Fred A. H. Garlichs Agency Company v. Anderson

• Decision Date: 17 July 1920
• Citation: 223 S.W. 641,284 Mo. 200
• Parties: FRED A. H. GARLICHS AGENCY COMPANY and FRED A. H. GARLICHS, Appellants, v. LEONARD V. ANDERSON
• Court: Missouri Supreme Court

223 S.W. 641

284 Mo. 200

FRED A. H. GARLICHS AGENCY COMPANY and FRED A. H. GARLICHS, Appellants, v. LEONARD V. ANDERSON

Supreme Court of Missouri, Second Division

July 17, 1920

Appeal from Jackson Circuit Court. -- Hon. Allen C. Southern, Judge.

Cause remanded to Kansas City Court of Appeals.

Kendall B. Randolph and Brewster, Kelley, Brewster & Buchholz for Garlichs Agency Company.

Broaddus & Crow and John S. Boyer for Leonard V. Anderson.

WHITE C. Railey and Mozley, CC., concur.

OPINION

WHITE, C. --

This suit was brought in the Circuit Court of Buchanan County to restrain by injunction the defendant from engaging in the insurance business in Buchanan County. The ease went on change of venue to Jackson County, where it was heard and plaintiffs' bill dismissed. The plaintiffs appealed to the Kansas City Court of Appeals and that court sent the case here on the ground that it was without jurisdiction on account of the amount involved. In this court a motion has been filed to remand the case to the Kansas City Court of Appeals for want of jurisdiction in this court, (202 S.W 260).

The petition states that the Fred A. H. Garlichs Agency is a corporation duly organized, and that the plaintiff Fred A. H Garlichs is the owner and holder of a majority of the capital stock of said corporation; that the defendant Anderson has been for many years in the employ of the plaintiffs in the general insurance business. It is alleged that on the 22nd day of January, 1916, the plaintiffs and the defendant entered into a contract in writing by the terms of which it was agreed that the defendant, for certain agreed compensation, should work for the plaintiffs in and about their business for a period of fifteen years and should devote his time to such business to the exclusion of other business and should at all times be faithful to the best interests of plaintiffs' business, and account for all sums of money coming into his hands; the petition then proceeds:

"Said contract further provided that, in case either of the parties to said contract should violate the terms thereof in any material respect, then the other shall have the right to immediately terminate said contract so far as it provided for the employment of said Anderson.

"Said contract further provided that in case Leonard V. Anderson should voluntarily quit the service of said company, or voluntarily terminate his contract as to his employment, or in case the said company should terminate said contract as to the employment of the said Anderson, for any material violation of its terms by him, then in such event the said Anderson will not, at any time, either for himself or as an employee or associate, in any capacity, as a partner or otherwise, with any person or persons, or corporation directly or indirectly through an office located in Buchanan County, Missouri, or at any other place, engage in any branch of the insurance business, or permit any other person, corporation, or association to use his name in any branch of such business, within the limits of Buchanan County, Missouri, for a period of five years after the termination of said contract."

The petition then alleges that the defendant did materially violate his said contract and was guilty of a breach thereof, and largely overdrew his account with the corporation, and engaged in other employment and did not devote his time to the interest of the corporation, and did not faithfully discharge his duties, etc., and continued:

"Plaintiffs say that by reason of the failure of the defendant to fulfill the terms and conditions of said contract, the said contract was by the plaintiffs terminated on the 25th day of August, 1916; that immediately after the termination of said contract, defendant did engage, and is now engaged, in the insurance business, and is soliciting insurance, and did seek and obtain employment with one John Albus in connection with the insurance business now conducted by said Albus, and has been and is now associated with said Albus in said insurance business in Buchanan County, Missouri, and has been and is writing and seeking to write and solict insurance in said county and city, to the great and irreparable damages and injury to the plaintiffs, and threatens to, and will continue so to do, in violation of his said contract, and to the injury of plaintiffs, unless restrained and prevented from so doing."

The plaintiff therefore prayed the court to issue a restraining order enjoining the defendant from engaging in the insurance business in Buchanan County until the 25th day of August, 1921.

The answer of the defendant admits the terms of the contract set out above, denies that the defendant materially violated the contract, avers that the defendant had always complied with all its...