Thermatool Corp. v. Borzym

Defendants, John J. Borzym, Maxzym, Inc., and Tru-Motion Automation Systems, Inc., appeal by leave granted from the entry of a preliminary injunction that extended the terms of a noncompetition agreement that expired on October 31, 1996. We reverse and remand.

In 1986, defendant Borzym was the president of plaintiff Alpha Industries. The stock of Alpha was owned by Borzym and his relatives. On October 31, 1986, plaintiff Thermatool Corporation purchased Alpha for $2,365,000. In addition, Thermatool agreed to pay Borzym a royalty of five percent of annual sales above $2.5 million for a period…