Callahan v. Donnolly
California Supreme Court
Appeal from the District Court of the Fourth Judicial District, City and County of San Francisco. On the 13th of September, 1864, Thomas Donnolly, T. C. Donnolly, and one Landsberger, comprising the firm of Donnolly & Co., sold to the plaintiff for seventeen thousand and eighty-five dollars the business of manufacturing “Donnolly’s Yeast Powder,” and entered into his employment, agreeing that for eight years they would not engage in the manufacture of “Donnolly’s Yeast…
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Appeal from the District Court of the Fourth Judicial District, City and County of San Francisco. On the 13th of September, 1864, Thomas Donnolly, T. C. Donnolly, and one Landsberger, comprising the firm of Donnolly & Co., sold to the plaintiff for seventeen thousand and eighty-five dollars the business of manufacturing “Donnolly’s Yeast Powder,” and entered into his employment, agreeing that for eight years they would not engage in the manufacture of “Donnolly’s Yeast Powder,” nor in any branch of the business. They were to receive for their services a certain percentage of the profits of…
1Opinion of the Court
By the Court:
The contract which provides that the Donnollys will not engage in the manufacture of “ Donnolly’s Yeast Powders,” nor in any branch of the yeast powder business, is in the latter clause plainly in restraint of trade, and therefore void. (Wright v. Ryder, 36 Cal. 357; More v. Bonnet, 40 Cal. 251.)
It does not appear that the Donnollys are manufacturing “ Donnolly’s Yeast Powders.” A contract in restraint of *154trade, and which is not by its terms limited as to the territory embraced in its operation, is not to be supported. “It is to be remembered, however (said Tindal, C. J., in…
2Cases cited2 opinions
- Wright v. RyderCalifornia Supreme Court · 1868
- More v. BonnetCalifornia Supreme Court · 1870
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