This section contains the nature of the case and procedural background.

P was a duly licensed corporation to conduct 'an academy, institute, college or school of learning for the purpose of giving instructions, in person or by correspondence, in the various branches of psychic science, psychology, mental science, psycho-therapy, suggestion, suggestive therapeutics, philosophy, metaphysics, occultism and kindred philosophies and sciences,' and to publish and sell books, literature and articles of merchandise pertaining to said subjects and sciences and the teaching of chiropractic. D was a chiropractic practitioner and became connected with P as its instructor in that subject in 1913. D owned 12 shares of the 50 shares outstanding in P. P charged each of its chiropractic students $68.75, payable in installments. P had assets with a value of approximately $110,000, and for seven months subsequent to January 1, 1917, its average profits were $800 per month. D was elected president of P. D was discharged from his position with the corporation as instructor on December 22, 1916. D had possession of the lists of students and prospective students, which were demanded of him, but he refused to deliver them up, and early in January, 1917, he began addressing communications to P's students and prospective students, belittling the course of study and methods of instruction. D was establishing a new and better course of teaching chiropractic by mail. P and D settled their differences, and D turned over his stock and D’s note for $5000 in debt to P, along with $1000 in cash. D agreed to deliver to the complainant the lists of students and the documents in his possession belonging to P within forty-eight hours, and further agreed he would not address and send to students and customers of P any more letters or documents of the kind complained of, and would not in any way interfere with P's business. P and D signed the settlement agreement, which D immediately breached. On January 15, 1917, D incorporated the Chicago University of American Sciences with D as faculty head, and sent numerous communications to P's students, some of them addressed 'to my old students,' advising them of the superior facilities of the Chicago University of American Sciences for teaching chiropractic. He portrayed the stockholders of P as 'money-grabbing stockholders,' and offered to give the students a better course of instruction for less money if they would come with him. The communications were numerous, and some of them were lengthy. P filed a bill in equity charging D with circulating letters and advertising matter among P's students and prospective students containing statements and charges of a character derogatory to complainant and its business. P prayed that D be enjoined from further sending out such circulars and letters. The appointed master recommended a decree as prayed in P's bill. The chancellor agreed. D appealed. The appeals court reversed with directions to dismiss the bill. P appealed.

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