Case Study: Noncompete Clause
Project description
ntroduction
Aviation businesses and professionals are regularly engaged in commercial transactions. Many of these transactions involve promises that the law will enforce. Some are legally enforceable and others are not. Some are in writing and others are not. Being able to distinguish the law and its applicability to commercial transactions in aviation is a valuable tool.
Instructions
For this assignment, complete the following:
Read case 4 (p. 188) from chapter 6 in Fundamentals of Aviation Law
Answer the following 3 questions.
Who will win the lawsuit?
On what grounds will the case be won?
What breach of contract remedies exist, if any, for Portier?
4. Glover owned an aircraft avionics shop located at Powell
Municipal Airport for more than 25 years. His business was very
successful, and aircraft owners flew in from surrounding states to
have him paint their aircraft. Glover wanted to retire and sell his
business. Portier was interested in buying the business, but only on
the condition that Glover agree to a noncompete clause in their
buy/ sell agreement. Glover agreed and signed an agreement with a
noncompete clause that stated, “Seller agrees not to enter into the
business of aircraft painting within a 500 mile radius of Powell
Municipal Airport for period of ten (10) years from the date of this
agreement and will not compete in any manner with the Buyers.”
Two years later, Glover was financially devastated by his compulsive
gambling habit. He needed money and opened up a paint shop at
Hutchins Town International Airport, about 400 miles from Powell
Municipal Airport. Portier sues Glover, claiming that Glover violated
their noncompete clause. Who will win? Discuss.