A
ALLEGED
UNREASONABLE RESTRAINT OF TRADE.
DODWELL & CÒ, LD,
2.
THE HONGKONG DAILY PRESS, WEDNESDAY, OCTOBER 11TH, 1905.
£1,000 should be paid to the defendunt on the understanding that the business during the years of 1902, 1903, unl 1904 should net them $25,000 per annum otherwise the amount of £1,000 should be returned-as per letter dated E. J. MOSH. the 7 February, 1905, from the said G. B. Ded- woll to the defendant and as per letter Butel the 13th Feb., 1995, from the defendant to the mid . B. Dodwell, copies of which are hercuuto auboxed and markad respectively B. [Copy.]
In the Supreme Court at Shanghai on the ath inst, this hearing of the case of Dadwell & Co, Ld. verne E. J. Moss, was connneaned be- fore Mr. Justice de Sumarez.
Mr. R. M. Macleod and Mr. I. E. Pellook, K.C., appeared for the plaintiff company and Mr. Francis Elis and Mr. Duncan MeNeill appeared for the defendant.
Mr. Madleed real the following amended -pedition of the plaintiff company.
AMENDED PETITION
The mailed palition of the plantifs shoreth as follows :------
1-Plaintiffs are general merchants and shipping and instrane and commission agonts carrying on business Engel, in the Dumpire
of China, Columbo and elsewhera
Defendant is a merchant. carrying a Imsines at Forchow aforesaid,
and C.
"A"
Strictly evidential
New York, 20th April, 1901. My Dear Mass--Presuming that F. Richard should propose or desire to retire from D. C. and Co, before the expiration of the present partnership (30th April, 190) my suggestion is that D. C. and Co, should up ne quickly as possible and by wond thal D. und Co., I., should continus the Foochow and Colombo branches.
thì k that the Liwited Co. should pay you £1,000 in cash for your share of the goodwill. I uld not give anything to Richards, and I wuld not as for anything for my share, You would be manger of Foochow and receive £1,0 & your as valory nad to cover your living expouses, and the yearly increase would be £50. Whenever there was a racorey in the Board (The lieve we bave our full quota at preseud but don't
of Association) I would propose you for for this st and this wou'd untitle you to 100 yearly Director's fa I would further promiss that you should have the opportunity of holding up to 2,500 at par in the stock of D. and Co., Lal.
Hoping that you will give me a prompt reply incestirmation of the fongoing,-Yours very truly
GSO. B. DODWELL
E. J. Moss, Esq.,
Fugeltow
Personal
(Copy))
Fouchow, 13th February, 1905. My Dear Dolwe - Your persund letter to me dated the 7th inst, has had my best and closest alioution. I havo during your visit hare, spoken freely to you regarding the unfortunata poslton I find myself in at the present time, and I can only confirm what I then tot yan, namely that every oudeasons will. be put forth to notdato my ability to you. whilst the amount due to you at the prosent moment is creedingly heavy you way rent assured that no stone will bo left unturned by -ran to fùguidato these debts us soon as I possibly
can.
Referring to the requests you toate regarding the few asso's I now have, I willingly fall in with your wishes.
The deeds for my house and land I have given into the care of Dulling during ay absence, to b4 hald to your order and I hereby canthem what I have before written you amely, that at any time you require me to give you transfer of same, or to your nominee, I am quite ready to do so.
With regard to my interest in the Saw Mills, thin liited company is started, I am julle ready to hand you same, along with a binak transfor
Beau weemant dated the 26th day of Nov. 15-1, ai in a betwem George Benjaminkow definitlyn Luenerous of our Articleswing at the working is captinted and Doutwell and fio Enizat Bras Joseph loss who woo carrying or business under the style of Dodwell. Cariil! and Co., at Fuochow aud who of the one part, and the plaint if com- paby of the other part, it was agreed that thesid Georgo Benjamin Dodwell and the defondant E. f. Moss Phoumus no the 1st day of January. 1002, unsign to the plaintiffs the goodwill of the busineva of Dodwell, Carl:ll and Go
Ba. Plaintiffs have paid to the defendant the sun of 21300 sterling of a consideration for snch nesign pt and the agreements on the part of the denlant in this said aggrooment contained.
4.--By clause of the said agreement each of the said G. B. Dodwell and the defendant 1, J. Moss did thereby agree with the plaintiffs that they would not at any time thereafter while the plaintiff ny should arry on busines. either solely or jointly with, or is manager or agent fur, any other person or persons or cars-, pacy ether than the plaintiff company directly
Lot
or con-
I canot at the present moment go into the do'ails of winding up D. C. & Co, and taking over of uzrermouts with staff, ass etc. etc., bat can simply assure you that all sook mtters should be treated fairly and reasonably and that I would give personal attention to such matters.
