Judge.

Action by Flowers & Peagler against the W. T. Smith Lumber Company for breach of contract. From a judgment for defendant plaintiffs appeal. Affirmed.

After reciting the names of the parties and the enterprise in which they were engaged, the contract recites that whereas, it is of very great benefit and advantage to both of said parties in the operation of their said railroad and mills, and in carrying on their business generally, that they should not come in conflict with each other in the purchase of lands and timber for their respective mills, or in the location of their respective railroads; and whereas, it will be of mutual benefit to said parties to have an understanding and agreement, to be faithfully kept and performed by each of said parties, that one of said parties shall not buy, own, or hold, either for himself or for another, any timber or logs or lands, or operate or be interested in a mill, or build own, or operate, or be interested in, a railroad, on the other side of said land; and whereas, said parties desire to avail themselves of all the benefit which could result to them by reason of an understanding and agreement: Now therefore, in consideration of the premises, and of the sum of $10 cash in hand paid, by the parties thereto to the other party, etc., the party of the first part (the defendant) shall not buy, own, hold, or be interested in any land or timber, nor cause the same to be bought, and shall not build own, or operate any mill, nor build, own, or operate any railroad north of said line, but in conducting and carrying on its said business, and in purchasing land, timber, and logs, and in constructing rail or other roads, mills, etc shall confine itself to the territory altogether south of said land. The same covenants and stipulations are made with respect to the same operation by the parties of the second part (the plaintiffs) to the north side of the land. The line intended to be designated began at the southwest corner of section 13, in township 8, range 14, in Butler county, and extended according to the land line in an easterly direction to a point on the Central Railroad in Crenshaw county, a distance of over 20 miles. The contract also contained the stipulation that for each and every violation of this contract the party violating the same shall be due to the other party, as liquidated damages, a sum equal to one-half the value of the property purchased or caused to be purchased, owned, or held in violation of this contract, and in any suit between the parties, their heirs, successors, or assigns, for a breach of violation of this contract, it shall only be necessary to prove this agreement and violation thereof, the property purchased or caused to be purchased owned, or held contrary to the terms of this contract, and the value thereof, and plaintiff shall be entitled to a judgment for one-half the value thereof. This contract is set out in...