Universal Ideas Corp. v. Esty

Plaintiff (Universal) appeals from a judgment dismissing its claim against defendant (Esty) for liquidated damages resulting from breach of an alleged agreement not to compete. The trial court found that Universal was collaterally estopped from maintaining the action by an earlier Linn County decision involving the same parties. We reverse.

Universal, as seller, entered into a written contract with Esty, as purchaser, on October 16,1975. Under the terms of the contract, Universal trained Esty in the operation of its gourmet club business and granted him the exclusive right to use Universal’s…