Paul's Drugs, Inc. v. Southern Bell Tel. & Tel. Co., 64-331

Decision Date25 May 1965
Docket NumberNo. 64-331,64-331
Citation175 So.2d 203
CourtFlorida District Court of Appeals
PartiesPAUL'S DRUGS, INC., a corporation, and Phillip Renkoff, jointly and severally, Appellants, v. SOUTHERN BELL TELEPHONE & TELEGRAPH COMPANY, a corporation, Appellee.

Shevin, Goodman & Holtzman, Miami, for appellants.

Walton, Lantaff, Schroeder, Atkins, Carson & Wahl and Carey A. Randall, Miami, for appellee.

Before BARKDULL, C. J., and TILLMAN PEARSON and HENDRY, JJ.

TILLMAN PEARSON, Judge.

Paul's Drugs, Inc. at one time had a contract with the Southern Bell Telephone and Telegraph Company whereby the Drug Store was authorized to accept payment of telephone bills as a neighborhood collection station for the convenience of the customers of the Telephone Company. This arrangement was terminated by the Telephone Company. Thereafter, the Drug Store continued to make collections, stamp the bills paid and transmit the funds to the Telephone Company in lump sum, tegether with a list designating the customers making the payments. The telephone Company objected to the procedure but the Drug Store continued to collect from its customers.

The Telephone Company instituted a complaint in the circuit court and prayed that an injunction be entered to prohibit the continued collection by the Drug Store of payments on the Telephone Company's bills and to require the Drug Store to inform its customers that it was not authorized to accept such payments. After trial a final decree granting the relief prayed for was entered and this appeal followed. We affirm.

The chancellor has fully set out his findings of fact. They are as follows:

'1. That in November, 1960, SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY entered into an agreement with the Defendant, PAUL'S DRUGS, INC., whereby the latter was appointed as one of the Telephone Company's several neighborhood Payment Agencies, and authorized to receive and remit to the Telephone Company payments made by other subscribers for telephone service in accordance with bills or statements rendered by the Telephone Company to such subscribers. A copy of said agreement is attached to the Complaint as Exhibit 'A'.

'2. That the aforesaid agreement was concelled by the Telephone Company, effective August 3, 1962, by written notice, a copy of which is attached to the Complaint as Exhibit 'B'.

'3. That notwithstanding such termination and cancellation, PAUL'S DRUGS and RENKOFF either jointly or severally have persisted in continuing to accept payment of telephone bills from subscribers, payments so accepted being sometimes represented by the subscriber's checks and sometimes in cash.

'4. That the cash receipts have been commingled by PAUL'S DRUGS, INC., in a personal bank account maintained by PHILLIP RENKOFF, with funds collected for other utilities and companies and with personal funds of RENKOFF.

'5. That on several occasions, both before and after the cancellation of the aforesaid contract, the cash receipts have been transmitted to the Telephone Company by checks drawn against the personal account of RENKOFF, which were dishonored by the Bank on which drawn (although subsequently made good by the Defendants).

'6. That the Telephone Company advised PAUL'S DRUGS to cease and desist from accepting payments of telephone bills by subscribers. That notwithstanding such advice PAUL'S DRUGS and RENKOFF have continued to accept such payments aggregating over $6,000 in September and October of 1963, and continuing in substantial amounts to the date of this final hearing.

'7. That the reports of collections submitted by PAUL'S DRUGS to the Telephone Company are in a form necessitating additional work by Telephone Company employees. Said reports cover collections made over a period of several days and include collections made, on one occasion, ten days before transmittal.

'8. That on account of such delayed remittances by the Defendants, telephone subscribers, after having paid their accounts at PAUL'S DRUGS, but before remittance and receipt thereof by the Telephone Company, have been notified that their accounts were delinquent and it would be necessary to discontinue telephone service. This has resulted in additional work by Telephone Company personnel and has adversely affected the relations between telephone subscribers and the Company.

'9. That PAUL'S DRUGS has maintained signs within and without the store soliciting the payment of utility bills, including payments from Telephone Company subscribers. One such sign was removed on February 27, 1964, but the Defendant RENKOFF testified that other signs remain posted.

'10. That the Defendants' admitted purpose of continuing to collect telephone bills is for the purpose of attracting customers to patronize ...

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    ...18 So.2d 400, and see, Southwestern Publishing Co. v. Ney, 1957, 227 Ark. 852, 302 S.W.2d 538, 543; Paul's Drugs Inc. v. Southern Bell Tel. & Tel. Co., Fla.App., 1965, 175 So.2d 203; Nottingham v. Wrigley, 1965, 221 Ga. 386, 144 S.E.2d 749; W. P. Iverson & Co. v. Dunham Manufacturing Co., 1......
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    • March 8, 2021
    ...may be available against a competitor company in a tortious interference with contract claim. See Paul's Drugs, Inc. v. S. Bell Tel. & Tel. Co., 175 So. 2d 203, 205 (Fla. 3d DCA 1965). "To obtain a permanent injunction under Florida law, a plaintiff must 'establish a clear legal right [to t......
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