John L. Grant v. Carotek, Inc.

ERVIN, Circuit Judge:

John L. Grant is a former employee of a North Carolina chemical processing equipment distributor known as “Carotek, Inc.” In November of 1982 Carotek discharged Grant. With the help of another former Carotek employee, Grant proceeded to form his own distribution company. Grant’s contract with Carotek, however, included .a “Non-Competition Clause” that purported to cover Grant’s activities for five years after the termination of his employment with Carotek. In March of 1983 Grant filed a suit in diversity in federal district court to obtain a declaratory judgment stating…