Smoak v. Carpenter Enterprises, Inc.

Waller, Justice:

This is a breach of contract action in which both sides appealed. We affirm in part and reverse in part.

FACTS

Respondents-Appellants Margaret E. Smoak and Lila S. Easterlin (Sellers) were co-owners of Port City Paper Company (Port City). In 1991, they sold Port City to Carpenter Enterprises, Inc. In conjunction with the sale, Sellers, as a business and individually, agreed not to compete with Carpenter Enterprises for a period of five years. In return, Carpenter Enterprises agreed to make certain monthly payments to each individual Seller during the five-year period. Ronald…