Showe-Time Video Rentals, Inc. v. Douglas

CROW, Chief Judge.

This appeal presents the question whether equity will enforce a covenant not to compete, in an agreement that either party can terminate at will, where the covenant restricts only one party, and the other party terminates the agreement, then seeks to enforce the covenant.

Appellant (“Showe-Time”) is engaged in the business of renting movie videocassettes to the general public. Showe-Time’s videocassettes are available at various outlets, referred to at trial as “branch facilities” and “pit stops.” Individuals can obtain “credit cards” from Showe-Time, and use them in renting…