Every evening, Wilmington daily commercial., 1922-05-17
CASE IS ORDERED
SUPERIOR COURT
BY THE CHANCELLOR
Growing Out Of Alleged Breach
Of Contract by Rival in
Business.
SOME DAMAGE is ADMITTED
Special Correspondence Every Evening

Special Correspondence Every Evening.
Dover. May t1.--An important de-
clslon has been handed down ny Chan
ccllor Wolcott, hearing upon the
question of "A contract between two
parties over the .olc and transfer OF
buildings. stock and fixtures and the
starting anew by one of the parties
In the same business. which had been
transferred etc. being an Illegal breach
Il contract.
The case IL that Of George Il. Scot
ten, George G. Scotch and Lyman j..
Scotch. trading as George Il. Scotch
a Sons. and also trading as Smyrna
Nash Motors Co. VS.. George ID. Wright
and George Harvey Wright, trading
as George ~. Wright 4 Son. The
hill before the chancellor was for in
junction and accounting. The de-
PENDANTS. on January 10. 1920, for the
consideration Of $4,000 agreed to sell
Co George l.. Scotch. one Ct the COM
plainanis. "all the garage property,
garage business and good Will. tools.
mechanical equipment and fixtures
situated ut their place Of business in
Smyrna. Delaware" IL was provided
in the agreement that settlement
should be made on February ., 1920.
on or about that date. transfer OF the
real estate, which constituted the
garage property. and delivery Of the
business, good will. tools. etc, was
duly made 10 George y. Scotch. the
purchaser. who paid the stipulated
price. The contract between the
parties contained. inter ALA, tho fol-
lowing clauses:
1T is agreed that the parties OF the
first part reserve the right to sell
Buick cars. parts for Buick cars, and
Co repair Buick ears in the town of
Smyrna. and this reservation is a
limitation of the sale Of the good will
above expressed.
And the parties OF the first part
undertake.. covenant and agree TO and
with the party OF the second part or
his heirs, executors. administrators
and assigns that they. or either OF
them, Will not hereafter operate a
garage or service station or engag,
IN the sale of automobiles or the sup.
plies, or repairs or accessories fol
same except by and according 10 tn,
above and foregoing reservation any
where in or adjacent 90 the town q
smyrna any time after the said sec
ond day OF February. a. ID. 1920"
Tho bin in its fifth paragraph AYERS
and the answer admits, that after
the said sale and delivery. rs afore
said, your orator. George II. Scotch
immediately engaged in the sale
garage business and associated with
himself In the said business. Jane,
l.. Scotch. George c. Scotch and Ly
Wan J. Scotch.
IL IL further averred and admitted
that James l.. Scottcn withdrew from
the business on September l. 1920
since which tin,c the complanants
trading as George J.. Scotch & Sons
and also trading as SMYRNA Nasi
Motors Co. have conducted the busl.
ness 80 purchased from the defend
ants by George i. Scotch.
The bill also charges that in tn
summer OF 1920 the defendants erect
ed garage about three-tenths of
mile eouth OF the corporate limits o
the town of Smyrna, where. prior 1
the time NJ the fling OF the bill an
ever since. they have conducted a gen
cral garage or service station and en-
gagged in the general sale OF automo
oiles. supplies. repairs and accessories
and have sold among other things
gasoline and oils and Ford motor We
hiclss, contrary 20 and in violatio
at their covenant; and agreement ebov
set out" The answer admits engagin
IN the business de~critsd from Angus
]. 1920; AYERS that the defendant
garage n eight-tenibs Of a mile fror
cornpiainant's garage; denies that III
conducting OF business al their prs
ent location ~ ;n violation OF the
covenant, and AYERS that their inten
ton 20 engage in such business wa
known 10 the compliments as earl