Fine Foods, Inc. v. Dahlin
Vermont Supreme Court
523 A.2d 1228 (1987)
Dahlin (defendant) sold a successful restaurant to Fine Foods, Inc. (Fine Foods) (plaintiff). As part of the transfer, Dahlin signed a covenant not to compete. The covenant not to compete stated that, in consideration for $5,000, Dahlin agreed not to work in the restaurant business within a 25-mile radius of the restaurant being sold for a period of five years. Shortly after the sale, Dahlin began working as a maître d in a restaurant in the same town as his old restaurant. Fine Foods brought an action against Dahlin, seeking an injunction barring him from further violating the covenant. The trial court found that Dahlin had violated the covenant not to compete and granted the injunction. Dahlin appealed.
Rule of Law
Holding and Reasoning (Peck, J.)
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