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Cude v. Couch
588 S.W.2d 554
Tenn.
1979
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*1 judgment of possession his immediate at. all times the Court of Criminal reversed, when operating a motor vehicle and shall is and the case dismissed. same, display the upon demand [of appropriate . li- Every . . . officer] BROCK, J., FONES, C. HENRY and censee operating a motor vehicle in viola- JJ., HARBISON, concur.

tion of guilty this section shall be of a misdemeanor .

T.C.A. 59-2116: § It shall be unlawful any person operate

for any motor vehi-

cle . . while judgment or or-

der of the court prohibiting operation Any person

remains in effect. found to

be an provi- habitual offender under the

sions of chapter who thereafter convicted of operating a motor vehicle CUDE, Betty Administratrix of Rose this state while judgment or order of Cude, Robert Estate of Jessie the court prohibiting such is in Petitioner, Deceased, effect, shall be guilty felony . “judgment or order” to which T.C.A. Respondent. COUCH, 59-2116 § refers is that issued under the Supreme Tennessee. provisions of T.C.A. Habit- 59-2113 of the § Act, ual Motor Vehicle Offenders which' 22, Oct. states that if the court finds that an indi- vehicle) vidual (motor is an “habitual of-

fender,” it shall person order “that such

shall motor vehicle on

highways person of this state that such

shall surrender to the all licenses to court

operate a upon highways motor vehicle

of this provides state.” T.C.A. 59-2115 §

that no license shall be reissued to one

subject Thus, to such an order. under this scheme,

statutory subject person to a

restrictive order under the Habitual Motor

Vehicle Offenders Act can have no valid and, license,

Tennessee driver’s should he order,

drive in he violation of that necessar-

ily possession. drives a license in his without

Accordingly, impossible it is for one to vio-

late violating T.C.A. 59-2116 without § well,

T.C.A. 59-709 as and thus the latter §

offense is included within the former. Cf. Ohio,

Brown v. 97 S.Ct. U.S.

53 L.Ed.2d 187 It follows that

petitioner’s plea guilty charge to the

violating T.C.A. 59-709 bars his subse- §

quent prosecution the violation 59-2116,

T.C.A. upon based same inci- §

dent.

555 appointed, operated laundry was the order, and for several months. On court advertisement, the assets of after equipment of the nership, which consisted At sale. laundry, public of the were sold at sale, that Couch indicated the time of anyone building to he would not lease the operate the might who want to continue to there, purchaser thus the laundry it would have to remove equipment premises. equipment from by one Louis Platkin ultimately purchased Although it was not revealed for $800.00. sale, Platkin was an at the time of the son have his agent Couch and of Couch. at the operate the laundromat continued to same location. inor

Cude moved to set aside contending in damages, the alternative for essence that Couch had value artifi- clandestinely, at a equipment permit cially his refusal depressed by in that premises, to lease the others advantage an unfair doing gained so he had partnership, in a transaction with the Af- duty to Cude. breaching fiduciary denied judge hearing, ter a the trial Lloyd Adams, Jr., Adams, S. Ryal & Cude However, permitted motion. he McLeary, Humboldt, for petitioner. so, did Cude file counterclaim. an amended substantially the same and in it restated Hawks, Dwight Humboldt, respon- raised in had been claim for relief that dent. by a heard motion. This counterclaim record judge, upon both the second trial OPINION testimony. additional prior hearing COOPER, Justice. Cude’s judge also denied This second trial was affirmed judgment His claim.1 presents This case single question Appeals. whether, purchasing certain assets of a partnership upon liquidation, its judges the several agree with We duty Couch breached the that he owed to previously this case who have considered partner, conclude, J. R. Cude. We as We do merit. claim is without Cude’s below, did both courts that he did not. each other partners owe question partnership question fiduciary pertaining was formed matters duty in all contin purpose duty Couch and Cude in partnership, 1965for the and that operating being liquidat partner- partnership a laundromat. The ues while the ship space business, simply rented We do not for the on a 61-120. ed. See T.C.A. § here, basis, Couch, that, month-to-month in a the facts shown believe building that housed There is no dealership. duty Couch’scar to Cude. breached In seeking Couch filed an action had an inherent ad doubt but that Couch dealings ques- have the partnership throughout dissolved. A receiver vantage prosecuted by pend- the administratrix of his While this amended counterclaim was been ing, then, estate, petitioner J. R. died. Since Cude the action has who is the before this court. 556 However, the fact

