Palumbo v. Piccioni
New Jersey Court of Chancery
On hearing on motion to dissolve injunction pendente lite. By this suit complainant seeks to specifically enforce a covenant made by defendant wherein the latter agreed not to engage in the shoe repairing business in Camden for a period of five years from March 14th, 1916. On that date complainant purchased the shoe repairing business then owned by defendant and the covenant referred to was executed as a part of that transaction.
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On hearing on motion to dissolve injunction pendente lite. By this suit complainant seeks to specifically enforce a covenant made by defendant wherein the latter agreed not to engage in the shoe repairing business in Camden for a period of five years from March 14th, 1916. On that date complainant purchased the shoe repairing business then owned by defendant and the covenant referred to was executed as a part of that transaction. At the return of an order to show cause defendant, though duly served, failed to appear and an injunction pendente lite was issued. Defendant has since petitioned…
1Opinion of the Court
Leaming, V. C.
The early rule was that any contract which tended to restrain trade was void; but it is now everywhere recognized that many contracts in partial restraint of trade are valid. In United States v. Addyston Pipe and Steel Co., 85 Fed Rep. 271, valid covenants in partial restraint of trade are classified as:
1. Agreements by a seller of a property or business not to compete with a buyer in such a way as to derogate from the value of the property or business sold. 2. Agreements by a retiring partner not to compete with the firm. 3. Agreements by a partner pending the partnership not…
2Cases cited2 opinions
- Wood v. . Whitehead Brothers Co.New York Court of Appeals · 1901
- Tuscaloosa Ice Manufacturing Co. v. WilliamsSupreme Court of Alabama · 1899
3Cited by5 opinions
- Bond Electric Corp. v. KellerNew Jersey Court of Chancery · 1933
- Bowen v. Carlsbad Insurance & Real Estate, Inc.New Mexico Supreme Court · 1986
- Hogan v. Bergen Brunswig Corp.New Jersey Superior Court Appellate Division · 1977
- Yanko v. GoldbergNew Jersey Court of Chancery · 1927
- Fishman v. FishmanNew Jersey Court of Chancery · 1945