Opinion ID: 1656980
Heading Depth: 1
Heading Rank: 1

Heading: Unlawful Restraint of Trade

Text: Appellants first contend the trial judge erred in failing to invalidate services and merchandise-only contracts as Unlawful Restraints of Trade. After hearing testimony, Judge Mays made the following ruling: The evidence was insufficient to show that the effect of these contracts results in unfair competition and restraint of trade. The evidence showed that there is strong competition among funeral homes in the same locality and that it is possible for new funeral homes to compete with existing funeral homes. On appeal, appellants contend the chancellor erred twice; first, by failing to credit all of the evidence showing actual anti-competitive effect, and second, by focusing exclusively on the effect of appellees' anti-competitive contracts, and not considering whether anti-competitive intent is itself a sufficient basis for invalidating the contracts. Appellants' first contention is without merit. Considering the evidence in the light most favorable to the appellee, the appellate court tries chancery cases de novo on the record, and does not reverse a finding of fact by the chancellor unless it is clearly erroneous. McGuire v. Bell, 297 Ark. 282, 761 S.W.2d 904 (1988). The chancellor here heard the testimony of Bill Booker, an employee of Roller, who stated that the Roller corporation was forced to sell its Osceola operation to a new competitor, appellant Wilson Funeral Home, because of Rollers' increasing loss of market share in the area. Further, Booker testified that in the towns of Helena-West Helena and Marianna, Roller-controlled funeral homes had been consistently losing market share since a competitor opened its doors in 1989. Therefore, seeing that competition in this line of business has remained strong throughout the period in which these contracts have been enforced, we hold that the chancellor's finding of no anti-competitive effect is not clearly erroneous. Moreover, we find no merit in the contention that the chancellor failed to credit the testimony of Harry Legget, who stated that enforcement of service and merchandise-only contracts did indeed injure competition. It is well settled that questions raised regarding the weight or credibility of an expert witness' testimony go to the weight or credibility of his testimony, and any argument regarding the weight of that opinion is a matter to be decided by the chancellor. C.R.T., Inc. v. Brown, 269 Ark. 114, 602 S.W.2d 409 (1980). Also, the chancellor is in a superior position to evaluate the credibility of witnesses and is not bound to accept the testimony of a witness as true where a reasonable inference contrary to his testimony could have been drawn from the facts stated or from other facts and circumstances shown by the evidence unfavorable to his conclusion. Roe v. Dietrich, 310 Ark. 54, 835 S.W.2d 289 (1992). We next confront appellants' alternative contention for finding an unlawful restraint of trade. In their brief, appellants argue that in focusing exclusively on the effect of the contracts, the chancellor failed to consider whether anti-competitive intent is itself a sufficient basis under Arkansas law for invalidating the challenged contracts. In addition, the arguments raised in this portion of appellants' brief unquestionably center around a proper construction of the law, which appellants contend support a cause of action based solely upon an improper purpose. It is clear from the foregoing that appellants are arguing, or more appropriately conceding, that the chancellor never rendered a determination as to whether or not, under the law of Arkansas, a restraint of trade cause of action will lie upon the intent theory. An examination of the record reflects that appellants consistently presented the chancellor with its intent is enough argument. However, it is even more clear from review of the findings of fact and conclusions of law that the chancellor failed to specifically rule whether an intent to injure, alone, armed appellants with a valid and recognized cause of action. As argued in appellants' brief, the law is the issue under this portion of appellants' restraint of trade argument, not the evidence, and it is clear the chancellor never ruled on the law. The burden to obtain a ruling on a particular theory of recovery is on the appellant. National Lbr. Co. v. Advance Development Corp., 293 Ark. 1, 732 S.W.2d 840 (1987); see also City of Springdale v. Town of Bethel Heights, 311 Ark. 497, 845 S.W.2d 1 (1993). It is well established that matters left unresolved at trial are waived and may not be relied upon on appeal. Carpetland of N.W. Ark., Inc. v. Howard, 304 Ark. 420, 803 S.W.2d 512 (1991). Even if this court were inclined to stretch the chancellor's finding and holding, that the evidence presented was insufficient to establish any of the various grounds for invalidating appellees' ... contracts, into a ruling on the intent theory of recovery, the appellants' cause must still fall. The contracts at issue were entered and executed between vendors and vendees. John B. Frazier, Chairman of the Arkansas Burial Association Board, testified on cross-examination by appellants, that the purpose of providing service and merchandise-only contracts was, to assure that the wishes of the deceased are carried out ... so somebody can't come in there and take the money away fromfor the purpose it was intended. Counsel for appellants then asked: Q. Okay. Does that not have the effect of tying that person, his family, to having that funeral service at Frazier Funeral Home? A. Certainly it does, because that's the intent. Appellants, using the above testimony and citing American Excelsior Laundry Co. v. Derrisseaux, 204 Ark. 843, 165 S.W.2d 598 (1942), argue the primary purpose of Roller's contracts tends to create a monopoly and the law makes such contracts unlawful. First, the Derrisseaux case is inapplicable because that case involved a covenant not to compete and involved matters not in issue here. Second, while the rule of law relied on by appellants is good law, that rule does not control here. The general rule is contracts and combinations which tend to promote business, and which only remotely, incidentally and indirectly restrain competition are not forbidden. 54 Am.Jur.2d Monopolies, etc. § 457 (1971). Frazier's testimony that the primary purpose of such contracts was to assure compliance with the intentions of the contracting party make it clear that there was a legitimate purpose behind inclusion of the restriction. Further, even if the contracts had the intent and effect of tying consumers to the contracting funeral home, the evidence shows that those homes which employed the contracts did so merely to maintain the business of their original contracting customers. Since the restrictive provisions were employed for the purpose of promoting business, and since enforcement created only an indirect and incidental effect upon competition, we decline to overturn the decision of the chancellor.