tion, others. that Couch bene- ownership as a result of his of the operated. nei- property on which the laundromat from that circumstance harmed fited However, the breach- record does not show ther Cude nor advantage Davis, used this to force Cude out of duty to neither. Cf. Davis v. ed his partnership. showing, Absent such 366 P.2d Colo. permit neither Couch’s refusal to others to *3 The decision of the premises, lease the nor the manner and peti- be taxed to the affirmed. Costs will price purchase equipment— of his of the tioner. together peti- of the form the basis complaint improp- tioner’s be termed —can HARBISON, JJ., and concur. BROCK beginning partnership, er. From the of the FONES, J., J., Couch made it clear that he would not HENRY, and dissent. C. permit part in to property, a lease of the Justice, dissenting. HENRY, insure operation that the of the laundromat respectfully I dissent. would not interfere with that of his car dealership, operating building. in the same in conscience, cannot, acquiesce good I in proof that, The also shows at time of the my colleagues. by conclusions reached dissolution, Couch’s determination in say that prepared to While I am not regard strengthened by his belief partner, upon practiced a fraud Couch might put space need to to use that escape from the conclusion there is no notice, purposes for other either to on short fiduciary appalling breach there was an expand dealership, provide office or to This upon sharp practices. duty bordering space for his practice. son’s medical Under cannot withstand simply transaction circumstances, these conceive we cannot Courts, as equity. scrutiny of a court of partner that Couch’s to his duty admitted observes, “require good Chancellor Gibson require premises would that he lease repro- men, and dealings faith in between interests, against despite his own best Chancery Suits bate faith.” Gibson’s bad fact that not laundry could be sold as a physician a (4th 1937). Just as 48 ed. § going business without lease. As to the a signs, external disease diagnoses internal manner purchased which Couch expose diagnose equity of so do courts equipment, agree while we peti- with the harmonize not that do practices and treat tioner that it would have been better had good with faith. Platkin agency, disclosed his there is no refinements, shapes, subtleties, are There suggestion in the record that his failure to rec- in this presented disguises forms and so, itself, prejudiced do of either the essentials, and bare stripped to When ord. nership any- or Cude. Neither can we find fair- fundamental light of in the analyzed thing objectionable price in the that Couch an unwhole- unerringly to ness, they point greater for the equipment. It was transaction some, unfair unsavory and Cude, than the amount that who also bid on lookWe view, not stand. which, may my equipment partnership, owned record. to the prudent deemed There were no to offer. by Nathan laundry The bidders, suggest other which would seem twenty-six employee Couch and open property the value of the lease, on Cude, a without years, Robert at price market offered was minimal. The $7,000.00. 9,1975, for the sum September of an a public sale is the best indication “Wash- name changed the They Davis, 149 Colo. item’s worth. Davis See Laundry- to the “C&C Laundrymat” Osborn, time Bagg v. 169 (1961); 366 P.2d 857 it without operate continued Unques- mat” and Minn. 210 N.W. re- They same location: and in the advantage, divorced lease tionably, Couch had After ones. new with placed all machines made it more from the years seven it for owning operating carry on the business practicable for him The months, for $800.00. it was sold than for seven after dissolution partnership of the Shortly thereafter appraisal written the same the name of the estab- record shows changed lishment was to C Laundromat laundry, equipment, or newer at same Immediately then to Laundromat. location, same and the same Dr. Couch after the Mr. Couch and $10,- without a lease to have been worth business, and the started to 000.00. of the that, record shows as of the date Nathan Couch instituted suit for dissolu- operating trial, 2,1977, still they June were partnership tion of the appoint- and for the at it, purchase after the years almost four appoint- ment of a receiver. The receiver is the receiver’s sale. ed and directed to “sell all property Couch is testimony by Dr. following assets of the partnership. . . .’’As significant: conducted, only the sale was as to the Q. it your Was intention continue equipment and did not goodwill include the father %y(3) your if going happened? business. What *4 to bought laundry equipment answer: Nathan Couch. as it had been continue stripped He the partnership pri- of its done? mary asset, goodwill, by the simple ex- suppose A. I so. pedient requirement of an announced high Q. father your So when became there would be no lease purchaser and the behalf, you, in carried out bidder his expected was to remove all equipment intention, you did not? forthwith. operated This to shoot A. Yes. ner out of the saddle. testimony speaks eloquently This more At some prior time to the sale Nathan and squeeze the intent out Robert Cude son, Couch, Couch’s Dr. Edward Charles language I any take over the business than picture, entered the as agent, servant might use. representative of his father. Dr. Couch angle, Nathan any Viewed from Couch, time, at the practicing was medicine partner good failed to deal in faith with in Memphis with Dr. Alan Platkin. Dr. pur- advising he intended by him that Couch father, induced Dr. Platkin’s Lewis partnership property and continue chase Memphis Hum- Platkin, to come pur- the business. Instead boldt, ninety some or more away, miles actual- sly surreptitious, was chase purchase laundry.1 It is clear that Lew- an accomplished by using the court as ly is Platkins was acting for Dr. Couch and which unwitting instrumentality through that Dr. Couch had authority full from his plan this was consummated. father. continued the business Nathan Couch has It is equally purchase clear that the enjoyed mon- the benefits and has all of the firm ey was and con- by either direct succession stemming Couch or from a Moreover, he through going of a business. Agency his Cadillac-Oldsmobile tinuation to his own use and benefit appropriated has by owned by 75% him and 25% Dr. Couch. business, for goodwill going Following what I am view as constrained to equity elementary principles the most a premeditated plan to take over the laun- pay just and play and fair demand dry, made, purchase sale was after the compensation. reasonable no-lease, had get-out been chilled a an- nouncement, paid, my consideration and im- con- shocks This whole transaction mediately thereafter the utilities were con- remark famed science. Justice Cardozo’s 458, 164 N.E. Salmon, verted to the name of “Couch’s Laundro- 249 N.Y. Meinhard (1928) mat.” apt: is Memphis practicing stranger and Na- medicine in 1. Lewis Platkin was a total to those playing place business in his attendance at the sale and he did not bother than pur- to make himself known until after the tonk. chase. did Cude not know him. Dr. Couch Many forms of permissible conduct Susano, Jr., Knoxville, Charles D. for de- workaday acting world for those at arm’s fendants-appellants.

