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Lawskills.com Georgia Caselaw
ALADDIN, INC. v. KRASNOFF et al.
20209.
MOBLEY, Justice.
Petition for injunction. DeKalb Superior Court. Before Judge Vaughn. July 2, 1958.
WYATT, Presiding Justice.
1. While contracts in general restraint of trade are void (Code 20-504), a contract concerning a lawful and useful business in partial restraint of trade and reasonably limited as to time and place is not void. Black v. Horowitz, 203 Ga. 294 (1) (46 S. E. 2d 346), and cases cited. Unquestionably, the restraint as to entering a competing business for two years is, as to time, reasonable ( Shirk v. Loftis Bros. & Co., 148 Ga. 500, 97 S. E. 66; Nelson v. Woods, 205 Ga. 295, 53 S. E. 2d 227; Northeast Ga. Artificial Breeders Assn. v. Brown, 209 Ga. 547, 74 S. E. 2d 660; Breed v. National Credit Assn., 211 Ga. 629, 88 S. E. 2d 15); and the limitation as to area, ". . . accounts in Greater Atlanta . . . assigned to party . . . ," is also reasonable, and the restriction is valid and enforceable. Black v. Horowitz, 203 Ga. 294 (2), supra. See also Kirshbaum v. Jones, 206 Ga. 192 (56 S. E. 2d 484), where this court held valid an employment agreement which, without stating an express territorial limitation, restricted the employee for a period of one year from soliciting the employer's customers whom the employee had served during his employment.
2. The second restrictive covenant, regarding the disclosure of the names and addresses of past, present, and potential customers of the plaintiff, is too broad in scope to be considered as a mere reasonable and partial restraint of trade. It is unlimited as to either time or territory, and seeks to include all of the employer's past, present, and potential customers. Conceivably, this would include all of the plaintiff's customers from the time of its incorporation to that time in the unforeseeable future when it shall cease to do business. This covenant is an attempt at general restraint of trade and, as such, is unenforceable.
DuPree, 158 Ga. 590 (124 S. E. 13); National Linen Service Corp. v. Clower, 179 Ga. 136 (175 S. E. 460); Kirshbaum v. Jones, 206 Ga. 192, supra. Accordingly, the trial court erred in sustaining the general demurrer to the petition and in denying the temporary restraining order. See Sirota v. Kay Homes, 208 Ga. 113 (1) (65 S. E. 2d 597); Washington Nat. Ins. Co. v. Mayor &c. of Savannah, 196 Ga. 126 (1) (26 S. E. 2d 359).
I dissent for the reason I do not know what the Greater Atlanta area is.
Samuel L. Eplan, contra.
Bird & Howell, Robert L. Foreman, Jr., for plaintiff in error.
ARGUED SEPTEMBER 10, 1958 -- DECIDED OCTOBER 10, 1958 -- REHEARING DENIED NOVEMBER 7, 1958.
Saturday May 23 01:04 EDT


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