Make up some telegraph ofphers as speedily as you can for use between 15 privately.Yours vory truly.
GO. B. DoDWELL.
E. J. Moss Esq. (of Foochow).
Present.
"
Personal
¡Copy
Foochow, 7th February, 1995, My Dear Moss. Your den position. It is vory painful for me to have to write regarding
"Endieetly carry on or be enga similar such a matter, but I should not ho doing m
cerned or interested in
in ang basies character to say of the businesses carrioduly to myself, as well as to the shareholders in IJ. & Co, Ld., if I did not take this up with the phala
atif company at (among other by plazoa) Forchow or Colomb, and that l would you, and endevour to arrive at spin range not permit or suffer his name to be used or ment which might be as satisfactory as it was employet ia currying on or in connection with possible to arrange under the present conditions, Your indebtedness at the present moment, as any such business as aforesaid, suve so far us his should as a member of the plaintiff company far as it is known to me, stands as follows:- bs interested or avofficer or servant or agont You owe D., C. & Co. for profits
$ 8,000 of the plaintif company be employed in the busiuose of the plaintif company.
The said E. J. MORS was up to the 8th May, 195, the maxagerof the plaintiff pay al. Foochow but on that date has fondered his resignation which was duly accepted by the plaintiff company and since that date ho has u in wo, way connected with the plaintiff Company
Defendant B. J. Moss has committed a breach of the still else 4 of the said agres ment dated the 29th November, 1901
7-The following are the facts complained
drawn in advance of realisation... And there is standing at your debit on sccount of your halt share of 106 in D. C. & Co.
-+
(This amount is owing to D. & Co., L., and is allowed to remain in this shape, because it is guarantaal by mok
Then there is a sum of £1,000, say $10,000, which is owing to D. Co., Ld., under the tens of your letter given to them at the time the business of D., C. & Co. was taken over by D. & Co., Ld:
54,60
The shares now hold will bu shortly diaposed of in secordance with your wishes, and I have instructed the Bank accordingly.
With regard to the 1,000 pounds paid to me by the insited company on taking over the business from Dodwell, Carl & Co., and in view of the stipulations not having been fulfilled during the past three years, I agree to refund to the Limited Company 250 pounds por anum of this until same is paid back, and I also agres to pay the Interest on my debt now standing in their books, monthly, as has herdo been done.
In eoan-etion with the repayment of the 1,000 pounds, I would recall to your memory the remarks made by me whilst here, and 1 hope you will so your way to carry out iny quest, namely, that in thearont of the next thres yours clearly showing, what I autain to be the past ease, that the lesses incurred during the three years have been quite beyand my control, and that without then the results would have fully juif d ray statements, and further that should the next three ears average what I then stipulated for, this £1,000 should be returned te 100.
As stated in your letter to me, this repayment of so much of my salary in tho ay of intareet, etc., will mean that fully half of same will ha absorbed, but whilst this is so, I can only tell you that I am quite prepared to suffer snch inconvenience as this may enuse me so long as I feel I am doing all in my power to repay my debis, Juking to the future to recoup me for the sacrifices I shall require to usko. Believe me, yours very truly,
#
E. J. Moss.
Mr. Pollock said there wars one or two stall mallera on which he would like to address the Court. Brrors had cropt into the particolars supplied his learned friend and there was
by also an error in the first paragraph of the plain- tiffs petition. With regard to the particulars 10,000, which had been led on behalf of the defendant it ought to have run "prior to the overtaking of the business by Dadwell, Carl and Co. With regard to paragraph I of the plaintiffs"
'merohands
it. polition after the wording ought to run "shipping gate," He asked Mr. McNeill said he did not think his that the petition be annet did accordingly. Lordship ought to grant this application for the alteration of paragraph 1 of the plaintiffs' petition. First the plaintiffs had asked for a restraint on the defendant carrying on business in Fonchow, then they asked for it to include Colombo, and now they west further and asked
the business of a shipping agent, that he should be fo biddea from carrying on
The defendant has permitted his name to be
So that your total indøbteduess ase in the syto of Muss & Co, L, which
...$72,631.00 vompany has advertised under date Foochaw, amounts to
The only suis that I am aware of are some May 30th, 1995, that it established itself on the
idth May. 1903, as general merchants, stip-shares in Farohms and the Langkat Compang, ing, insurence su commission agents at against which you have au overdraft with the Chartered Bank for just about their prosent Fouehow, Haukow, Shanghai and Colombo.
