Crown Overall Manufacturing Co. v. Levy Overall Manufacturing Co.

Citations

• 16 Ohio N.P. (n.s.) 561
• 25 Ohio Dec. 439
• 1914 Ohio Misc. LEXIS 44

Syllabus

<p>Good Will — Restrictions on a Vendor Organizing a Competing Business— Notwithstanding the Absence of a Stipulation Not to Re-engaqe in a Similar Business — Injunction Against Inducing Employees of the Old Concern to Take Employment with the Competing Business.</p> <p>1. The vendor of the good will of a business, while retaining, in the absence of an express stipulation to the contrary, the right to re engage in a similar business, may not directly solicit business from known customers of the old firm, and an attempt on his part to do so will be enjoined by a court, of equity.</p> <p>2. Where the vendee of the good will organizes a corporation and transfers thereto all his right, title and interest in and to the property and good will of the old concern, the right which is by law conferred upon him to prevent interference with former customers devolves upon the newly organized corporation and may be enforced by it; and where the vendor of such good will thereafter organizes a corporation which engages in a similar business, such newly organized corporation will be bound by the same obligations with reference to such interference as those which devolved upon the vendor.</p> <p>3. The vendor of the good will of a business will be enjoined from endeavoring to induce former employees of such business to leave its employ and to join him in a competing business.</p>