Fine Foods, Inc. v. Dahlin

523 A.2d 1228 (1987)

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Nature of the Case

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Facts

Dahlin (D) was a part owner of Taft’s Delectables, Inc. d/b/a Taft’s Restaurant. On December 3, 1983, D and his partner entered into an agreement with P to sell their business for the sum of $240,000. The agreement called for D and D’s corporation to execute and deliver a covenant not to compete. On the day of the closing on February 4, 1984, D delivered an executed covenant not to compete. The covenant stated that for the consideration of $5,000, D agreed for five years not to compete with P within a radius of 25 miles. The covenant also indicated that if D did compete, he would be liable for attorney’s fees. In December of 1984, P accepted the position of maître d' at the Old Newfane Inn in Bratteboro. D’s duties included greeting dinner guests, showing them tables, taking cocktail orders, lighting candles at the tables, flambéing, carving meats and serving wine. D earned $15 per night plus a portion of the tips received by the waitresses. D notified Ps of his position. Ps claimed that this position violated their covenant. D continued employment and Ps sued. The trial court held for P finding that D violated the covenant by accepting employment in a restaurant within 25 miles before the five-year period had expired. P was granted injunctive relief. D appealed.