Greenstein v. Simpson

OPINION

THOMAS, Justice.

If an invalid covenant not to compete is breached, can the maker of a note, given as consideration for the invalid covenant, establish partial failure of consideration as a defense pro tanto and reduce the principal of the note by the amount of consideration which failed as a result of the breach? This appeal poses this principal question, which we answer in the affirmative, and we affirm the judgment of the trial court.

Appellant was an equal partner in an accounting partnership composed of Appellant-Greenstein, Dulock and Logan, three certified public accountants, with…