108 Me. 377 Flaherty v

• Decision Date: 07 October 1911
• Citation: 81 A. 166
• Parties: 108 Me. 377 FLAHERTY v. LIBBY.
• Court: Maine Supreme Court

81 A. 166

108 Me. 377FLAHERTY

v. LIBBY.

Supreme Judicial Court of Maine.

Oct. 7, 1911.

Report from Supreme Judicial Court, Cumberland County.

Bill by Patrick J. Flaherty against Charles E. Libby. On report. Decree for plaintiff.

Bill in equity brought by the plaintiff, praying that the defendant be enjoined from engaging, either directly or indirectly, in the trucking business in the city of Portland for five years. The defendant had previously sold his trucking business in said city to the plaintiff, and had agreed in writing that he would not engage in "any similar business in Portland, or vicinity," for the term of five years from the date of the agreement. An agreed statement of facts was tiled, and the cause reported to the law court for determination.

Argued before WHITEHOUSE, C. J., and SAVAGE, SPEAR, CORNISH, BIRD, and HALEY, JJ.

Connellan & Connellan, for plaintiff.

Percy M. Andrews, for defendant.

HALEY, J. This is a bill in equity, reported to this court upon an agreed statement of facts.

On the 1st day of August, 1910. and for several years prior thereto, the defendant, Charles E. Libby, was the owner of a trucking business in the city of Portland, and on that day sold, transferred, and delivered to the plaintiff said business; the bill of sale being in the ordinary form, with a full description of the property sold, and containing the following agreement:

"I also, in consideration of above, and other considerations named in the mortgage which is a part of this transaction, agree not to engage in any similar business in Portland, or vicinity, for the term of five years from the day of the date hereof."

The first week in May, 1911, the defendant entered into the employment of one Joseph F. Stephenson, who was engaged in the trucking business in Portland, being a business similar to that sold by the defendant to the plaintiff. The defendant was employed as a lumper, assisting teamsters of Stephenson in loading and unloading the teams engaged in the trucking business. He had been so employed for about two weeks, when the plaintiff brought this bill in equity, asking that he be "enjoined and restrained, during the pendency of the suit and during the remainder of the term of five years yet to elapse, as specified in said agreement, from carrying on, either alone or jointly with or as agent or servant of any person or persons, or agent, director, or servant of any other company, or otherwise, directly or indirectly, to assist in carrying on any business of a similar nature to the business transferred by him to the plaintiff at said Portland."

It is customary and oftentimes necessary that a person purchasing the business of another, with the good will that should follow the transaction, enters into an agreement with the seller, whereby the seller is restricted from engaging in a similar business within specified districts. If these agreements are not made, the seller, if he sees fit, can...