Downing v. Jacobs

On March 9, 1976, defendant-appellant Gale Jacobs sold Jake’s Auction, an auction building located in Payette, Idaho, to plaintiff-respondent Marlin Downing. In conjunction with the sale the parties signed a covenant not to compete that provided as follows: “Section 1. Covenant [Appellant] shall not compete with [respondent] by operating an auction house within a 50-mile radius of the city of Payette, Idaho, for a period of two years after the date of this agreement, without the written consent of [respondent].

In November, 1976, appellant attempted to conduct a toy auction in Payette through…