length, are forbidden to those bound Knoxville, Rader, Charles E. plaintiff- fiduciary ties. appellee. I would reverse and remand to the trial court with instructions to determine the OPINION going value of as a busi- GODDARD, Judge. ness, assuming period a lease for the business has operated by been Couch since Wood and Safeco Insurance Malcolm entry and for the of a decree America, bonding company, Company making appropriate award. appeal Defendants-Appellants, $1288 against in favor of judgment rendered them

FONES, J., joins in this dissent. Inc., Plaintiff-Appellee. Witherspoon, David Inc., Company, a co- Ivester Auction John defendant, judg- against whom a default entered, appealed. While has not ment was error, assignments of are seven there specific findings which address last six of WITHERSPOON, DAVID INC., Court, a resolution of holdings of the Plaintiff-Appellee, out, set hereinafter assignment, first *5 appeal: dispositive of this finding and Malcolm erred WOOD and The Chancellor Safeco Insurance Wood, thus Safe- Company America, holding that Malcolm America, was Company of Defendants-Appellants. Insurance co proceeds appellee for liable to the Tennessee, paid which were sale the auction Eastern Section. agent. appellee’s June 1979. case are practi- of this The material facts Auction undisputed. John Ivester

cally Louisiana, Inc., Company, Shreveport, organizing pro- company engaged in auctions, an auction to be moting organized Alcoa, Tennessee, October held its purpose, of this In furtherance and obtained con- representative solicited Plaintiff goods from the signment of were con- the sale. Five items inclusion in at signed (four of which were Plaintiff) with a by the in accordance sale Ivester and agreement written between among other provided, Plaintiff things, following: payable

All checks shall be made Inc., Co., John as Owner’s Ivester Auction authority to reclaim agent, shall full have for as any and resell items not agreed sale. Owner in the terms of the will be al- understands that Auctioneers requested. approval appointed by * Certiorari Published with the of a committee of the Court Presiding Judge.

Case Details

Case Name: Cude v. Couch
Court Name: Tennessee Supreme Court
Date Published: Oct 22, 1979
Citation: 588 S.W.2d 554
Court Abbreviation: Tenn.
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