Your petitioners the efore pray-
value Thero is farther your bouse and the laul, and us regards this you have givsu, me a letter stating that you will transfer this property to me whenever I so require
That an injuction may issue to vestrain the defondant so long as the plaintiffs carry on basiness there form carrying on at Foochow or Colombs either solely or jointly with or as anager or usagent for any other person or per- sons or company other than the plaintiff company directly or indirectly the business of life, marine or insurance or merchant, or shipping or emission spent, and from being engaged concerned orintoreret in any of such basinesses at Fouchow or Colombo and from permitting or suffering his aune to be used or employed in carrying on or in connection with any such businesses at Foo-how or Colombo sve so far as he shall as a member of the plaintiff company ha interested or as an officer or servant or agent of the plaintiff company bo employed in the business of the plaintiff company.
2-Damages,
3.-Costs of this action...
Beyond this you bare at your credit in the Saw Mills for capital, and for moneys advanced, and for half share of the balance owing to D. & C., 38,253.
This, latter assot is of no value whatever unless it is decided that the working of the mill shall he continued.
Now I must ask you to do the following:-- The title deeds for the land on which your honso stands, ust be handed to me, and you mest give me a letter stating that these title deeds, together with the house theroon, shall be transferred to me, or to my nomince at any time that I may require.
4. Such farther or other relief as to this banded to me along with a blank transfer.
Conel soome just.
EAMENDRD ANSWER.
Mr. Ellis said that the re-amended auswer to the plainti's mooled petition read follows.--
as
The ro-amended answer of the above nameri defendant to te amended petition of the above -minted plaintiffe shors as follows:---
-Dondant admits the allegations con- tained in paragraphs 1, 3, 5, 6 and 7 of the amended p-ti ion,
--A to paragraph 2 of the amended petition the defondant says that up to the 14th Juan, 1905, he was carrying on business as a merchant at Faochow, in the Empire of China.
3. As to paragraph 3x of the amended petition the defendant admits that the sum of £1,000 sterling was paid to him by the plaintiffs to certain stipal tions cut red into between the plaintiffs and the defendant, Subarquently to the above paymnt the plaintifte demanded the repayment by the defendant of the said sam of £,000 sterling and he, the defendant, agreed to repay the same.
The interest you have in the Saw Mills, sopposing that the working is continued, and that the Limited Company is started must be
The shares
you hold must be realised as soon as you can do so to cover tre overdraft that you have with the Chartered Bank. I do not like the idea of your bankers advancing sums against abates in this manner, and I want to see this account closed.
It is my int ntion when you bave done what I have stated above, to hold the Becarities for the bonsßt of your credito's and it is my hope, if you carry out your expressed promise of working hard, and endeavouring to repy your debt, to ko p your bones and land, and share in the Saw Mill int so that it can be lauded back to you as soon as you are able to clear off the sums you owe;
Mr. Pollock replied that if bis Lordship would he would see that it was stated that the plaintiffs refer to paragraph 1 of the nonded petition were general merchants, shipping agents, insurance and commission agents, &c. It was stated that the paintiffs were shipping agents and that was admitted in the re-amended auswor filed on behalf of the defendant In paragraph 7 of the amended petition it was stated that defendant hat permitted his name to be used in the niuess of Moss and Co., as merchants, insurance grate, and general shipping agents. His learned friend could not now come into this Court and say that he did not know there was Counsel sub- any question about shipping. mitted that it was enly resonablo that he should be a'lowed to make paragraph 1 of the pravar correspond with para- graphs 1 and 7 of the amended petition. Mr. MoNeill seemed to rly on the original petitiou, but that was expressed in very general and wide terus, and plaintiffs asked that dofondant should not engage in the business of similar character to the plaintiffs in Foodow. Here they were asking much mors quifically with regard to the business. It could not possibly be sur gested seriously that such arcendment made at such a time could seriously prejudice the defea dant. He did not really expect that his learned friend would bare opposed it seriously.
Mr. MoNeil We did not believe up to this point that the plaintiffs wished to restrain with
but rays that such payment was made subject of the £1,000 you one to them. I am perfectly regard to shipping ink the amendment must
4-A to paragraph of the amended petition the defendant admits the allegations
inter alia) set forth therein.
And in further answer to the ameaded pofition the defendant saya :--
41) Tint the agr-oment entered into between the plaintiffs and the defendant is an agreement which impuses an unreasonable restraint of trado and is opp sad to public policy and there fora vuid.
may
ba
His Lordship - I
made, but I shall, of course, bear in mind what you say, Mr. McNeill.
In his judgment, Lord Justice Romer. Homer said that where a
of anti- given on pages 39 and 31, Lord Justics cient age and business capacity entered into an agreement the onus lay on him to prove that the restraint imposed was more that was Therefore bis Lordship would son he had a judgment of the Court of Appeal that which was only five or six years old, in which this particular course was adopted. That was to say that a person of mature g, who wanted to get out of a contract which he hat ent red into had the burden thrown upon bim to provo that the restraint was more than w29 necesary.
