Marietta Yamaha, Inc. v. Thomas

Nichols, Chief Justice.

Dunwoody and Thomas each owned 50 percent of the stock in Marietta Yamaha, Inc. There was a disagreement between them as to the management of the business and Dunwoody negotiated to buy Thomas’ interest. An agreement was entered into whereby the corporation would purchase Thomas’ stock, thereby leaving Dunwoody as the sole stockholder. Paragraphs 5 and 6 of the agreement contained a noncompetition clause as follows: "5. As further consideration for the sale of stock hereby contemplated, the seller agrees that he shall neither own or engage, directly or indirectly, in…