Santa Clara Valley Mill and Lumber Co. v. Hayes

Citations

• 76 Cal. 387
• 18 P. 391
• 1888 Cal. LEXIS 898

Syllabus

<p>Contract in Restraint or Trad® — Combination among Lumber Manufacturers—Illegal Contract.—The plaintiff and the defendants, who were each manufacturers of lumber, entered into a contract, by the terms of which the defendants agreed to make and deliver to the plaintiff during the year 1881 two million feet of lumber at eleven dollars per thousand feet, and further agreed not to manufacture any lumber during such period for sale within a specified territory, except under the contract, and to pay the plaintiff twenty dollars per thousand feet for any lumber manufactured and sold to parties other than the plaintiff. Similar contracts were made'by the plaintiff with other lumber dealers, and its sole object and consideration in entering into such contracts was to form a combination for the purpose of increasing the price of lumber, limiting the supply, and giving it the control of the lumber market within the territory specified. Held, that the contract was in restraint of trade, and being, indivisible, was invalid in its entirety.</p>