Mr. McNeill said that sing the cise of Hayno Donan he did not think thows had beny doubt as to on whom theenus of proof rest. d in this matter.
His Lord-hip-Well, you had better. begin then.
Mr. MoNeill said that he was very willing to take up the hardon of convincing his Lord- ship that this was a converant wich was us reasonable, and which should be set aside.
Mr. Pollock addressed the Court at consider- able length on the 8th inst., and judgment was reserved.
Wo learn that an injunction has been granted against the defondant ros raining him from petir against the plaintiffs la Ferkow and Colombo
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Mr. Follock said the point be desired to lay before his Lordship in the first instance was as to with whom the onus of proof lay. Ho submitted that the burden rested on the defendant, who had fried to get out of a THE NEW FRENCH REMEDY express contract which he had entered inte. he he burden rested with him of showing, if could, that the covenant out of which he had tried to escape was unreasonable. It was not
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As far as your personal expenses are concerned, I consider that at least £250 per annum must be paid to D. & Co., La., towards the liquidation certain in my own miutha all of the managers will insist on your acknowledging this debt, and on your redeeming it as quickly as your mean will allow, on I feel that anything less than the £250) I have i dicated abayo as a yearly repay-
I ment will not be ucooptable to them. mastion that I have not consulted anyone of the shareholders, not oven Carlill, about this matter, and that in my opinion it will need all my influence and per nesivances to get the other directors in the Limited Company to agree to what I have preps to this repayment to disputed by the defendant in this case, but as a
Then in addition Dodwell & Co, Ld.. I consider that the interest mailer of fact he had admitted the brosch of on the umount that you owe on uocant of your conant, and plaintiffs abwitted therefore, balt share in Dodwall, Carkill & Co. which at 5 that the defendant, having pleaded that the
covenant was unrensonible the burden was THERAPION N01 per cent per anung wald amount to 52,730 Your defendant thofofore praya :--m. (1)-That he amended petition of the plain should be remitted by you in monthly instal-resting on him of satisfying the Court that the
ents to Hongkong. tila bo dismissed.
above, and his Lordship to some authorities bearing on this carry out my kinh. It is my hope that if you covenant was unreasonable, Counsel referred. work well and inteligen ly for the Fimited paint, quoting Russillon v. Russillon (L. B. Company, to endeavour to treat these payments 14. Chancery Div, p. 31, and said that of Interest as payments of principal, but I am Mr. Justice Fry, afterwards Lord Justice sorry to say that at the present moment, in Fry, cited from and adopted that decisionHERAPION NO. 2 punts of
the Court of Queen's consequence of the awful losses. I have person on this point in ally suffered over the working of the Saw Bench in the enss of Tallis v. Tellis (Ellis and tkar or other relief as the nature of the case Mili's, and of D.; C.-& Co. I am not able to Blackburn, and 2 Law Journal, Q B.D.) It employ memory, exesaparilla, &c., to the destruction require.
was her clearly laid down by Mr Justice Fry, Mr. Ellis said the following were the definitely make a promise to this effect,
only on Lis own authority, bat follow. I know that in recommending the foregoing not onl particulars as to the stipulations referred in paragraph 3 of the re-amended answer: it will mean that searly half of the salary you ing the judgment of the Court of Queen's Beach Prior to the taking over of the busines of receive from the Limited Company will be in Tallis v. Tallis that the burden zested upon Dodwell, Curiill & On, on the 31st December; swallowed up in repay ng your deble, but I do the defendant to show that it was plainly and 1901, the directors of Dodwell & Co., Id., raised not think you should look apon this as a bard- and obviously clear that the protection extended objections to the arrangement made by G. Bship, as, if you are determined to carry out what beyoud what the plaintiff's protaction requir Dedwall as per bis lotter to the defendant you have so plainly stated to me, viz., that you od. That finding of the law bad been followed dated the 10 April, 1901-copy of which is want to repay your indebtedness; and to in later uses, perhaps most notably in the onse of Haynes e. Donn (1899, 2 Chancery Div., horelo annexed and marked A-and in order to prove that my trust in you has not been mis- prevent negotiations falling through it was placed, you will not hesitate to exercise the pp. 13 & 19). This was a judgment of Mr. arranged by telegraph and afterwards confirmed requisite self-denial and reduce you personal Justice Sterling, and was confrmed in the by the defendant in a latter which is in the expanses, so that you will be able to carry out Court of Appeal, consisting of the Master:
of the Rolls, Lord Justice Righy, and possession of the plaintiffs that the sum of my wishes.
That the plaintiffs be ordered to pay to
the defendant such damages, as may be found payable at the trial of this action.
Ly
3)That the plaintiffs may be ordered to
the costs of this action.
That the defondant may bare such fur
to
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