American Broadcasting Companies v. Wolf

420 N.E.2d 363 (1981)

 

RULE:

To be enforceable, an anti-competitive covenant must be reasonable in time, space, and scope, and must be necessary to protect trade secrets, customer lists, and good will, or where the former employee's services were so unique.

FACTS:

Parties had a contract where P employed D as a sports broadcaster, which contained a non-compete clause. D breached the contract and went to compete with P's competitor. P sued to enjoin competition, and the court denied the suit, ruling in favor of D. P now appeals.

ISSUE:

Can the parties' non-compete be enforced?

ANSWER:

No.

CONCLUSION:

Court affirmed the judgment for the defendant because his breach of contract, w/o a covenant not to compete, or threat of tortious conduct, did not warrant injunction against his employment with plaintiff's competitor after expiration of term of parties' contract, and there was a policy against anticompetitive agreements.

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